What is the variable cost involved in making handkerchief

Assignment Help Operation Management

Reference no: EM13856805

A manufacturer of fancy handkerchiefs invests $1 million in a new facility, and claims that he can obtain 8% return on this investment within one year by selling 90,000 handkerchiefs per month at a $4 price per handkerchief. Under this scenario:

a. What is the unit margin?

b. What is the variable cost involved in making a handkerchief?

Reference no: EM13856805

Questions Cloud

Two strings and prints the two strings : Write a method that takes in two strings and prints the two strings in alphabetical order. Assume the strings are lowercase. End with newline.

National security-accurate tax collection and demographics : Governments collect massive amounts of data on individuals and organizations and use it for a variety of purposes: national security, accurate tax collection, demographics, international geopolitical strategic analysis, etc. In the 1930s and 1940s th..

Leaders use power and influence to empower their employees : Leaders use power and influence to empower their employees. In Max DePree's (1987) book, Leadership is an Art, there is an example of how the leaders empowered their employees to make decisions regardless of the consequences. DePree is the chairperso..

What kind of amenities are provided at the facility? : What kind of amenities are provided at the facility?

What is the variable cost involved in making handkerchief : A manufacturer of fancy handkerchiefs invests $1 million in a new facility, and claims that he can obtain 8% return on this investment within one year by selling 90,000 handkerchiefs per month at a $4 price per handkerchief. Under this scenario: What..

Responsibilities healthcare manager applies to fraud-abuse : Describe your responsibilities as a healthcare manager as it applies to fraud and abuse. What if you were a unit manager? Department manager? A member of the executive team?

Whole foods in order to reach her target profit : Lucy supplies Whole Foods with small jars of incense-fragranced shea butter at $8 each, with a variable cost of $3, and that has a retail price at Whole Foods of $12. She invested $75,000 in fixed costs and aims to earn a profit of $150,000 in one ye..

Highly structured progression of the superfund process? : Which sequence would correctly represent the highly structured progression of the Superfund process?

What is the market value of kurzs existing assets : What is the market value of Kurzs existing assets and What is the new price per share immediately following this announcement, but before the shares are issued or the debt is retired?

User Account

All Pages