Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
After spending $600,000 for R&D, chemists at Cats Gone Wild have developed a new cat food called WOW-MEOW. The food will be packaged in an 8-ounce can and will be introduced to the cat food market, which is estimated to be 42 million 8-ounce cans nationally. WOW-MEOW will be distributed in major metropolitan areas that account for 65% of the US cat food volume. The food will be promoted via newspapers and will offer a coupon for $0.40 off for the first can purchased—and the retailer will receive the regular margin and be reimbursed for redeemed coupons by Cats Gone Wild. Past experience indicates that for every 5 cans sold during the introductory year, one coupon will be redeemed. The cost for the newspaper advertising campaign will be $500,000 in addition to coupon redemption reimbursements. Other fixed overhead costs are expected to be $180,000 per year. Management has decided that the suggested retail price for the 8-ounce can to the consumer will be $1.00. The only unit variable costs for the product are $0.36 for materials and $0.12 for labor. The company intends to give retailers a margin of 20 percent off the suggested retail price and wholesalers a margin of 10 percent of the retailers’ cost of the item.
At what price will Cats Gone Wild be selling WOW-MEOW to wholesalers?
What is the contribution per unit (8-ounce can)?
What is the breakeven unit volume in the first year?
What is the first year breakeven share of market?
A Treasury bill has a bid yield of 2.13% and an ask yield of 2.09%. The bill matures in 209 days. Assume a face value of $1,000. What is the least you could pay to acquire a bill?
Calculate Expected Cash Flows, NPV, and Present Value for opening a UPS Store Franchise. Specifically calculate the following: Expected cash flows given forecasted profit. Present value and net present value
Riverton Mining plans to purchase or lease $220,000 worth of excavation equipment. If purchased, the equipment will be depreciated on a straight-line basis over five years, after which it will be worthless. If leased, the annual lease payments will b..
A stock has an expected return of 12.2 percent, the risk-free rate is 6 percent, and the market risk premium is 10 percent. What must the beta of this stock be?
Winnebagel Corp. currently sells 24,000 motor homes per year at $62,000 each, and 9,000 luxury motor coaches per year at $99,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 19,000 of these..
A firm has 500,000 shares of stock outstanding with a par value of $1 per share and debt outstanding with a par value of $1,000,000. The stock is selling for $10 per share, and the debt is selling at a discount (90% of par). If the firm were financed..
Gateway Communications is considering a project with an initial fixed asset cost of $2.872 million which will be depreciated straight-line to a zero book value over the 10-year life of the project. At the end of the project the equipment will be sold..
Based on knowledge rate these ratios in terms of significance for: almost sick firms striving to fight off bankruptcy.
An investor buys a call at a price of $4.80 with an exercise price of $43. At what stock price will the investor break even on the purchase of the call?
The stock of Jenkins Corporation, a major steel producer, is currently selling for $50 per share. The book value per share is $125. In contrast, the price per share of Data quests stock is $40, compared to a book value per share of $10. Dataquest, a ..
A wealthy benefactor just donated some money to a local college. The gift was established to provide scholarships for worthy students. The first scholarship will be granted one year from now for a total of 35,000. Annually thereafter, the scholarship..
In a slow year, Deutsche Burgers will produce 3.5 million hamburgers at a total cost of $4.6 million. In a good year, it can produce 4.3 million hamburgers at a total cost of $4.9 million. What are the fixed costs of hamburger production? What is the..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd