Ecocars manufactures a new ultra-sporty electric vehicles ta

Assignment Help Finance Basics

Reference no: EM13802897

EcoCars manufactures a new ultra-sporty electric vehicles targeted to MBAs and other higher-earning professionals. EcoCars' management has asked you to help the firm identify its EBDAT breakeven level. The company has only one product, the eBolt. The firm's cars sell for $52,000 each (all production is outsourced to an external manufacturer). Each car costs $44,200 in materials and manufacturing costs. The firm's office lease in Silicon Valley is $1.2 million annually. Its marketing and advertising expense is $2.5 million per year, and salaries and insurance run $2.3 million annually.

Part 1: Calculate the firm's

1) EBDAT revenue, and

2) contribution profit margin at EBDAT breakeven.

Part 2: If the firm sells 575 vehicles, what will be its

3) gross profit percentage,

4) operating income, and

5) operating income percentage?

Reference no: EM13802897

Questions Cloud

Write a program that will indicate two straight lines : Write a program that will indicate whether two straight lines intersect. Each line is specified by giving two points (xi, yi) that are on the line

Compute the estimated direction of current motion : This is your template code for a simple maze "game". The player's task is to drag an arrow through the maze from the red starting dot to touch the Blue middle square without touching the black maze walls on the way. compute the estimated direction ..

Five pillar of islam and christianity two commandments : Compare and contrast the Five Pillar of Islam and Christianity's Two Commandments of Love.

Freedom of speech : Freedom of Speech

Ecocars manufactures a new ultra-sporty electric vehicles ta : EcoCars manufactures a new ultra-sporty electric vehicles targeted to MBAs and other higher-earning professionals. EcoCars' management has asked you to help the firm identify its EBDAT breakeven level. The company has only one product, the eBolt. The..

Examine the loop statements in the code sample column : Examine the loop statements in the Code Sample column of the template. Identify the loop type used in the Loop Type column of the template

Threats and vulnerabilities to information security : The chapter discussed many threats and vulnerabilities to information security. Using the Web, find at least two other sources of information on threat and vulnerabilities. Begin with www. Securityfocus.com and use a keyword search on "threats."

Is open-source software enough to successfully run programs : How can each tool be helpful? Is open-source software enough to successfully run and implement PROGRAMS? Must a company purchase software to complete the job

What is the importance of the turnover of accounts receivabl : What is the importance of the turnover of Accounts Receivables? •Why is it is essential for organizations to keep cash reserves on hands? •Is it possible to still bring in a lot of revenue, but still be short on cash? •How can this happen or not happ..

User Account

All Pages