How many phones must be sold to achieve the breakeven point

Assignment Help Financial Management
Reference no: EM131074623

U.S. Telephone Cellular sells phones for $100. The unit variable cost per phone is $50 plus a selling commission of 10% (based on the unit sales price per phone). Fixed manufacturing costs total $1,230 per month, while fixed selling and administrative costs total $2,450. How many phones must be sold to achieve the breakeven point?

Reference no: EM131074623

Questions Cloud

What bid price should you submit on the contract : Consider a project to supply 100 million postage stamps per year to the U.S. Postal Service for the next five years. You have an idle parcel of land available that cost $1,900,000 five years ago; if the land were sold today, it would net you $2,100,0..
Dequate compensation for this investment : You are considering the purchase of Crown Bakery, Inc. common stock that just paid a dividend od $19.59 per share. You expect the dividend to grow at a rate of 1.04 percent per year, indefinitely. You estimate the rate of return od 12.18%, will be ad..
Average-risk investment in mineral water spring project : The Rodriguez Company is considering an average-risk investment in a mineral water spring project that has a cost of $155,000. The project will produce 950 cases of mineral water per year indefinitely. Assume that cash flows consist only of after-tax..
How much loss would company recognize on income statement : Randy's tireland makes a product that sells for $63 per unit and has $47 per unit in variable costs. Annual fixed costs are $24,000. If Rambles sells 10 units less than breakeven, how much loss would the company recognize on its income statement?
How many phones must be sold to achieve the breakeven point : U.S. Telephone Cellular sells phones for $100. The unit variable cost per phone is $50 plus a selling commission of 10% (based on the unit sales price per phone). Fixed manufacturing costs total $1,230 per month, while fixed selling and administrativ..
What is the current value per share at discount rate : Martin's Yachts is expected to pay annual dividends of $1.40, $1.75, and $2.00 a share over the next three years, respectively. After that, the dividend is expected to remain constant. What is the current value per share at a discount rate of 14 perc..
Type of business which is reflected in its dividend policy : Beaksley, Inc. is a very cyclical type of business which is reflected in its dividend policy. The firm pays a $2.00 a share dividend every other year with a payment being paid today. Five years from now, the company is repurchasing all of the outstan..
The firm has debt outstanding with a market value : Russell’s has annual revenue of $387,000 with costs of $216,400. Depreciation is $48,900 and the tax rate is 30 percent. The firm has debt outstanding with a market value of $182,000 along with 9,500 shares of stock that is selling at $67 a share. Th..
Estimate of the maximum share price for the purchase : Happy Times, Inc., wants to expand its party stores into the Southeast. In order to establish an immediate presence in the area, the company is considering the purchase of the privately held Joe’s Party Supply. What is your new estimate of the maximu..

Reviews

Write a Review

Financial Management Questions & Answers

  Write about leaadership

Write about leaadership

  Suppose a proposed public policy could result

Suppose a proposed public policy could result in three possible outcomes: (1) present value of net benefits of $5,000,000 (2) present value of net benefits of $1,000,000 or (3) present value of net benefits of -$12,000,000 (loss). Suppose society is ..

  Risk-free interest rates

The South Korean multinational manufacturing firm, Nam Sung Industries, is debating whether to invest in a 2-year project in the United States. Risk-free interest rates in the United States and S. Korea are: What would be the rate of return generated..

  Question 1 during periods when inflation is increasing

question 1. during periods when inflation is increasing interest rates tend to increase while interest rates tend to

  Two bond issues outstanding-paying the same annual interest

Crawford inc has two bond issues outstanding, both paying the same annual interest of $110, called series A and series B. Series A has a maturity of 12 years, whereas series B has a maturity of 1 year. Why does the longer term (12 year) bond fluctuat..

  Calculate the annual cost of each of the three accounts

Judith Bao is a registered nurse who earns $3,250 per month after taxes. She has been reviewing her savings strategies and current banking arrangements to determine if she should make any changes. Calculate the annual cost of each of the three accoun..

  Default correlation between firms

If firm A's default probability is 10%, firm B's default probability is 20%, and the joint default probability between the two firms is 3%, solve for the default correlation between firms A and B.

  Find the total amount repaid-future value of the debt

Suppose that after graduation that Sarah must pay back $70,000 in student loans and that she has 15 years to do so. She has a direct subsidized undergraduate loan with an interest rate of 4.29%, compounded monthly and this interest starts to accrue t..

  What is the yield to maturity on a treasury strips

What is the yield to maturity on a Treasury STRIPS with 11 years to maturity and a quoted price of 63.695?

  What is the basic earnings per share of common

What is the basic earnings per share of common?

  Find the interest rates earned

Find the interest rates earned on each of the following. Round each answer to two decimal places. You borrow $70,000 and promise to pay back $648,587 at the end of 15 years.

  Face value bond quoted

A $1,000 face value bond quoted as 102.16 sells for _____ and a bond quoted as 99:08 sells for _____.

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