Develop a marginal profit and loss statement

Assignment Help Finance Basics

Reference no: EM13256455

You are examining a proposal for a new business opportunity-a new procedure for which demand is expected to be 1,400 units the first year, growing by 600 units a year thereafter. You are able to perform 2,400 units per year. The price charged per procedure is $1,000. The collection rate is anticipated to be 80%. Each procedure consumes $300 of supplies. Salary cost is estimated to cost $600,000 each year, fringe benefits are 25% of salaries, office supplies not associated with the procedure are $1,000 per month and rent for the facility is $88,000 a year.

Question: Develop a marginal profit and loss statement for this business opportunity.

Based on that analysis, should this opportunity be pursued?

Reference no: EM13256455

Questions Cloud

Product positioning is the-perception consumers : Product positioning is the-perception consumers have of a company or brand relative to other brands being offered by the company.

How far does the ball drop on its path to home plate : The fastest baseball throw is approximately 160km/hr. The ball is released 18.4 m from the back of home plate at a height of 2 m.

Question-alico corporation : Alico Corporation bonds have a face interest rate of 8%, a face value of $100,000 and will mature in 20 years. Interest is paid semi-annually. If you require an annual yield of 7.4%, what price would you be willing to pay for the bond?

Appropriate journal entry to record case : Assuming no differences between accounting and taxable income other than those described above, prepare the appropriate journal entry to record Case's 2009 income taxes.

Develop a marginal profit and loss statement : Develop a marginal profit and loss statement for this business opportunity.

Describe oxygen and water and carbon dioxide : When nitroglycerin explodes it produces nitrogen, oxygen and water and carbon dioxide. If the heat of reaction is -5692 kj/mol how much heats released when 4.5 g of the explosive reacts

Which requires both three phase and single phase supplies : The amount of three phase power to be delivered in ‘kW' is equal to the total number of letters in your name (first name +last name) and the single phase power is 10% of three phase power. Assume same power factor for both types of loads.

What is the average force in newtons felt : A car traveling at 25 m/s ( about 55 mph) crashes into a road barrier and comes to a stop in 0.2 sec. What is the average force in Newtons felt by a 75 Kg person in a set belt

Question-zagnut industries : Zagnut Industries finds itself with a need for a new packaging machine for its candy products. They prefer to lease the asset. The company finds that the market value for the equipment is $211,600.

User Account

All Pages