What is the financial break-even point

Assignment Help Finance Basics
Reference no: EM132538594

Given the following information, what is the financial break-even point? Initial investment = $390,000; variable cost = $120 per unit; fixed cost = $65,000; price = $150; life = six years; required return = 10%; depreciation = $45,000. Ignore taxes.

Reference no: EM132538594

Questions Cloud

Expected percentage change in operating cash flow : If the quantity being produced increases from 96 units to 100 units, what is the expected percentage change in operating cash flow?
What is the degree of operating leverage : What is the degree of operating leverage? Sales = 100,000 units; price = $50 per unit; variable cost = $30 per unit; fixed costs = $1,250,000
Prepare equity section of statement of financial position : ABC Company has two classes of share,Prepare the equity section of the statement of financial position for Paris Company at December 31, 2019.
Find the accounting break-even point : Find the accounting break-even point given the following information: Price = $50 per unit; variable cost = $35 per unit; fixed costs = $50,000
What is the financial break-even point : Given the following information, what is the financial break-even point? Initial investment = $390,000; variable cost = $120 per unit; fixed cost = $65,000;
Leadership characteristics and behaviors : Describe how leaders are able to influence and empower team members; identify important leadership characteristics and behaviors;
What would be contained in an itunes backup : Let us assume you are able to take an backup of the iPhone using iTunes. What would be contained in an iTunes backup and how might that be valuable for you?
Calculating total prices : Calculating total Prices. Suppose a bond has 20 years to maturity and a coupon rate of 8 percent. The bond's yield to maturity is 7 percent. What is the price?
Prepare an income statement for cathy chen : Prepare an income statement for Cathy Chen, CPA, for the year ended December 31, 2003. Evaluate her 2003 financial performance.

Reviews

Write a Review

Finance Basics Questions & Answers

  Company weighted average cost of capital

The cost of equity is 12% and the cost of debt is 7%. The tax rate is 30%. What is the company's weighted average cost of capital (WACC)?

  What are its intrinsic values at stock prices of 45 and 38

a stock price is currently 42. its stock price will be either 45 or 38 one year from now. the risk-free rate is 5. a

  What is the sustainable rate of growth

The Green Giant has a 6 percent profit margin and a 60 percent dividend payout ratio. The total asset turnover is 1.3 and the equity multiplier is 1.6. What is the sustainable rate of growth?

  What is the present value of john savings

John West is 40 years old. He is a young executive and his salary is $1 mil a year. His income is expected to grow at 10% for every year he works. John wants to retire at 55 and he wants to save 20% of his salary every year. John can invest at 7%.

  Determine the estimated beta coefficient

Determine the estimated beta coefficient of your corporation? What does this beta mean in terms of your choice to include this company in your overall portfolio?

  Calculate the degree of operating and combined leverage

An analytical income statement for Detroit Heat Treating is given below. It is based on an output (sales) level of 40,000 units.

  What drives growth in residual operating income

Explain what is meant by a financing risk premium in the equity cost of capital. When will a financing risk premium be negative?

  Multiple choice questionsnbspusing dividend discount

multiple choice questionsnbspusing dividend discount model.1.nbsp the xyz company whose common stock is currently

  Determine jane total cash inflows and cash outflows

It is typical for Jane to plan, monitor, and assess her financial position using cash flows over a given period, typically a month. Jane has a savings account, and her bank loans money at 6% per year while it offers short-term investment rates of ..

  Estimate the exit velocity from the showerhead jets

A portion of the flow is diverted through the showerhead, which contains 100 holes of 1-mm diameter. Assuming uniform shower flow, estimate the exit velocity from the showerhead jets.

  Computing the average return and standard deviation

Computing the average return and standard deviation and you are considering a new product launch

  Primary factors of advertising in a free economy

What are the Primary factors of advertising in a free economy? Give an example of each,

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