Will the company make a profit

Assignment Help Finance Basics
Reference no: EM131911256

The fixed cost for a particular product is $10,000, the variable cost is $3 per unit, and the expected demand is 20,000 units. If the selling price of the product was $3.50/unit

a. Will the company make a profit?

b. If the company wants to make $5,000 as profit, what price should the company sell its product for?

c. If selling price is $5/unit, what is the break-even # of units the company needs to sell?

Reference no: EM131911256

Questions Cloud

Does the performance improvement justify the investment : Search the Internet for examples of specific VLAN implementations. Does the performance improvement justify the investment?
What are the implications of legal problems for credit : a. What are the implications of these legal problems for credit management at Moore Air Conditioning Company?
Design any two sample data-entry screens : Design any two sample data-entry screens for the proposed system using the data-entry guidelines provided in the text.
What amounts considered product and period cost respectively : A manufacturing Company prepays its Insurance Coverage. What amounts should be considered product and period costs respectively for the first year of Coverage?
Will the company make a profit : The fixed cost for a particular product is $10,000, the variable cost is $3 per unit, and the expected demand is 20,000 units.
Why is motivation important : Motivation is not a new concept, so why is motivation important? Is it more important for an employee to be motivated or engaged?
Research paper on home area networks : You need to rewrite a research paper on HOME AREA NETWORKS You need to analyses the security risks connected with the adoption of the HAN system
Create a report of your recommendation to be presented : For each license type considered, provide the rationale behind why you selected or rejected that base license agreement type for your product.
Pursue related or unrelated diversification or both : In the event your athletic footwear company had the opportunity to diversify into other products or businesses of your choosing, would you opt to pursue related

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the expected value and standard deviation

Calculate the expected value, standard deviation, and coefficient of variation for NN's forecasted EPS.

  What will it cost to implement your recommendation

Implementation (This is where you can be creative using the information you have already provided. You will need to make up the programs, people, and finances.)

  Objectives of international compensation for a firm

1. Present the general objectives of international compensation for a firm. 2. List the objectives of international compensation for an employee. Which of these would be the most important to you? Why?

  Define relation between future values and interest rates

Calculate the future value in five years of $5,000 received today if your investments pay 6 percent compounded annually.

  Desired amount of funds

It has decided to set the subscription price at FF100 per share. How many shares must be issued to raise the desired amount of funds?

  Calculate the dollar amount that sureway venture investors

A. Calculate the dollar amount that SureWay venture investors would lend to Jerry’s Tree Services. B. What would be the dollar amount of the loan if the loan is made for only two years?

  Means the present value of the expected cash flows

Guarantees all cash flow assumptions will be realized. Means the present value of the expected cash flows is equal to the project's cost. Ignores the inherent risks within the project. Is expected to increase the stockholders' value by the amount ..

  What is the stock intrinsic value

If the required rate of return on its stock is 16%, what is the stock's intrinsic value?

  Explain the time value of money concept

Is there a difference in the mechanics that is used for collecting qualitative as opposed to quantitative data? Explain the time value of money (TVM) concept. Why is TVM an important tool in the financial planner's tool kit?

  In october the company had sales that were 2400 higher than

1.quiltworks company reported actual sales of 2000000 and fixed costs of 450000. the contribution margin ratio is 30.a

  Why should financial analysis play a dominant role

Write your initial response in 1-2 paragraphs in approximately 300 words. Why should financial analysis play a dominant role in capital budgeting decisions?

  Illustrate benefits of diversification on portfolio risk

Lets extend the discussion by examining the practical implications of these concepts. For a fund of hedge funds, how does risk- based leverage differ from accounting-based leverage?

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