Making a smaller increase in sales

Assignment Help Finance Basics
Reference no: EM132753982

Rancor Electronics sells 5,000 mp3 players and earns Tk.2.5 million in revenues. Rancor's variable costs are Tk.600,000 and its fixed operating costs are Tk.1.52 million.

a. How many mp3 players does Rancor have to sell recover all its operational costs?

b. Can Rancor earn a larger increase in operating income by making a smaller increase in sales?

c. Suppose Rancor has Tk.1 million in debts at a 10 percent rate of interest and is subject 38 percent tax rate. How many mp3 players will Rancor have to sell in order attain its financial breakeven point?

Reference no: EM132753982

Questions Cloud

Basic requirements for data communication and networking : Compare the different transmission media technology and select the appropriate ones and Explain the concepts behind the Network addressing and Routing Protocols
What is the current share price : Problem - Stock Valuation - A return of 13 percent for the next three years, and a return of 11 percent thereafter. What is the current share price
What is the portfolio expected shortfall : What is the portfolio's expected shortfall when the confidence level is 98% and the time horizon is five days?
How does a superior bond differ from a subordinate bond : How does a superior bond differ from a subordinate bond?
Making a smaller increase in sales : Rancor Electronics sells 5,000 mp3 players and earns Tk.2.5 million in revenues. Rancor's variable costs are Tk.600,000 and its fixed operating costs are Tk.1.5
Prepare consolidated financial statements as at June : Maine Ltd charged Lion Ltd management fees of $15,000. Prepare the journal entries necessary to prepare consolidated financial statements as at 30 June 2021
Should the truck be leased or purchased : Should the truck be leased or purchased? Provide your decision based on NPV analysis.
Construct a two period binomial tree for acc : Two-month call options on ACC with an exercise price of ?840 are available. The volatility of ACC stock price is estimated at 20%, and the risk-free rate is 8%.
What transactions will be undertaken to exploit arbitrage : 1. Suppose a non-dividend paying stock is trading at 150. If the risk-free lending rate is 7%, whereas the borrowing rate is 9%,

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute the percentage total return-dividend yield

Compute the percentage total return, dividend yield, and capital gains yield.

  What is the firms sales to working capital ratio

A firm has sales of $2 million per year. Its current assets total $5 million and it current liabilities total $2 million. What is the firm's Sales to working capital ratio?

  Gap face as they plan for retirement

What unique problems do couples with a wide age gap face as they plan for retirement? What are some solutions to the situation?

  What type of credit did gordon use

Which reason for indebtedness is this an example of? Gordon Carey uses his Visa card to purchase a new digital camera and lens. What type of credit did Gordon use?

  Calculate the amount of the firm gross profit

Evening Story Corporation has sales of $4,961,789; income tax of $360,388; the selling, general and administrative expenses of $275,427; depreciation

  Fill in the blanks using the following terms floating rate

fill in the blanks using the following terms floating rate common stock convertible subordinated preferred stock

  Jillian black has a sole income from halcyon

Assume that Jillian Black has a sole income from Halcyon Ltd in which she owns 10% of the ordinary share capital.

  Corporate responsibility and marketing strategies

Use the Internet to research the Apple Corporation, its current position and reputation regarding ethical and social responsibility, and the strategies that it currently employs to market its products.

  What recommendations can you make to management

Based on your analyses, what is your opinion of the financial health of the company that you researched? What recommendations can you make to management?

  Sales promotion tools used to target consumers

Identify and provide an example of three sales promotion tools used to target consumers.

  Calculate the expected rate of return for the shareholders

It is expected that - at the end of one year - it will pay a dividend of $6 per share and then be sold for $114 per share.

  Review problem on the new car

You have arranged for a loan on your new car that will require the first payment today. The loan is for $42,500, and the monthly payments are $730.

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