The total cost formula for a company can be modeled by TC 12570 + 50x where x represents the number of items sold. A formula for the company's total income is modeled with TR = 80x, where a represents the number of items sold. This company will breakeven when its total costs equal its total income. = How many items must this company sell to breakeven? Answer:
Q: Selected ratios formulars Unilever 2021 BOPP 2021 ROCE PBIT / net assets * 100 (32,424/39,406…
A: Ratio analysis is an important technique that is used to assess the financial health of companies…
Q: You are planning to save for retirement over the next 30 years. To do this, you will invest $1,300 a…
A: An annuity is a financial product or investment that involves a series of regular payments made or…
Q: Find the Holding Period Return (HPR) for a 5 years bond with 1000 par value/ buying price, 0.07…
A: Holding period return refers to the return gained by the investors over a period of time when the…
Q: The bank made a 3-year loan 7% discount rate, with no coupons and a par value of $1,000. If…
A: Face value = $1,000 Discount rate, r = 7% Period, n = 3 years The value of loan at the beginning…
Q: Describe in your own words the characteristics of growth and value stocks. Which type of stock is…
A: Stocks, usually referred to as shares or equities, are certificates of ownership in publicly traded…
Q: Nesmith Corporation's outstanding bonds have a $1,000 par value, a 8% semiannual coupon, 17 years to…
A: Compound = semiannually = 2 Face value = fv = $1000 Coupon rate = 8 / 2 = 4% Time = t = 17 * 2 = 34…
Q: An investor obtained a fully amortizing mortgage five years ago for $95,000 at 11 percent for 30…
A: Replacing a current financial obligation with a new one that has a different duration and interest…
Q: Westco Company issued 11-year bonds a year ago at a coupon rate of 8.9 percent. The bonds make…
A: Compound = semiannually = 2 Time = t = 11 * 2 = 22 semiannual Coupon rate = 8.9 / 2 = 4.45% Face…
Q: A firm could have issued straight debt at a 12% interest rate. However, with warrants attached, the…
A: Face value = $1,000 Coupon rate = 10% Yield to maturity, r = 12% Years to maturity, n = 20 years…
Q: Following the calculation for years 1 and 2, what would be the payment adjustments and loan balances…
A: In this question, the monthly payment cannot exceed 5% of the previous year's monthly payment. The…
Q: The primary advantage to using accelerated rather than straight-line depreciation is that with…
A: Accelerated depreciation is a method of depreciation in which an asset is expensed at a faster rate…
Q: Soft Key is trying to determine how best to produce its newest product, DVORK keyboards. The…
A: When making a product a company incurs two main types of costs – fixed costs and variable costs.…
Q: Project L requires an initial outlay at t = 0 of $59,488, its expected cash inflows are $11,000 per…
A: IRR is Internal Rate of Return at which NPV of project is zero. It is one of the main techniques of…
Q: A financial institution has assets denominated in British pound sterling of $125 million and…
A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…
Q: At what annual interest rate, compounded annually, would $510 have to be invested for it to grow…
A: Investment amount (PV) = $510 Future value (FV) = $1961.97 Period (n) = 15 Years
Q: The Cape Corporation has ending inventory of $572,344, and cost of goods sold for the year just…
A: Given: Cost of goods sold = $6,571,459 Ending inventory = $572,344
Q: A municipal bond is debt of federal government. show your work Select one: True False
A: A municipal bond is a type of debt security issued to finance public projects such as the…
Q: 2. Answer all parts of this question. (a) Consider the returns of two shares, A and B, under three…
A: 1. Expected Return. ER = ∑ Ri *Pi where , ER = Expected Return Ri = Return of stock for i th…
Q: AAA Corporation and BBB Corporation are identical in every way except their capital structures. AAA…
A: A company's average after-tax cost of capital from all sources, including common stock, preferred…
Q: Based on Exhibit 7-7, or use of a financial calculator, what would be the monthly mortgage payments…
A: Loans are paid by monthly payments and these monthly payments carry the payment for interest and…
Q: Suppose that the current 1-year rate (1-year spot rate) and expected 1-year T-bill rates over the…
A: According to the unbiased expectations theory, forward rates are an unbiased predictor of future…
Q: Lily Corp. has an issue of preferred stock outstanding that pays a $5.50 dividend every year in…
A: In the given case, we have provided the annual dividend per share of preferred stock and the current…
Q: Don Draper has signed a contract that will pay him $50,000 at the end of each year for the next 10…
A: Present value is the current value of a future sum of money, discounted at an appropriate rate of…
Q: An appraiser noted the following about a rental home: Needs exterior paint $3,636 cost to cure;…
A: Curable physical depreciation refers to the decrease in the value of a property due to repairable or…
Q: Project L costs $35,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is…
A: MIRR is a capital budgeting techniques which can be calculated with the help of future cash inflow…
Q: Josh Collins plans to buy a house for $299,000. If that real estate is expected to increase in value…
A: The concept of time value of money states that money or a financial security’s or an asset’s worth…
Q: You are a senior manager at an automobile company. In an effort to offer a full menu of auto and gas…
A: An automobile company is assessing an oil exploration project. An appropriate discount rate for the…
Q: The final coupon payment and par value are paid to the bond holder on the maturity date. Select…
A: Par value of bond is that amount which is also called face value of the bond. it is received by the…
Q: The rate of return on the common stock of Flowers by Flo is expected to be 14 percent in a boom…
A: Given :
Q: Compute the price of the European call option using the R program introduced in class where K = 100,…
A: A European option is the type of options that limits the exercise of the options until the…
Q: If you purchased a newly issued 10-year bond from the Icelandic government with a face value of…
A: Bonds are debt instruments issued by different entities. The issuing entity can be a government…
Q: 1. Complete an amortization schedule for the following loan. The loan amount is $100,000 at 4.5%…
A: Given: Loan amount = $100,000 Interest rate, r = 4.5% Term, n = 5 years The annual payment is…
Q: 2. Assume that you are a swap dealer and have just acted as a counterparty in an interest rate swap.…
A: An agreement to trade one kind of interest payouts for another over a predetermined time period is…
Q: The current price of a non-dividend paying stock is $30. Use a two-step tree to value a European put…
A: An option is a type of financial instrument that is based on the value of underlying securities,…
Q: The company’s preferred stock pays an annual dividend of 4.5 percent and is currently selling for…
A: Characteristics of a preferred stock are known. The cost of the preferred stock is to be determined.…
Q: Return to question Judson Inc. recently issued new securities to finance a new TV show. The project…
A: Ratio analysis is quantitive method of getting inside review of an organisation for the purpose of…
Q: A proposed expansion project is expected to increase sales by $89,000 and increase cash expenses by…
A: Here, Increase in Sales is $89,000 Increase in Cash Expense is $44,000 Value of Fixed Asset is…
Q: A corporation creates a sinking fund in order to have $910,000 to replace some machinery in 9 years.…
A: Future value (Sinking fund value) = $910,000 Interest rate = 5.7% compounded monthly Period = 9…
Q: Meghan Pease purchased a small sailboat for $8,350. She made down payment of $1,300 and financed the…
A: Purchased Amount = $8350 Down Payment = $1300 Monthly Payment = $232.38 Remaining Payment = $8350 -…
Q: A par bond has a yield to maturity of 1.5% and pays coupons semi-annually. What is the coupon…
A: The yield to maturity (YTM) of a bond selling at par has been provided. The bond pays coupon semi…
Q: 5. What is the intrinsic value for a 2 year 5% riskless coupon bond given the following data: par…
A: To determine the intrinsic value of the 2-year 5% coupon bond, we need to calculate the present…
Q: Cost of Preferred Stock with Flotation Costs Burnwood Tech plans to issue some $50 par preferred…
A: The cost of preferred stock is the rate of return that a company must offer to its preferred…
Q: (they ned to last longen. Pappy's paid $2 Pappy up with a new product, the marketing survey to…
A: Capital budgeting tools are used to determine the financial feasibility and viability of a project.…
Q: Question 4 The Finance Manager, in implementing the strategic management of the company, is required…
A: WACC of a company refers to the return that it provides to its stakeholders. It considers the…
Q: 'Since they engage in less trading than most other mutual funds, they generate a limited amount of…
A: Capital gains are the profits realized from the sale of securities held by the mutual fund. When a…
Q: Firm A has common stock with a market value of $9 million and debt with a market value of $1…
A: Market value of common stock = $9 million Market value of debt = $1 million Equity beta = 1.5…
Q: ABC co and XYZ Co. are identical firms in all respects except for their capital structure. ABC is…
A: The Weighted Average Cost of Capital (WACC), also known as Composite Cost of Capital or Average Cost…
Q: Suppose Walmart stock has a beta of 0.63. If the market return is 12%, the risk free rate is 2%,…
A: beta = b = 0.63 Market return = mr = 12% Risk free rate = rf = 2%
Q: Suppose Microsoft has no debt and a WACC of 8.8%. The average debt-to-value ratio for the software…
A: Cost of Equity: In finance, the cost of equity is the rate of return required by a firm for a…
Q: Assets ITEM Total Cash & Due from Banks Cash & Due from Banks Growth Investments - Total Investments…
A: We will be calculating asset management ratio from the year 2018 to 2021
Step by step
Solved in 2 steps
- For a certain company, the cost function for producing x items is C(x)=40x+200, and the revenue function for selling x items in R(x)=−0.5(x−80)2+3,200. The maximum capacity of the company is 110 items. The profit function P(x) is the revenue function R(x) (how much it takes in) minus the cost function C(x) (how much it spends). In economic models, one typically assumes that a company wants to maximize its profit, or at least make a profit!Assuming that the company sells all that it produces, what is the profit function?P(x)= Preview Change entry mode . Hint: Profit = Revenue - Cost as we examined in Discussion 3. What is the domain of P(x)?Hint: Does calculating P(x) make sense when x=−10 or x=1,000? The company can choose to produce either 40 or 50 items. What is their profit for each case, and which level of production should they choose?Profit when producing 40 items = Number Profit when producing 50 items = Number Can you explain, from our model, why the company makes less profit…A company produces and sells a product. The company has found that the costto produce x units of the product is given by C(x) = 50x + 200 (in dollars),and the revenue from selling x units is given by R(x) = 100x - x? (in dollars).What is the number of units the company should produce and sell to maximize profitA firm has a cost function C(x)=10x+107, where x represents the number of units produced. the firm's revenue function is R(x)=38x if x is equal to 78 find the firm's profit. round to the nearest whole number
- Suppose a ceiling fan manufacturer has the total cost function C(x) = 35x + 1200 and the total revenue function R(x) = 65x. (a) What is the equation of the profit function P(x) for this commodity? P(x) = (b) What is the profit on 20 units? P(20) = Interpret your result. The total costs are less than the revenue. The total costs are more than the revenue. The total costs are exactly the same as the revenue. (c) How many fans must be sold to avoid losing money? fans1. The function of a company's product to produce output at the level of input use is Q = -1/3x3 + 9x3 + 70. If the input price x used is IDR. 800, - per unit, while the output price is IDR. 10, - per unit, specify: a. The amount of input that must be used by the company in orderto produce the amount of output that provides maximum finance! How much is the output? b. What is the average size of the company?Assume that the linear cost and revenue models apply. An item costs $13 to make. If fixed costs are $1600 and profits are $5700 when 100 items are made and sold, find the revenue equation. (Let x be the number of items.)R(x) =
- A small company manufactures a certain item and sells it online. The company has a business model where the cost, C in dollars, to make x items is given by the equation C = 20/3 x + 50. The revenue R , in dollars , made by selling x items is given by the equation R = 10x. How many items must the company sell in order for the cost to equal their revenue?Fill in the blank/s: A company’s __________ function is the money generated by selling x units of its product. The difference between this function and the company’s cost function is called its ___________ function.Given the following, solve the independent questions using the CVP analysis. Selling Price = 30 Variable Cost per Unit = 20 Total Fixed Cost = 60,000REQUIRED: 1 Find the following functions: • Total Revenue = [TR] • Total Variable Cost = [TVC] • Total Cost = [TC] • Total Profit = [TP] 2 What is the volume of production for the business firm not to incur any profit nor loss? 3 At zero quantity of production, how much is the total cost? 4 What is the volume of production if the company wants to earn 100,000 profit?
- 3. A hardware company has a linear total cost function and has determined that it has a total cost of $13,980 on sales of $6,000. The same company has a total cost of $18,620 on sales of $14,000. The selling price per unit is $1. (a) Determine the revenue, cost, and profit function using q for quantity. (b) What is the fixed cost? (c) What is the variable cost on sales of $60,000? (d) What is the total cost on sales of $60,000? (e) Find the break-even point and break-even dollar volume of sales.The Marginal Revenue function for a company's product is:MR = 240000 - 22xwhere x equals the number of units sold. If total revenue equals 0 when 0 units are sold, determine the total revenue.The equation which reflects a CVP income statement is a. Sales Variable costs - Fixed costs = Net income. b. Sales + Fixed costs = Variable costs + Net income. c. None d. Sales Variable costs + Fixed costs = Net income. e. Sales Cost of goods sold + Operating expenses + Net income. Clear my choice Reliable Manufacturing wants to sell a sufficient quantity of products to earn a profit of $80 000. If the unit sales price is $10, unit variable cost is $8, and total fixed costs are $160 000, how many units must be sold to earn income of $80 000? a. 30 000 units b. 1 200 000 units c. 80 000 units d. 120 000 units None Clear my choice A company desires to sell a sufficient quantity of products to earn a profit of $300 000. If the unit sales price is $20, unit variable cost is $12, and total fixed costs are $600 000, how many units must be sold to earn net income of $300 000? 90 000 units a. b. None c. 67 500 units d. 112 500 units e. 168 750 units Clear my choice