What is sales revenue under the optimistic case scenario

Assignment Help Financial Management
Reference no: EM131541675

The Adept Co. is analyzing a proposed project. The company expects to sell 3,100 units, give or take 5 percent. The expected variable cost per unit is $9 and the expected fixed costs are $10,500. Cost estimates are considered accurate within a plus or minus 4 percent range. The depreciation expense is $4,000. The sale price is estimated at $18 a unit, give or take 3 percent. What is the sales revenue under the optimistic case scenario?

59,208.92

$57,491.61

$57,474.00

$60,347.70

$62,408.15

Reference no: EM131541675

Questions Cloud

Provide information about income and changes in income : The income statement should provide information about income and changes in income.
Analyze the business problem or opportunity · analyze why t : Analyze the business problem or opportunity. Analyze why the business problem is important. Identify what variable would be best to measure for this problem.
Prestigious management consulting firm : Upon graduation from University, you have a joined a prestigious management consulting firm.
What does this statement mean to you : write one or two paragraphs responding to the following statement: If management gets a union, it deserves one. What does this statement mean to you?
What is sales revenue under the optimistic case scenario : What is the sales revenue under the optimistic case scenario?
Explain the importance of data mining : 1. Explain the importance of data mining, and examine its implementation in real-world scenarios.
Expected return and standard deviation : Compute the expected return and standard deviation.
Excellent restaurant management abilities : David's good friend Oliver owns and operates a chain of sandwich shops, which have also thrived due to Oliver's excellent restaurant management abilities.
Describe characteristics of adult learners : Describe characteristics of adult learners. How would the adult learning theory (Andragogy) be considered in the design of your training course materials?

Reviews

Write a Review

Financial Management Questions & Answers

  Initial fixed asset investment and quantity sold

Consider a three-year project with the following information: initial fixed asset investment = $710,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $34.75; variable costs = $22.90; fixed costs = $213,500; ..

  What is the aftertax cost of the company debt

Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. Bond Coupon Rate Price Quote Maturity Face Value 1 8.70 % 105.2 7 years $ 22,000,000 2 7.00 95.2 10 years 42,000,000 3..

  The firms cost of capital

The capital budgeting director of Spar Corporation is evaluating a project which costs $280,000, is expected to last for 10 years and produce after-tax cash flows, including depreciation, of $42,500 per year. As soon as the project ends, we will sell..

  What the influences have been on the strategies

Review your answers to questions 1 to 5 and consider what the influences have been on the strategies followed by google and suggested by you,note your response should consider the complexity and ambiguity of strategy decision making

  Exchange rate of euro in japanese yen

Assume the following information: Exchange rate of Japanese yen in U.S. $ = $.011 Exchange rate of euro in U.S. $ = $1.40 Exchange rate of euro in Japanese yen = 140 yen What will be the yield for an investor who has $1,000,000 available to conduct t..

  Increase in pay after the cost of limit adjust

Assume that you worked for G.E. in cincinnati at an annual salary of $60000. The company transfers you toBoston,MA and gives you a 30% increase in pay after the COLA (cost of limit adjust). Calculate the COLA for the transfer and then increase your s..

  What is the break even level of output

The price of a product is $32 per unit. A firm can produce this good with variable costs of 20 per unit and total fixed costs of $10,000. What is the break even level of output? What is the break even level of output if fixed costs increase to $18,00..

  What is the equivalent rate with continuous compounding

A bank quotes an interest rate of 14% per annum with quarterly compounding. What is the equivalent rate with (a) continuous compounding and (b) annual compounding?

  Assume that the bond was issued at par value

XYZ Corporation has just issued a 20 year, 8% annual coupon bond that is callable after five years at a price of $1,075. The current yield to maturity of bonds with similar risk is 8% annually. Assume that the bond was issued at par value. What is th..

  What cost and or risk does this present to the fdic

Federal deposit insurance used to cover a maximum of $ 40,000 per eligible account. It was later raised to $ 100,000 per account and is now $ 250,000 per eligible account. What cost and/ or risk does this present to the FDIC?

  Provide investors with a perception of least amount of risk

Assume that asymmetric information exists in the financial markets. If a firm's earnings fluctuate every year, everything else equal, which if the dividend policies discussed in CH 13 should be followed to provide investors with a perception of the l..

  Without having to employ no spontaneous external funds

A0*/S0 = 1.6; L0*/S0 = 0.4; profit margin = 0.10; and dividend payout ratio = 0.45, or 45%. Sales last year were $100 million. Assuming that these ratios will remain constant, use the AFN equation to determine the firm’s self-supporting growth rate—i..

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