What is the minimum number of units the firm should pre-sell

Reference no: EM13290763

Spencer Tools would like to offer a special product to its best customers. However, the firm wants to limit its maximum potential loss on this product to the firm's initial investment in the project. The fixed costs are estimated at $32,000, the depreciation expense is $18,000, and the contribution margin per unit is $12.50. What is the minimum number of units the firm should pre-sell to ensure its potential loss does not exceed the desired level? need to see all work

1,220 units

1,680 units

2,215 units

2,560 units

2,750 units

Reference no: EM13290763

Questions Cloud

What is your new terminal velocity with the coat : You are a secret agent and find that you have been pushed out of an airplane without a parachute. what is your new terminal velocity with the coat

Determine the expense ratio : The net asset value of a mutual fund is $56.00. It has $1.77 in expenses per share. Determine the expense ratio.

How much mass must be attached to the bottom pulley : When a large bone such as the femur is broken, the two pieces are often pulled out of alignment by the complicated combination of tension, how much mass m must be attached to the bottom pulley

Determine the net asset value : Mutual fund has $50,000,000 in assets & $2,500,000 in liabilities. There are 10,000,000 shares outstanding. Determine the net asset value.

What is the minimum number of units the firm should pre-sell : What is the minimum number of units the firm should pre-sell to ensure its potential loss does not exceed the desired level? need to see all work.

How should the firm determine its cost of equity : The firm maintains a debt-equity ratio of 0.40 and retains all profits to fund the firm's rapid growth. How should the firm determine its cost of equity?

Explain an ammonia/ammonium buffer solution contains : An ammonia/ammonium buffer solution contains 0.22M NH3 and 0.83M NH4^+. The Kb value of ammonia is 1.8*10^-5. Calculate the of this buffer.

Explain the same cuvette has an absorbance : measured in a 1.00-cm pathlength cuvette, has an absorbance of 0.321 while the reagent blank in the same cuvette has an absorbance of 0.014. What would be the absorbance reading of these two solutions if measured in a cuvette with 5.00 cm pathleng..

Which do you think is better give reasons and examples to : Some people prefer to take a position in a company and work for the company. Other people think it is better to go into business for themselves.

User Account

All Pages