Find the operating breakeven point

Assignment Help Corporate Finance
Reference no: EM1348320

Given the prices and cost data shown in the accompanying table for each of the three firms, F, G, and H, answer the following questions.

Firm F G H
Sale price per unit $18.00 $21.00 $30.00
Variable operating cost per unit 6.75 13.50 12.00
Fixed operating cost 45,000 30,000 90,000

a. What is the operating breakeven point in units for each firm?
b. How would you rank these firms in terms of their risk?

 

Reference no: EM1348320

Questions Cloud

Irr method : Using the table identify the crossover point and briefly explain the significance when the crossover rate is greater than cost of capital for mutually exclusive projects.
Rights and existence : When you look at designing tests you have to 1st look at what objectives are you are trying to get. For example if you look at cash in banks you know that there are 2 main objectives:
Explaining anticybersquatting consumer protection act : What does Anticybersquatting Consumer Protection Act perform? How does this act cut down on nuisance suits?
Calculate the cost of the preferred stock : Taylor Systems has just issued preferred stock. The stock has a 12% yearly dividend and a $100 par value and was sold at $97.50 each share. In addition, flotation costs of $2.50 each share must be paid.
Find the operating breakeven point : Given the values and cost data shown in the accompanying table for each of 3 firms, F, G, and H, answer the following questions.
Finding best companies to invest : Explain and discuss each corporation using fundamental analysis or technical analysis and select the best one (using current information).
Math graph questions set : Correctly match each of the following descriptions to a graph below by inserting the letter of the description that correctly describes the graph in the open box under the graph.  The graph has both an Euler circuit and a Hamilton circuit.
Biologically inspired method : Biological ly Inspired Methods + Ma tlab Assignmen t,  Define a problem of your choice which can be tackled by Biologically Inspired Methods. The problem must satisfy the following requirements
Statistical critical thinking and application skills : Statistical Critical Thinking and Application Skills,  Discuss the research paper. Design and perform an experiment to answer the questions:

Reviews

Write a Review

Corporate Finance Questions & Answers

  Explain the current reforms, their strength and weaknesses

You have been asked to write an article for The Economist analysing the debate initiated by Robert Shiller about democratising finance & comparing this with the kinds of regulatory measures

  Purpose the closing entries for the general journal

Closing entries for general journal - Purpose the closing entries for the general journal or close the revenue and expense columns.

  Costs to increase product offerings

Lake City Plastics currently manufactures plastic plates and silverware. The corporation is planning expanding its product offerings to include plastic serving trays.

  Finding the stock and debt

Suppose I am a 100% shareholder of Johnson Corporation. At the starting of 2010, My basis in Johnson Corporation stock was $14,000. During 2010, I loaned $20,000 to Johnson Corporation and Johnson Corp. reported a $25,000 ordinary business loss

  Find cash paid for interest

On October 31, 2011, Bondable, Inc. issued $20,000 of 10-year, 6% bonds at 100. Bonds pay interest yearly on October 31. On its statement of cash flows for the year ended December

  Calculate the investor payment

An shareholder is thinking the purchase of twenty-five acres of land. An analysis indicates that land will produce a cash flow of $10,000 per year forever.

  Calculation of swap and loan amount for euros

International finance requires calculation of swap and loan amount for euros with given exchange rates - Show me issue dollar loan, swap dollars for euro and net cashflow for each of these years. Also, inflows are show as positive values.

  Find the highest price for the stock

A stock is expected to pay a dividend of $2.50 one year from today, & growth rate is expected to be steady at 8 percent. If your required return is 14 percent,

  Prepare journal entries for the items

Prepare a bank reconciliation - Prepare journal entries for the items that should be journalized on Randy's books.

  Assumptions of the capital asset pricing model

Consider a world where the assumptions of the Capital Asset Pricing Model hold. How are agency costs controlled in a "CAPM world?" and How can the financial markets reduce the total agency costs of the firm?

  Analysis of financial position under asset utilization

Analysis of financial position under Asset utilization method - Please analyze the financial condition of the company; under the following category

  Calculate the dollar amount of acceptable accounts

Springer manufactures wants to borrow $80,000 from a local bank using accounts receivables to secure its loan. The banks procedure is to accept as collateral accounts that are normally paid within thirty days

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