What is the target variable cost per mouse

Assignment Help Financial Management
Reference no: EM13765425

A company believes it can sell 5,600,000 of its proposed new optical mouse at a price of $10.00 each. There will be $8,000,000 in fixed costs associated with the mouse. If the company desires to make a profit $2,000,000 on the mouse, what is the target variable cost per mouse?

Reference no: EM13765425

Questions Cloud

What are the net cash flows of the project for the years : Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,310,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life.
Test the hypothesis that the average age of cars : The Department of Transportation would like to test the hypothesis that the average age of cars on the road is less than 10 years. A random sample of 50 cars had an average age of 9.5 years. It is believed that the population standard deviation fo..
Rise to a triangular arbitrage opportunity : What is IFE? If the expected US one-year interest rate is 0.25%, expected UK one-year interest rate is 0.5%, use IFE to predict the expected pound spot rate in dollar one year from now.
Telecommunications-networking routing algorithms : Complex routing algorithms are used to maintain routing tables. What algorithms are used, and how do they work? What are the advantages and disadvantages of each?
What is the target variable cost per mouse : A company believes it can sell 5,600,000 of its proposed new optical mouse at a price of $10.00 each. There will be $8,000,000 in fixed costs associated with the mouse. If the company desires to make a profit $2,000,000 on the mouse, what is the targ..
Construct one original descriptive argument : Descriptions "describe"-they depict the "what is" of a statement. Prescriptions "prescribe"-they express the "what ought to be" of a statement. Construct one original descriptive argument and one original prescriptive argument for the topic you sel..
Types of risk that come into play during the audit process : There are many types of risk that come into play during the audit process. Describe the following four main risks:
Bond makes annual payments and matures four years : You purchased one EAW, Inc. 6 percent coupon bond one year ago for $1,020. The bond makes annual payments and matures four years from now. You sell the bond today when the required return is 5 percent. The inflation rate was 2.8 percent over the past..
Role in the auditing process and profession : Ethics plays a major role in the auditing process and profession. Discuss the ethical theories that can be utilized to deal with issues that can arise during the audit process. Address the following topics:

Reviews

Write a Review

Financial Management Questions & Answers

  Cash flows-what discount rate is being used

The present value of the following cash flows is known to be $6,939.91; $500 today, $2,000 in 1 year, and $5,000 in 2 years. What discount rate is being used?

  Shares outstanding-what is the price per share

Cool Shoes (CS) had 2014 sales of $518 million. You expect sales to grow at 9% next year(2015), but, decline by 1% per year after until you settle to a long -run growth rate of 4%. You expect EBIT to be 9% of sales, increases in net working capital r..

  Capital structures-equity plan and levered plan

Rise Against Corporation is comparing two different capital structures: an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 200,000 shares of stock outstanding. Under Plan II, there would be 150,000 shares o..

  Bond using both semi-annual and annual discounting

What is the value of the bond using both semi-annual and annual discounting

  Assume that amazon has a stock-option plan for top

assume that amazon has a stock-option plan for top management. each stock option represents the right to purchase a

  Hobbit manufacturing-increase in total market value for firm

Operating income (EBIT) $600 million, Interest expense $0, Tax rate 35%, Debt $0, Cost of equity 7%, WACC 7%. The company has no growth opportunities (g = 0), so the company pays out all of its earnings as dividends. Hobbit can borrow money at a pre-..

  Both bonds make semi-annual payments

Filer manufacturing has 9.1 million shares of common stock outstanding. The current share price is $61, and the book value per share is $3. Filer manufacturing also has two bond issues outstanding. The first bond issue has a face value of $71.6 milli..

  What is the preferred stock price if required rate of return

The growth rate for the firm's common stock is 7%. The firm's preferred stock is paying an annual dividend of $5. What is the preferred stock price if the required rate of return is 8%?

  Were the same business drivers discussed

Present a brief side-by-side comparison of MacDonald’s MD&A of 2013 to that of 2012. Were the same business drivers discussed? Were they assigned the same importance by management? Discuss any variations you observed, and the possible reasons for man..

  What is the expected return on the mutual fund

Consider the following capital market: a risk-free asset yielding 0.75% per year and a mutual fund consisting of 70% stocks and 30% bonds. The expected return on stocks is 10.75% per year and the expected return on bonds is 3.25% per year. The standa..

  Difference between periodic and perpetual inventory tracking

What is the difference between periodic and perpetual inventory tracking? Are there cases where a health care organization could use both methods of inventory costing for different types of inventory, and if so, please explain why they would do this.

  What home insurance coverage amount would you recommend

Michelle and Ken Dunn, both in their mid-20s, have been married for 4 years and have two preschool-age children. Ken has an accounting degree and is employed as a cost accountant at an annual salary of $62,000. They’re now renting a duplex but wish t..

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