What is the estimated production level

Assignment Help Financial Management

Reference no: EM131082769

Kaufman Industries has just completed its sales forecasts and its marketing department estimates that the company will sell 44,400 units during the upcoming year. In the past, management has maintained inventories of finished goods at approximately 3 months' sales. However, the estimated inventory at the start of the year of the budget period is only 13,000 units. Sales occur evenly throughout the year. What is the estimated production level (units) for the first month of the upcoming budget year?

Reference no: EM131082769

Questions Cloud

Project will produce an operating cash flow : A project will produce an operating cash flow of $7,300 a year for three years. The initial investment for fixed assets will be $11,600, which will be depreciated straight-line to zero over the asset’s 4-year life. The fixed assets can be sold for an..

Dividend policy is relevant : Dividend policy is relevant. Shareholders are unable to personally adjust the dividend policy set by the firm. According to Miller and Modigliani, a firm should alter its investment policy whenever a change is made in its dividend policy.

Spot exchange rate-dollar gain or loss in inventory value : Suppose 1 year ago, Miller Company had inventory in Britain valued at 2 million Swiss francs. The exchange rate for dollars to Swiss francs was 1 franc = 1.14 dollars. Today, the exchange rate is 1 Swiss franc = 1.06 US dollars. What is the US dollar..

Equipment is depreciated on seven-year macrs schedule : J. Smythe, Inc., manufactures fine furniture. The company is deciding whether to introduce a new mahogany dining room table set. The set will sell for $6,300, including a set of eight chairs. The equipment is depreciated on a seven-year MACRS schedul..

What is the estimated production level : Kaufman Industries has just completed its sales forecasts and its marketing department estimates that the company will sell 44,400 units during the upcoming year. In the past, management has maintained inventories of finished goods at approximately 3..

Manufacturers of fine zithers : You have been hired as a consultant for Pristine Urban-Tech Zither, Inc. (PUTZ), manufacturers of fine zithers. The market for zithers is growing quickly. Assume the company has other profitable projects. MACRS schedule. What is the NPV of the projec..

Concept to encompass surf lifestyle for the home : With the growing popularity of casual surf print clothing, two recent MBA graduates decided to broaden this casual surf concept to encompass a “surf lifestyle for the home.” With limited capital, they decided to focus on surf print table and floor la..

Which machine would be preferable investment : A restaurant operator wishes to choose between two alternative roll-in storage units. Machine A will cost $9,000 and have a trade-in value at the end of its five-year life of $1,500. Machine B will cost $8,500 and at the end of its five-year life wil..

Common stock dividend to grow at constant : AWM Corporation expects its common stock dividend to grow at a constant 5 percent for the foreseeable future. The company recently paid a $4.00 dividend. If the required rate of return on the company's stock is 11 percent, what is the value (price) o..

User Account

All Pages