Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: A recent business school graduate plans to open a wholesale dairy products firm. The business would be completely financed through equity. He expects the 1st year sales to total $5,500,000. He desires to earn a target pretax profit of 1,000,000 during his first year of operation. Variable costs are forty percent of sales. How large can his fixed operating cost be if he is to meet his profit target? Determine breakeven level of sales at the level of fixed operating costs determined in [A]?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M916236

Have any Question? 


Related Questions in Basic Finance

An investor has a cash of 10000000 at disposal he wants to

An investor has a cash of $10,000,000 at disposal. He wants to invest in a bond with $1,000 nominal value and whose dirty price is equal to 107.457%. 1. What is the number of bonds he will buy? 2. Same question if the no ...

An analyst has estimated how a stocks return will vary

An analyst has estimated how a stock's return will vary depending on what will happen to the economy. If a Recession economy occurs (.1 probability), expected return is -60%. If a Below Average economy occurs (.2 probabi ...

Jody asbell and three of her friends purchased a small

Jody Asbell and three of her friends purchased a small shopping center in their town. They paid $985,090 and made a down payment of $125,000. They rented five of the stores for $3,400 each per month. Their annual expense ...

Consider panel b of given figure where the short-run

Consider Panel B of given figure, where the short-run equilibrium occurs at an output level below potential output, Yp. Suppose that the initial inflation target was at the level corresponding to point 2, but the central ...

Dodge ball bearings had sales of 19000 units at 65 per unit

Dodge Ball Bearings had sales of 19,000 units at $65 per unit last year. The marketing manager projects a 15 percent increase in unit volume sales this year with a 20 percent price decrease (due to a price reduction by a ...

Explore the website of internal revenue service irsgov and

Explore the website of Internal Revenue Service (IRS.GOV) and write 200 words minimum as to what info you found on the website. Explore the following tabs on the website: Filing, Payments, Refunds, Credits and Deductions ...

Explain why monetary policymakers actions in cutting the

Explain why monetary policymakers' actions in cutting the Federal Funds rate to almost zero were not sufficient to boost economic activity during the recession of 2007-2009.

Wy are voids filled with lightweight infilling

Why are voids filled with lightweight infilling material in raft foundation of pumping stations?

Use a graph to show what happens to the interest rate if

Use a graph to show what happens to the interest rate if the demand for money is increasing while the supply of money is decreasing.

Explain and discuss the lsquoopportunity cost concept as a

Explain and discuss the ‘opportunity cost' concept as a strategic construct. How does opportunity cost relate to the notion of incremental cash flow for a project? Present an example.

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate