What is the firms break-even sales level

Assignment Help Financial Management
Reference no: EM131067690

A firm has operating profits of $15,000 on unit sales of 10,000 units. Fixed costs are $30,000; each unit sells for $11.50 and has variable cost of $7.00. What is the firm's break-even sales level?

Reference no: EM131067690

Questions Cloud

Discuss the businesss performance : Discuss the business performance and justify what you think the business should focus on in the future - business the class has set up and been running.
Assignment-real property : According to Jean Murray (2015) Real property (Links to an external site.) is property that includes land and buildings, and anything affixed to the land. For a business, real property would include warehouses, factories, offices, and other buildi..
Zero coupon bond with face value : A zero coupon bond with a face value of $1,000 is issued with an initial price of $455.50. The bond matures in 18 years. What is the implicit interest, in dollars, for the first year of the bond's life? Use semiannual compounding.
Management accountant to the activities of the slt : Prepare the report for the CEO identifying the contribution that you could make as a management accountant to the activities of the SLT.
What is the firms break-even sales level : A firm has operating profits of $15,000 on unit sales of 10,000 units. Fixed costs are $30,000; each unit sells for $11.50 and has variable cost of $7.00. What is the firm's break-even sales level?
Senior management accountant for a large organisation : You are recently appointed as the senior management accountant for a large organisation. In your first meeting with the CEO you suggest that you should be included in the strategic leadership team (SLT).
The board of directors of the automobile manufacturer : Scenario: The Board of Directors of the automobile manufacturer have asked you to prepare a Business case that recommends a procurement plan based on the Assessment 1: Case study - Supplier evaluation.
What is inter-group conflicts : What is inter-Group Conflicts. Explain some of the sources of Inter-Group Conflicts and also the stages Inter-Group Conflicts takes.
Write a press release for the union that summarises : Your starting point is a December 2011 article in Workplace Express about Jupiter's 2011 bargaining process https://www.workplaceexpress.com.au/nl06_news_print.php?selkey=47062

Reviews

Write a Review

Financial Management Questions & Answers

  Find the arbitrage-free forward price of corn

The spot price of corn is $2.24 per bushel. The risk-free interest rate is 5% nominal annual compounded every two months. The storage costs for corn are $0.03 per month per bushel, paid at the end of each month. Find the arbitrage-free forward price ..

  Cost of trade credit and bank loan

Lamar Lumber buys $8 million of materials (net of discounts) on terms of 3/5, net 70; and it currently pays after 5 days and takes discounts. Lamar plans to expand, which will require additional financing. Assume 365 days in year for your calculation..

  Financial management-impact the pricing of options

Using the CSU Online Library, research the variables that impact the pricing of options. Focus your energy on comparing the attributes of the two widely accepted models used for option pricing:

  Assess short-term liquidity by looking at firm current ratio

Assume XYZ Corp. had a current ratio of 12.5 You are the CFO of XYZ Corp. Would you argue the high current ratio is good or bad? Why? Ratios provide us with the ability to quickly assess a particular item. We can quickly assess short-term liquidity b..

  The theory of purchasing power parity

The theory of purchasing power parity

  What was the firms operating profit

Lurch Fuel Pumps, Inc. had sales of $2,500,000 and cost of goods sold of $1,710,000. Selling and administrative expenses represented 10 percent of sales. Depreciation was 6 percent of the total assets of $4,680,000. What was the firm’s operating prof..

  New clubs will also require increase in net working capital

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $760 per set and have a variable cost of $320 per set. The company has spent $126,000 for a marketing study that determined the company will sell 24,000 sets per year ..

  Your firm has a line of credit with your local bank

Your firm has a line of credit with your local bank for $50,000. The loan agreement calls for interest of 9% with a 5% compensating balance requirement which is based on the total amount borrowed. What is the effective interest rate if you need $42,7..

  Considering the replacement of an existing machine.

Norman Industrial Company (NIC) is considering the replacement of an existing machine. The new machine costs $2.3 million and requires installation costs of $250,000. The existing machine can be sold currently for $1,250,000 before taxes. Calculate t..

  Amortized over its useful life or over statuatory period

Which of the following items generally cannot be deducted or amortized over its useful life or over a statuatory period? Bill Thomas a sole proprietor incurred the following business expenses during the year. All are deductible except: Start up expen..

  About the account balances

A firm has the following account balances. Which one of the following statements is correct concerning those balances? Accounts Receivable is a $900 source of cash. Long-term debt is a $5,800 source of cash.

  Compute kelsons short-run supply curve for product

What does this function imply about the effect of the law of the law of diminishing returns on Kelson's short-run cost function and calculate the marginal cost of production at 1500, 2000, and 3500 units of output.

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