What is the sales revenue under the worst case scenario

Assignment Help Finance Basics
Reference no: EM13288576

Lester Machinery is analyzing a proposed project. The company expects to sell 2,100 units, give or take 5 percent. The expected variable cost per unit is $260 and the expected fixed costs are $589,000. Cost estimates are considered accurate within a plus or minus 4 percent range. The depreciation expense is $129,000. The sales price is estimated at $750 per unit, plus or minus 2 percent. What is the sales revenue under the worst case scenario?

Answer

$1,686,825

$1,496,250

$1,466,325

$1,543,500

$1,620,675

 

Reference no: EM13288576

Questions Cloud

What is the effective annual percentage cost : Bumpas Enterprises purchases $4,562,500 in goods per year from its sole supplier on terms of 2/15, net 50. If the firm chooses to pay on time but does not take the discount, what is the effective annual percentage cost of its nonfree trade credit?..
What is the firm cash conversion cycle : Desai Inc. has the following data, in thousands. Assuming a 365-day year, what is the firm's cash conversion cycle?
Which filter family would be best suited for application : In addition, the stopbandattenuation is to be at least 65 dB, starting at the Nyquistfrequency of 22.05 kHz. The complexity of the filter shouldbe minimized. Sketch the filter specification (amplitude vs.frequency). Which filter family would you e..
Explain indicate what types of substituents : Some aromatic compounds also undergo nucleophilic substitution, propose a mechanism for this reaction and indicate what types of substituents would be expected to be most reactive
What is the sales revenue under the worst case scenario : The sales price is estimated at $750 per unit, plus or minus 2 percent. What is the sales revenue under the worst case scenario?
Determine the velocity of the puck : at time t = 0 s, a puck is sliding on a horizontal table with a velocity 3.60 m/s, 35.0* above the + axis. What is the velocity of the puck at time t = 1.50 s
How much will her monthly payments be : If she pays off the loan in 36 months, what are her monthly payments? If she makes a down payment of $220, how much will her monthly payments be? Do not round until the final answer. Then, round to the nearest cent.
Determine the magnitude of the impedance in ohms : Determine the magnitude of the impedance in ohms for a 70mH inductor in series with a 15 ohm resistor. The frequency of excitation is 650 rad/s.
How many cups of coffee must it sell to break-even : The Coffee Express has computed its fixed costs to be $0.34 for every cup of coffee it sells given annual sales of 212,000 cups. The sales price is $1.49 per cup while the variable cost per cup is $0.63. How many cups of coffee must it sell to bre..

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the effective annual interest rate

However, it could forgo the discounts, pay on the 90th day, and thereby obtain the needed $500,000 in the form of costly trade credit. What is the effective annual interest rate of this trade credit?

  What is the projects year 0 net cash flow

The project requires an initial investment in net working capital of $285,000 and the fixed asset will have a market value of $225,000 at the end of the project. What is the project's Year 0 net cash flow?

  What is avicorps pre-tax cost of debt

Avicorp has a $11.7 million debt issue outstanding, with a 5.8% coupon rate. The debt has semi-annual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 95% of par value.

  Calculate the cost of internal common equity

The firms marginal tax rate is 34 percent. Calculate the cost of (a) internal common equity and (b) external common equity. Please show your work.

  Determine total factory overhead costs

At a volume of 20,000 direct labor hours, Tirso Company incurs 50,000 in factory overhead costs, including 10,000 in fixed costs. suppose that this activity is within the relevant range,

  Which component has the most significance in the total

What are the components of WACC? Which component has the most significance in the total? Over which component does management have the greatest influence?

  Determining foreign exchange

Last year, the French marketing subsidiary of International Pharmaceuticals Corporation, (IPC) a New Jersey based drug manufacturer, earned 700,000 euros. This year, partly due to a weaker U.S. dollar, the French subsidiary will earn 900,000 euros..

  General inflation level affect the fed''s monetary policy

Explain how could news of a substantial increase in the general inflation level affect the Fed's monetary policy and thereby affect home prices?

  How does your decision influence the ultimate amount of cash

It is a common fact that many lottery winners are "broke" sooner than later. If you won a $1,000,000 lottery, would you want to collect the lump sum winnings today or receive the monies over time? How does your decision influence the ultimate amount ..

  Which of the above projects should the company take on

The company has the following independent investment projects available: Project Initial Outlay IRR 1 $100,0000 10% 2 $10,000 8.5% 3 $50,000 12.5%

  Find what will the total cost

Find what will the total cost be if 4,800 units are produced - firm can increase production by 1,000 units without increasing its fixed costs.

  Fixed exchange rate and floating rate systems

Explain the major differences in the fixed exchange rate and floating rate systems. You need to compare the systems in terms of their impacts on the effectiveness of monetary and fiscal policies

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