Determine the break-even point

Assignment Help Financial Management
Reference no: EM13806153

Davison Toaster Corp. sells its products for $100 per unit. It has the following costs:

Rent $100,000

Factory labor $16 per unit

Executive salaries $120,000

Raw material $4.00 per unit

The break-even point is

Options:

less than 2500 units

2500 units

more than 2500 units

not enough information has been provided to determine the break-even point.

Reference no: EM13806153

Questions Cloud

What is the value of a share of a firms stock : What is the value of a share of a firm's stock when the firm is expected to pay a $2.80 per share dividend at the end of each year and the annual discount rate is 7.5 percent?
Profit margin and total asset turnover remain unchanged : The board of directors is dissatisfied with lasy year's ROE of 15%. if the profit margin and total asset turnover remain unchanged at 8% and 1.25 respectively, by how much must he total debt ratio (D/A) increase to achieve a 20% ROE?
What will be the value of the investment in two years : Your brother has asked you to help him with choosing an investment. He has $6,000 to invest today for a period of two years. You identify a bank CD that pays an interest rate of 0.0300 annually with the interest being paid quarterly. What will be the..
Accumulate enough money for a down payment : Chin order to accumulate enough money for a down payment on a house, a couple deposits $313 per month into an account paying 3% compounded monthly. If payments are made at the end of each period, how much money will be in the account in 6 years.
Determine the break-even point : Davison Toaster Corp. sells its products for $100 per unit. It has the following costs: not enough information has been provided to determine the break-even point.
Write an equation for the cost function : A company is planning to manufacture snowboards. The fixed costs are $100 per day and total cost are $5700 per day at a daily output of 20 boards. Assuming that the total cost per day, c(X), is linearly related to the total output per day, x, write a..
Locked into its first interpretation of statute : Should an administrative agency be locked into its first interpretation of statute? In the ruling that the Supreme Court reviewed in the case FCC vs. Fox television, did the us court of appeals for the second court reject the face reasons for its act..
Maturity quoted at a discount yield : What is the price of a U.S. Treasury bill with 76 days to maturity quoted at a discount yield of 1.90 percent? Assume a $1 million face value.
What is the yield to maturity on treasury strips : What is the yield to maturity on a Treasury STRIPS with 11 years to maturity and a quoted price of 63.695?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd