User Account

All Pages

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

  What would be the offered price for this

an investor wants to acquire a small business which sells electronics with an average turnover of 725000 euros. this

  Estimate the company net income

If a company can expect an extra $2 million in sales if it enters a new market and it knows that 15 percent of its sales will be uncollectible, collection costs will be 2 percent on all new sales,

  How much could be justified now for the purchase

Excel (NO Interest Table solving required). It is estimated that a certain piece of equipment for your BRG project can save VTEPS, Inc. $22,000 per year.

  Calculate the current price of patience

Calculate the current price of Patience, Inc. stock that is expected to pay a dividend of $4/share at the end of each year from year 33 through year 61, given a discount rate of 5%. This stock is not expected to pay any dividends before, nor any ..

  Required real yields to maturity

1. Given the following data on yields of 10 year Treasury notes and 10 year TIPS,(treasury inflation protection securities), and assuming that in parts a and b you assume that required real yields to maturity are the same in indexed and regular tr..

  Compute the duration for bond c and rank the bonds on the

compute the duration for bond c and rank the bonds on the basis of their price volatility. the current rate of interest

  Is the tax deductible

What is the toatl dollar call premium required to call the old issue? Is the tax deductible? What is the net after-tax cost of the call?

  Time is money-emily oster

Please give a written summarization on article "Time is Money" by Emily Oster. What is the take away of article?

  Discuss about the expected dividend yield

If Company X's stock is expected to pay a dividend of $1.25 during the next 12 months, growth rate of dividends is constant at 4.7%, and X's current price.

  Three ratios from the activity ratios

Your responsibility will be to do three ratios from the Activity Ratios. The three being: Inventory Turnover, Accounts Receivable Turnover, and Total Asset Turnover. Either by downloading the financial report from the Walt Disney website, or on the N..

  What percent change in value has the stock had

What percent change in value has the stock had? How does that compare to the change in the Dow Jones Industrial Average (symbol DJIA) over the same years

  What are the reasons for the decline of traditional banking?

What are the reasons for the decline of traditional banking?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd