How many sales dollars does the company

Assignment Help Finance Basics
Reference no: EM132499761

A company has variable costs that are 1/8 the value of their sales revenues. Total net income for the most recent period was a profit of $50 400 and sales were $500 000. The company has started a new marketing campaign that they hope will increase sales, but it will require additional advertising of $15000. How many sales dollars does the company have to generate in order to remain at the same level of profitability as before the new ad campaign?

Reference no: EM132499761

Questions Cloud

New economist for a major financial institution : New economist for a major financial institution, and you've been invited to speak as a guest lecturer for a Freshman Finance course at the local
How many payments are needed : Milton Investments borrowed $32 000 at 11% compounded semi-annually. The loan is to be repaid by payments of $4500 due at the end of every six months.
Remaining term on current mortgage : Considering the following information, what is the NPV if the borrower refinances the loan? Expected holding period: 3 years; current loan balance
Determine the total interest use the us rule : Determine the total interest use the U.S. Rule. (Do not round intermediate calculations. Round your answer to the nearest cent.)
How many sales dollars does the company : How many sales dollars does the company have to generate in order to remain at the same level of profitability as before the new ad campaign?
Compute the modified irr using a 12 percent discount rate : 1. The cash flows for a 4-year investment in Bolivia are given below. The discount rate is 12 percent. Please watch: NPV and IRR using BAiiPlus (5:19),
What is the accrued interest : What is the purchase price of the bonds? (6) What is the accrued interest? (2) What is the market price of the six bonds?
Explain the elements that define pure security prices : Explain the elements that define pure security prices in terms of what economic factors will influence them.
Bond schedule for the first three interest periods : A $5000, 5.5% bond with semi-annual coupons redeemable at par is bought four years before maturity to yield 7% compounded semi-annually.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the cost of common equity capital for the firm

If the current price of Two-Stage's common stock is $14.20, what is the cost of common equity capital for the firm? (Do not round intermediate calculations. Round answer to 0 decimal places, e.g. 15%.)

  Define standardized routine of ratio analysis

"The indiscriminate application of a standardized routine of ratio analysis to all companies regardless of size, industry, and peculiar characteristics.

  What interest rate are effectively offering customers

You have looked at the credit policy offered by your competitors and have determined that the industry standard credit policy is 1/10, net 45.

  What should someone pay today for this land

The land can be rented in 2019 at a net proceeds of 40,000. What should someone pay today for this land if given the choice

  Determine the maximum amount for payment

The Bradshaw Corporation's most recent dividend was $6.75. The historical dividend payment by the firm shows a constant growth rate of 5% per year.

  Find the break even points for plan

Find the break even points for Plan 1 and the all Equity, Plan 2 and the all Equity, and Plan 1 and Plan 2.

  How does an etf differ from a closed-end fund

What is the difference between an open-end mutual fund and a closed-end fund? What is an exchange-traded fund (ETF)? How does an ETF differ from a closed-end fund?

  Financial hedging techniques

Drawing on literature, critically evaluate all these hedging techniques. Illustrate your arguments with appropriate examples / cases / empirical studies review.

  Expected return of the market portfolio

If the risk free rate is 2.00% and the expected return of the market portfolio is 6.00%, what is the company's wacc?

  Toward the purchase of the car and secures

The price of a new car is $20,000. Assume that an individual makes a down payment of 25% toward the purchase of the car and secures financing

  Positive exposure to event risk

Why traditional financial assets have negative exposure to event risk, while commodities generally have positive exposure to event risk?

  Production of goods and cash flow from sales

Calculate the cash flow due to production of goods and cash flow from sales if sales are $9,250, cost of goods sold are $8,850, accounts receivable decreases by $950, and inventory increases by $460.

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