What is the accounting operating profit break-even point

Assignment Help Financial Management
Reference no: EM131067158

Mexmagnet is introducing a new game system that promises to never become outdated. Mexmagnet will sell the systems for $225, and it will accrue $150 in variable costs to produce. If cash fixed expenses are $30 million per year and the depreciation and amortization expenses are $7.5 million per year, then what is the accounting operating profit break-even point for Mexmagnet?

Reference no: EM131067158

Questions Cloud

An asset has had an arithmetic return : An asset has had an arithmetic return of 10.9 percent and a geometric return of 8.9 percent over the last 88 years. What return would you estimate for this asset over the next 8 years? 22 years? 29 years? Enter as percentages.
Risk-free interest rate is annum with continuous compounding : A stock price is currently $50. Over each of the next two six-month periods it is expected to go up by 15% or down by 10%. The risk-free interest rate is 5% per annum with continuous compounding. What is the value of a one year European put option wi..
Vertically common size apples income statements : Your Activity responses should be both grammatically and mechanically correct and formatted in the same fashion as the Adionty itself. If there is a Part A.
Calculate the number of speed boats : Mickey’s Boats will produce a new line of speed boats. It has a choice of larger production facility with a less laborers or smaller production facility with more laborers. Calculate the number of speed boats for which the accounting operating profit..
What is the accounting operating profit break-even point : Mexmagnet is introducing a new game system that promises to never become outdated. Mexmagnet will sell the systems for $225, and it will accrue $150 in variable costs to produce. If cash fixed expenses are $30 million per year and the depreciation an..
Degree of accounting operating leverage equal : Metkia Inc. had a degree of accounting operating leverage equal to 1.841 during the most recent period. If the firm's EBITDA was $4,800 and depreciation and amortization was equal to$600, then what was Metkia's fixed cash expenses during the same per..
Analyzing the individual input distributions for the project : Ottomony has analyzed a new type of all-in-one retail center where the NPV of the project has an expected value with a distribution that yields a standard deviation of $25 million. Ottomony came to this conclusion by analyzing the individual input di..
Variable cost per unit of production on net present value : If a firm wanted to find the effect of a change in the variable cost per unit of production on the net present value of a project, then the firm might perform:
Statements is true of the economic break-even point : Which of the following statements is true of the economic break-even point?

Reviews

Write a Review

Financial Management Questions & Answers

  Optimal combination of projects given capital constraint

Assume that your capital is constrained, so that you only have $500,000 available to invest in projects. If you invest in the optimal combination of projects given your capital constraint, then the total net present value (NPV) for all the projects y..

  Consistent with efficient inventory management

Which of the following statements is most consistent with efficient inventory management?

  About the cost of trade credit

A large retailer obtains merchandise under the credit terms of 1/10, net 35, but routinely takes 70 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's e..

  What is the estimated annual operating cash flow

A company is considering a 5-year project to open a new product line. A new machine with an installed cost of $110,000 would be required to manufacture their new product, which is estimated to produce sales of $80,000 in new revenues each year. If st..

  Calculate the pv of the cash flows and then duration

Guess the duration of the following investment. Is it less than two years, two to three years, three to four years, or greater than four years? After your guess, use a discount rate of 6 percent and calculate the PV of the cash flows and then duratio..

  Summarize the costs to the practice of owning system

Great Docs, a three-physician practice with two office sites, is considering whether to buy or lease a new computer system. Currently they own a low-tech (and low-cost) information system. Summarize the costs to the practice of owning a system (per D..

  Dividend is expected to grow at a rate

A stock is currently priced at $27.90. Its dividend is expected to grow at a rate of 6.10% per year indefinitely. The stock's required return is 8.30%. The stock's predicted price 3 years from now, P3, should be $________.

  Free cash flow has grown rapidly

Phoenix Corp. faltered in the recent recession but is recovering. Free cash flow has grown rapidly. Forecasts made at the beginning of 2016 are as follows: ($ millions) 2017 2018 2019 2020 2021 Net income 1.0 2.0 3.2 3.7 4.0 Investment 1.0 1.0 1.2 1...

  At what call price will you get a margin call

You entered into future contract to buy €62,500 at $1.20/€ yesterday. Your initial margin was $4,200. Your maintenance is $2,500 9meaning that yur broker leaves you alone until account balance falls to $2,500) At what call price will you get a margin..

  What does continuous compounding mean

As you increase (decrease) the length of time involved, what happens to the present value of an annuity? Explain why. What happens to the future value of an annuity if you increase (decrease) the interest rate? Explain why. What does continuous compo..

  In developing your export business plan

Select a product of which you will export to a foreign country. After your product is chosen, decide on a foreign country to which you will export. In developing your Export Business Plan,

  Which security is riskier

Stock A has an expected return of 7%, a standard deviation of expected returns of 35%, a coefficient with the market of -0.3, and a beta coefficient of -0.5. Stock B has an expected return of 12%, a standard deviation of return of 10%, a 0.7 correlat..

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