Developed new type of widget

Assignment Help Financial Management
Reference no: EM131939054

The Sterling Corp. has developed a new type of widget. The local distributor expects to increase his sales by 23% over the past year due to this new development. Last year's sales were $176,000 at a selling price of $103 per unit. A safety stock of 21 units has eliminated stockouts. The manager would like to cut costs as much as possible and comes to you for advice.

Reference no: EM131939054

Questions Cloud

Compute the standard error of the average : Compute the standard error of the average. Use the standard error to set a 95% confidence interval for the mean pulse rate of distance runners.
What is quantity standard and the price standard : What is the quantity standard and the price standard in your peer’s example?
Journalize the entries to record the transactions : Declared cash dividends of $3.00 per share on preferred stock and $0.06 per share on common stock. Journalize the entries to record the transactions
Worst the mean contamination : Place a one-sided 99% confidence limit on the worst the mean contamination might be.
Developed new type of widget : The Sterling Corp. has developed a new type of widget. The manager would like to cut costs as much as possible and comes to you for advice.
Journalize the bond issuance : On the first day of the fiscal year, a company issues a $3,800,000, 9%, Journalize the bond issuance
Prediction interval on the estimate : Estimate the mean population density of the algae in a lake with an acidity measurement of 2000 and a phosphorous measurement of 860.
What is the company target debt-equity ratio : If the company issued new securities in the same proportion as its target capital structure, what is the company’s target debt-equity ratio?
Amortization schedule to determine jim payoff amount : If after making the first 4 payments, Jim decides to refinance the loan at lower interest rate, use an amortization schedule to determine Jim's payoff amount?

Reviews

Write a Review

Financial Management Questions & Answers

  Leasing is very common practice with expensive

You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner (leasing is a very common practice with expensive, high-tech equipment). The scanner costs $5,800,000, and it would be depreciated straight-line to zero ove..

  Estimate of the firms cost of common equity using method

What is the estimated cost of common equity to the firm using dividend growth model? What is your estimate of the firm's cost of common equity using method?

  Risk-free rate have to for two stocks to be correctly priced

Stock Y has a beta of 1.2 and an expected return of 15.3 percent. Stock Z has a beta of 0.8 and an expected return of 10.7 percent. What would the risk-free rate have to be for the two stocks to be correctly priced?

  Why are generational cohorts important to marketers

Why are generational cohorts important to marketers? What do people in each age cohort have in common?

  Family restaurant business

Twins Jessica and? Joshua, both? 25, graduated from college and began working in the family restaurant business. how much will Jessica have at? retirement?

  Costs as percentage of sales on the contribution margin

What is the effect of an increase in variable costs as a percentage of sales on the contribution margin and on the break-even dollar amount?

  How long will it be before you have enough to buy the car

You're trying to save to buy a new $204,000 Ferrari. You have $54,000 today that can be invested at your bank. The bank pays 6.2 percent annual interest on its accounts. How long will it be before you have enough to buy the car?

  About the level of expected sales

We are examining a new project. We expect to sell 5,600 units per year at $70 net cash flow apiece for the next 10 years. In other words, the annual operating cash flow is projected to be $70 × 5,600 = $392,000. After the first year, the project can ..

  Arbitrage opportunity-what is the investment strategy

The current price for put and call option with strike price of $30 are $9.57 and 5.20 respectively.Is there arbitrage opportunity. What is investment strategy.

  What will be resulting percentage change in earnings share

what will be the resulting percentage change in earnings per share if they expect units produced and sold to change -2.4 percent?

  What is the operating cash flow for the project in year two

The tax rate is 30 percent and the required return on the project is 12 percent. What is the operating cash flow for the project in year 2?

  What is the amount of the firms current assets

Killer Whale, Inc. has the following balance sheet statement items: total current liabilities of $693186; net fixed and other assets of $1832451; total assets of $3472745; and long-term debt of $806548. What is the amount of the firm's current assets..

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