What is target variable cost per mouse

Assignment Help Financial Management
Reference no: EM131356954

A company believes it can sell 5,600,000 of its proposed new optical mouse at a price of $10.00 each. There will be $8,000,000 in fixed costs associated with the mouse. If the company desires to make a profit $2,000,000 on the mouse, what is the target variable cost per mouse?

Reference no: EM131356954

Questions Cloud

Create the structure for the records in the customer file : Create the "structure" for the records in the customer file. Use given Figure as a general guide to the data elements to be included in the customer records. However, observe the following specific requirements:
How the selected company can establish hrm strategies : Determine which HR job positions you would prefer and explain why. Analyze how the selected company can establish HRM strategies to improve competitive advantages.
What is the throughput time of the new work cell : The Pullman Mfg., Inc., three-station work cell illustrated in Figure has two machines at station 1 in parallel. What is the throughput time of the new work cell? What is the bottleneck time of the new work cell
What must the risk-free rate be : A stock has an expected return of 15.9 percent, a beta of 1.70, and the expected return on the market is 10.10 percent. What must the risk-free rate be?
What is target variable cost per mouse : A company believes it can sell 5,600,000 of its proposed new optical mouse at a price of $10.00 each. There will be $8,000,000 in fixed costs associated with the mouse. If the company desires to make a profit $2,000,000 on the mouse, what is the targ..
Develop a leadership philosophy statement : For Part 1, select a relevant and topical leadership issue from current news media that revolves around ethics and ethical decision making. Develop a leadership philosophy statement as an appendix to your evaluation in Part 1.
What are the major concerns for corporations in developing : Julie Rice works for a computer company where she has been employed for four years as a lead supervisor. During the past two years Julie's mother has needed frequent medical attention for her diabetes. Being an only child, Julie has helped her mot..
The sustainable growth rate for the company : Coheed, Inc., had equity of $160,000 at the beginning of the year. At the end of the year, the company had total assets of $224,000. During the year the company sold no new equity. Net income for the year was $72,000 and dividends were $46,080. The s..
A firm credit policy consists of which of the items : A firm's credit policy consists of which of the following items?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the estimated residual value of the land under

An appraiser is estimating the highest and best use of a vacant site. One of the alternatives being considered as a use for the site is a building that would cost $1 million to construct the improvements. Under this use, NOI is estimated to be $120,0..

  Evaluate the new machinery system profitability

A farmer is considering replacing a labor-intensive machine system with a more capital-intensive one. Adopting the new system is estimated to increase machinery operating expenses by about dollar 21,000 per year and to replace one hired laborer, whos..

  A trader has a put option contract to sell

A trader has a put option contract to sell 100 shares of stock for a strike price of $60. What's the effect on the terms of the contract if (a) a $2 cash dividend (b) a 5-for-2 stock split (c) a 5% stock dividend is being paid?

  Short-term loans would decrease currect liabilitie-affect

Why is the correct answer A? Wouldn't writing a $30,000 check decrease assets and paying off an account payable decrease current liabilities and therefore cancel each other out..? HELP :) Similarly confused on this probelm. I thought paying off the s..

  What is the present value of the interest tax shield

Suppose Arnell pays interest of 9% per year on its debt. What is its annual interest tax shield?-  What is the present value of the interest tax shield, assuming its risk is the same as the loan?

  The fixed asset will be depreciated straight-line to zero

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.79 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be w..

  The projects should not be accepted if analyzed properly

AB Corporation has two divisions, office paper and landscaping. The CFO is currently using the company’s overall WACC as the hurdle rate for all projects. AB has a company beta of 1.16 while the office paper division’s beta is 0.87 and the landscapin..

  Purchase a 10-year certificate of deposit

Suppose you have $2,000 and plan to purchase a 10-year certificate of deposit (CD) that pays 7% interest, compounded annually. How much will you have when the CD matures?

  Would you rather earn a nominal return

Assume inflation is .21% per month. Would you rather earn a nominal return of .71% per month, compounded monthly, or a real return of 6.53% APR compounded annually?

  Negative growth stockswinton mining has seen its business

negative growth stockswinton mining has seen its business slowly wind down. it recently paid a dividend of 1.80 per

  The discounted payback rule may cause

The discounted payback rule may cause:

  What will be the firm operating cycle

Suppose that Tucker Industries has annual sales of $5.30 million, cost of goods sold of $2.81 million, average inventories of $1,140,000, and average accounts receivable of $530,000. Assuming that all of Tucker's sales are on credit, what will be the..

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