Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: A company is doing an examine of a proposed new finance textbook.

Fixed cost per edition

Development (reviews class testing and so on)

18,000

Copyediting

5,000

Selling and promotion

7000

Typesetting

40,000

Total

70,000

Variable Costs per copy

Printing and binding

4.2

Administration cost

1.6

Salesperson's commission (2% of selling price)

0.6

Author's royalties (12% of selling cost)

3.6

Bookstore discounts (20% of selling cost)

6

Total

$16.00

Projected selling price

$30.00

Marginal tax rate is 40 percent

find out the breakeven volume in units and in dollar sales

Develop a breakeven chart for the textbook

find out the number of copies the must be sold in order to earn an operating profit of

$21,000 on this book

Assume the company feels that $30.00 is too high a price to charge for the new finance textbook. $24.00 would be a better selling price. Determine the breakeven volume be at this new selling price?

 

 

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M916239

Have any Question? 


Related Questions in Basic Finance

Interpret financial information written assessment-learning

Interpret financial information Written Assessment- Learning Outline - Within this resource, you will be covering the following key topics: Access and interpret financial information Use and provide financial information ...

The largest hedge fund company in america and i entered

The largest hedge fund company in America and I entered into a long position at exactly the same time at 10:20 am this morning in the same security. At 3:00 pm both of us placed an order to sell the position. The spot ra ...

Assume the likelihood that any chemical experiment is

Assume the likelihood that any chemical experiment is successfully performed is 0.87. We randomly selected three chemical experiments in three different labs. 1) What is the probability that all three experiments are suc ...

What is the difference between holding a short call and a

What is the difference between holding a short call and a long put position? Does one of these positions results in an obligation on the part of the holder?

A and b play a game in which each has 3 coins a 5p a 10p

A and B play a game in which each has 3 coins a 5p, a 10p and a 20p respectively.- Each selects a coin without the knowledge of the others choice. If the sum of the coins is an odd amount A win's B's coins. If the sum is ...

The current price of gold is 1600 per troy ounce there are

The current price of gold is $1,600 per troy ounce. There are no storage costs. The risk free rate of interest is 5% continuously compounded. Please help me with the answers for all the questions. (a) What is the forward ...

Financial forecasting assignment-the historical financial

Financial Forecasting Assignment- The historical financial statements of HWO Incorporated are on the accompanying EXCEL file. Enter your assigned number in cell l1 (eye one). This is your individual data set. Print the p ...

Portfolio management and performance evaluation1 using the

Portfolio Management and Performance Evaluation 1. Using the 30-years of monthly data from 1986-2015 contained in the first tab of the spreadsheet for this assignment ("Homework Assignment #2 Data"), do the following: (a ...

Question 1a basic requirement for an effective financial

Question 1 A basic requirement for an effective financial system is a monetary system that performs which of the following financial functions? formation and transferring of money storing gold and silver to back up money ...

Norton company has a debt-to-equity ratio of 118 roa of

Norton Company has a debt-to-equity ratio of 1.18, ROA of 12.23 percent, and total equity of $1,484,000. What are the company's equity multiplier, debt ratio, and ROE? (Round answers to 2 decimal places, e.g. 12.55 or 12 ...

  • 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