What is the breakeven price

Assignment Help Finance Basics
Reference no: EM132498079

Pharmaceuticals makes a number of generic versions of drugs. It produces the generic version of Xyzal (anti-histamine), a branded drug which patent expired. MethRUS invested $100,000 to obtain FDA approval (not refundable, one-time fee) and $50,000 to certify one of its production lines for its production (one-time fee, not-refundable). Production of the drug will cost $1,000,000 in total fixed cost. In addition, per unit cost (MC) of the pill is $0.10.

Q: If forecasted sales are 10 million tablets, what is the breakeven price? Show your work

Q: If the generic Xyzal sells for $0.25 per pill, should MethRUS give up or discontinue selling this product? Explain. Hint: compare this price to the breakeven price.

Reference no: EM132498079

Questions Cloud

Prepare the revaluation account and capital accounts : Prepare the Revaluation account, Capital accounts, Bank account and the Balance Sheet of the reconstituted partnership and Prepare Profit and Loss
Discuss with the aid of a demand and supply diagram : Discuss with the aid of a demand and supply diagram the effects on consumers and producers when the government produces an indirect tax on a good.
Policy of increasing income for farmers : If government wants to follow a policy of increasing income for farmers, what type of programs will the government enact? Explain.
Calculate the amount of goodwill : Calculate the amount of goodwill that was included in the purchase of the identifiable net assets of Midgard Ltd. why a company may have goodwill.
What is the breakeven price : If forecasted sales are 10 million tablets, what is the breakeven price? Show your work
Eliminate the maximum payroll tax cutoff : Eliminate the maximum payroll tax cutoff (currently at $128,400) and extend this tax to all earnings from work.
What is the total shareholder equity vaughan company : What is the Total Shareholder Equity Vaughan Company will show on its balance sheet at the end of their first year? solove step by step
Change the character of the area : Supporters of the plan counter that this will only happen if consumers prefer the supermarket. Which side are you on?
MIS602 Data Modelling and Database Design Assignment : MIS602 Data Modelling and Database Design Assignment Help and Solution - Laureate International Universities, Australia. Title - Reflective Research Report

Reviews

Write a Review

Finance Basics Questions & Answers

  Computing the standard deviation for treasury bills

Computing the standard deviation for treasury bills and Calculate the standard deviation of Treasury bill returns and inflation over this period

  Calculate the actual return

You purchased 1,000 shares of stock for $23 per share exactly one year ago. During the year, the stock paid a $.50 dividend per share and the current stock price is $20 per share. The inflation rate the last year was 2%.

  Take place to transfer of capital

How many ways take place to Transfer of capital? Can you please Elaborate on this and the difference between each way or method.

  What rate of growth must be expected for sidman

Sidman's products' stock is currently selling for $60 per share. The firm is expected to earn $5.40 per share this year and to pay a year-end dividend of $3.60.

  Would you recommend that alison nelson franchise the chocola

Would you recommend that Alison Nelson franchise The Chocolate Bar within the United States? Explain your answer.

  What is the book value of klingon total assets

Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $4.5 million. The machinery can be sold to the Romulans today for $6.7 million.

  Healthcare center in a major american city

You have just opened a healthcare center in a major American city. You have a handful of employees and your main business is to provide

  Calculate the npv of the project

Calculate the NPV of the project. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

  What is the after-tax salvage value

If the lathe can be sold for $4,300 at the end of year 3, what is the after-tax salvage value?

  What is the book value per share

A firm's price to earnings ratio is 8 and its market to book ratio is 2. If its earnings per share are $4.00, what is the book value per share?

  Determine whether interest rate parity holds

Assuming continuous compounding, determine whether interest rate parity holds and, if not, suggest a strategy.

  Represents a financial liability or an equity instrument

The entity for which it represents a financial asset, and the other entity for which it represents a financial liability or an equity instrument;

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