What absolute increase in dollar sales volume

Assignment Help Finance Basics
Reference no: EM132046667

Drake, Inc. manufactures electric welders that it sells to other manufacturers, and sales last year were $45 million. Drake has a 35% contribution margin. The marketing manager has suggested increasing the number of sales representatives by five, which would cause fixed costs to increase by $250,000. Another suggestion is to reduce price by 10%.

  1. What absolute increase in dollar sales volume would be necessary to maintain Drake's current contribution if price was reduced by 10%?

Reference no: EM132046667

Questions Cloud

How we can become better at accepting cultural diversity : Find two articles that list steps or explain how we can become better at accepting cultural diversity in the United States.
Amount of money that you deposited today : You discover that at the end of one year you have $ 11,325 in the account. What was X, that is, the amount of money that you deposited today?
What is the current share price for the stock : Universal Laser, Inc., just paid a dividend of $4.00 on its stock. What is the current share price for the stock?
Why you selected each and what you like or dislike : Explain why you selected each and what you like or dislike about it. Compare this style to a modern film, type of film, or to a modern situation.
What absolute increase in dollar sales volume : What absolute increase in dollar sales volume would be necessary to maintain Drake's current contribution if price was reduced by 10%?
Precision of or narrowing the confidence interval : What is the most controllable method of increasing the precision of or narrowing the confidence interval?
What nominal rate of return did you earn : If the inflation rate for the past year was 2.0%, what nominal rate of return did you earn on this investment?
Write two descriptions on selected topics : Select one of the following topics and write two descriptions-each in about 100-120 words-of it. In the first description, use technical details and vocabulary.
How much did you make or lose : If you bought 10 contracts (1 contract = 100 options) of the 50 strangle for $8 (the cost of the put and call together was $8), and the stock was $55

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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