Required in order to meet the minimum profit goal

Assignment Help Financial Management

Reference no: EM13948873

Variable Cost per unit is $175, the sales price would be set at twice the VC/unit and fixed costs are $500,000. The target operating income (EBIT) is $350,000. What sales volume would be required in order to meet the minimum profit goal? (Hint: use break even formula, but include the required profit in the numerator)

Reference no: EM13948873

Questions Cloud

What barriers does hrm continue to face today : What barriers does HRM continue to face today? What will HRM face going forward?

Define the tools and indicate how the tools could be used : Alternative analysis involves comparing two or more alternative ways to address a project activity. Define the tools and indicate how the tools could be used

Growth of bank holding companies and interstate banking : Several dominant movements in determining the structure of U.S. banking have been the spread of branch banking, the growth of bank holding companies and interstate banking which permits the geographic expansion of banking services and the ability of ..

Mass of wheels and any frictional resistance to motion : Neglect the mass of the wheels and any frictional resistance to motion. The density of sand is rs = 1520 kg>m3.

Required in order to meet the minimum profit goal : Variable Cost per unit is $175, the sales price would be set at twice the VC/unit and fixed costs are $500,000. The target operating income (EBIT) is $350,000. What sales volume would be required in order to meet the minimum profit goal? (Hint: use b..

What is the worst case input scenario for each operation : Successor - the tree has one node on left subtree and resembles a linked list on right subtree .

Maintain target debt-to-equity ratio : A company's CFO wants to maintain a target debt-to-equity ratio of 1/4. If the WACC is 18.6%, and the pretax cost of debt is 9.4%, what is the cost of common equity assuming a tax rate of 34%? A. 19.90% B. 20.90% C. 21.70% D. 22.73%

Return on investment-retirement goals : Jim would like to retire in 35 years. Once he retires, he would like to have 120,000 at the end of each year until the day he passes away (30 yrs. after retirement). He believes he can earn a 7% return on his investment. Starting next year how much m..

European call option on index with the same strike price : Currently the index is standing at 1,068. The risk-free rate is 4% per annum and the dividend yield is 1% per annum. A 6-month European put option on the index with a strike price of 1000 is trading at $46.59. What is the value of a 6-month European ..

User Account

All Pages