Which product will be more profitable

Assignment Help Financial Management
Reference no: EM131489322

A company produces two products: Product A and B. Which product will be more profitable? (use information from the following table) Product A Product B Annual Sales (unit)

product A product B

1,800 4,500

Unit cost (VC) $680 $900

Fixed Cost $200,000 $300,000

Selling Price $760 $1,000

Reference no: EM131489322

Questions Cloud

Calculate the rate at which hydrogen escapes from the sphere : Determine the number of theoretical plates required to perform the operation. (b) State which plate the feed should be introduced onto
How much interest will be paid in dollars : Greg borrows $2,500 for 4 years at 7% simple interest (annual rate). How much interest will be paid in dollars? How much should the bank pay?
Assesses the microeconomic factors that affect decisions : Assesses the microeconomic factors that might affect decisions about the proposed investment, supported by specific examples
Describing how does the quantity supplied change : Explaining What is the difference between a change in supply and a change in quantity supplied?
Which product will be more profitable : A company produces two products: Product A and B. Which product will be more profitable?
Explain trends in the performance of p jason corporation : Explain trends in the performance of P. Jason Corporation. Identify each performance measure as favorable or unfavorable and explain the significance of each.
Explain how supply is different from demand : The BIG Idea Explain why the supply curve slopes upward.
Estimate the current cost of capital for rad : You have estimated the optimal debt to capital ratio for RAD, based upon minimizing the cost of capital, to be 50%.
What might prevent you from increasing the quantity supplied : Elasticity of Supply If you were a producer, what might prevent you from increasing the quantity supplied in response to an increase in price?

Reviews

Write a Review

Financial Management Questions & Answers

  Depreciation will equal capital expenditures in each year

Following is a four-year forecast for Torino Marine. Year 2015 2016 2017 2018 Free CFs in million -76 92 112 150 a. Estimate the fair market value of Torino Marine at the end of 2014. Assume that after 2018, earnings before interest and tax will rema..

  Calculate the charge necessary to cover cost

Next year Holyspirit healthcare organization will serve 100 patients in the following manner-30 Medicare Patients who pay $850/diagnosis. 25 Medicaid patients who pay $900 per diagnosis. Calculate the charge necessary to cover ABC’s cost

  Compute the yield till maturity for the buyer

You own a 30 year, $ 1000 face value bond with a coupon of 8%, that you bought for $ 1000. 5 years later you now want to sell it. The market price is $ 850. Compute the yield till maturity for the buyer. What were you rating of return?

  Financial statement analysis the specific purposes of this

financial statement analysis the specific purposes of this project are1. apply to real company the basic knowledge and

  Expected return on portfolio-equally invested in two assets

A stock has a beta of 1.15 and an expected return of 13 percent. A risk-free asset currently earns 2.8 percent. a. What is the expected return on a portfolio that is equally invested in the two assets?

  Cash conversion cycle-affecting sales and cost of goods sold

Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were $190,000 (all on credit), and it earned a net profit of 7%. Its inventory turnover was 4.87064 times during t..

  Discounting and present values

If the account had a beginning balance of $3,500, and you decided to make 2 equal deposits - one today and one 3 years from today - rather than a single deposit today, how much would you need to deposit each time? Assume the account's APR is 6.6%, co..

  Why is inventory management and control important

What are the key processes, data, and data flows in the cost accounting system of a manufacturer that uses a standard cost system?

  Pv and loan eligibility

You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is $450. The loan will have a 9% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months?

  Investors required rate of return

You expect Budweiser will pay dividends of 2.00 in one year, 2.50 in two years, and 3.00 in three years. From that point onwards, dividends will grow at 7% per year. Investors' required rate of return is 10%. According to the Dividend Discount Model,..

  Rank the projects based on their npvs

Rank these projects based on their NPVs.- Rank these projects based on their IRRs.- Rank these projects based on their PIs. Do these rankings agree with those based on NPV or IRR ?

  Manufacturer of ball bearings-cost of equity capital

The following data pertains to Zolar Corp., a manufacturer of ball bearings (dollar amounts in millions). Total Assets $6,840 Interest-Bearing Debt $3,562 Average Pre-tax borrowing cost 11.5% Common Equity: Book Value $2,560 Market Value $12,850 Inco..

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