What are the total fixed costs for new battery

Assignment Help Financial Management
Reference no: EM131529773

Zinc Energy Resources Co., a new division of a major battery manufacturing company, recently patented a new battery that uses zinc-air technology. The unit costs for the zinc- air battery are as follows: The battery housing is $6, materials are $7.25, and direct labor is $6.75 per unit. Retooling the existing factory facilities to manufacture the zinc-air batteries amounts to an additional $1.4 million in equipment costs. Annual fixed costs include sales, marketing, and advertising expenses of $1.8 million; general and administrative expenses of $1.1 million; and other fixed costs totaling $2.8 million.

Please answer the following questions.

a. What is the total per-unit variable cost associated with the new battery?

b. What are the total fixed costs for the new battery?

c. If the price for the new battery was set at $34, what would the breakeven point be?

Reference no: EM131529773

Questions Cloud

Offers a constant growth rate : How much should you pay for a share of stock that offers a constant growth rate of 10%,
Violation of the efficient market hypothesis : Is this in violation of the Efficient Market Hypothesis?
Regarding equities-what is stand-alone risk : What is stand-alone risk ? What is the connection of a stock to market risk ?
The default risk of corporate bonds decreases : Suppose the default risk of corporate bonds decreases. Suppose the Federal Reserve makes a discount loan to a bank.
What are the total fixed costs for new battery : What is the total per-unit variable cost associated with the new battery? What are the total fixed costs for the new battery?
Calculate the effective rate of interest : Assume the $27,872 Treasury bill, 5% for 15 weeks. Calculate the effective rate of interest.
Market portfolio and standard deviation : What expected rate of return would a security earn if it had a .54 correlation with the market portfolio and a standard deviation of 55.9 percent?
What price should they sell the bicycles : If they would like to earn 23% per unit, at what price should they sell the bicycles?
The present value of the free cash flows : A retail coffee company is planning to open 95 new coffee outlets that are expected to generate $16.3 million in free cash flows per year,

Reviews

Write a Review

Financial Management Questions & Answers

  Compute the pi statistic for project

Compute the PI statistic for Project Q if the appropriate cost of capital is 11 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project Q Time: 0 1 2 3 4 Cash flow –$11,400 $3,550 $4,380 $1,720 $2,35..

  Explore a companys annual report

Provide common size analysis of your company's income statement and balance sheet for the 2 most recent years (must be done using Excel with formulas).

  Certain features of bonds affect their risk and hence return

Discuss how certain features (characteristics) of bonds affect their risk and hence return. Also discuss the usefulness and limitations of bonds ratings. How would these factors change your investment strategy when looking at bonds?

  Consecutive annual payments

Find the Present Value of an annuity of 10 consecutive annual payments of $10 than begin at the end of the first year with one exception; there is no payment at the end of year 5 (and only in year 5). Use an interest rate of 7%

  Basic financial statements in the most recent annual report

Look at the four basic financial statements in the most recent annual report (listed as "10K") for any publicly traded corporation.

  Weighted-average cost of capital

Moffett Machinery has 20 million shares of outstanding common stock, each with a market price of $18/share. The remainder of the firm's capital structure consists of $600 million worth of bonds selling at 90% of par and carrying an 8.5 percent yield ..

  What is expected return of your portfolio

What is the expected return of your portfolio if Jacob, Bella, and Edward have expected returns of 0.08, 0.17, and 0.16, respectfully?

  Balance sheet-statement of retained earning-income statement

Financial Statements are critically important in understanding the overall "financial health" of a company. All of the financial statements must be reviewed as a complete package rather than one being analyzed as a standalone statement that could giv..

  Capital asset pricing model to estimate the cost of equity

you may want to use the capital asset pricing model (CAPM) to estimate the cost of equity.

  Company to make equal semi-annual payments forever

Fairfax Paint just borrowed 61,900 dollars. The terms of the loan require the company to make equal semi-annual payments forever. The first semi-annual payment is due in 6 months. If the regular semi-annual loan payment is 4,650 dollars, then what is..

  What are the total costs

Annual demand 160,906 units Carrying costs $3.19 per unit Fixed Costs per order $5.6 Number of orders 48 What are the total costs?

  How may managers be able to boost reported earnings

Why may the top managers of a firm be tempted to use misleading estimates of revenues and expenses? How may managers be able to boost the reported earnings of their firm?

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