What sales volume would be required in order to meet

Assignment Help Finance Basics

Reference no: EM13304804

A group of venture investors is considering putting money into Lemma Books, which wants to produce a new reader for electronic books. The variable cost per unit is estimated at $250, the sales price would be set at twice the VC/unit, or $500, and fixed costs are estimated at $675,000. The investors will put up the funds if the project is likely to have an operating income of $500,000 or more. What sales volume would be required in order to meet the minimum profit goal? (Hint: Use the breakeven formula, but include the required profit in the numerator.)

a)5,781
b)4,700
c)5,452
d)4,841
e)3,854

Reference no: EM13304804

Questions Cloud

What are your monthly car payments : You are considering buying a new car. the sticker price is $15,000 and you have $2,000 to put toward a down payment. If you can negotiate a nominal annual interest rate of 10% and you wish to pay for the car over a 5 year period, what are your mon..

Determine what is the minimum standard size that is needed : a mountain water reservoir in a national park is to provide water at a flow rate of Q= 200 gpm and a minimum pressure of 40 psig in the lodge of the valley 200 ft below the reservoir.

What is elevation of b by neglecting curvature and reaction : The line of sight of a level falls at a rate if 0.122ft/ 100 ft when the level bubble is centered. A backsight of 4.782 is taken on point A, which is at 75 ft from the level. the elevation of a is 425.238 ft.

Minimize the accessibility of classes and members : Why is this correct/when is this the right idea and Minimize the accessibility of classes and members

What sales volume would be required in order to meet : The investors will put up the funds if the project is likely to have an operating income of $500,000 or more. What sales volume would be required in order to meet the minimum profit goal? (Hint: Use the breakeven formula, but include the required ..

Calculate the effective cost of both proposals : Calculate the effective cost of both proposals, and indicate which proposal should be accepted.

Calculate the velocity and flow rate of acetone at the exit : A tank containing acetone at 20 oC has a drain pipe connected vertically at the bottom. The pipe is made of galvanized iron, 0.5 in NPS Schedule 40 with length L= 2m. The acetone depth in the tank is H= 5 m.

Determine the critical point tc and the critical do : If the critical point in a DO sag curve is found to be 18km downstream from the discharge point of untreated wastewater, would you expect the critical point to move upstream (toward the discharge point)

Estimate the effective cost of the commercial paper : Sara was also approached by a bank, wanting her company's business, offered a letter of credit back-up facility with an annual fee of 50 basis point rather than a line of credit. Sara wondered how this would affect the cost of the commercial paper..

User Account

All Pages