David decides to make and sell dolls as a side business. The function below gives the average cost A(x) (in dollars) per doll when x dolls are produced. Use the function to fill in the boxes below. 9x + 800 A) The average cost to produce 19 dolls is $ A(x) = x B) To reduce the average cost to produce each doll down to $17, dolls must be produced.
Q: Wendy has $23,000.00 invested in a bank that pays 6.75% annually. How long will it take for her…
A: Present Value = pv = $23,000Interest rate = r = 6.75%
Q: Using the four-year financial statements of Tesla 2017-2020 (Appendix 2), evaluate and explain the…
A: Profitability Ratios:Net Profit Margin = Solvency Ratios: Debt-to-Equity Ratio = Total Debt / Total…
Q: Falco Inc. financed the purchase of a machine with a loan at 4.34% compounded quarterly. This loan…
A: Loans are paid by fixed periodic payments and these payments carry payment for interest and loan…
Q: A vehicle is advertised with beginning-of-month lease payments for {A} months at {B}% compounded…
A: Monthly lease payment refers to an amount that is being paid every month including the interest and…
Q: 1. The following table shows the yield to maturity (YTM) of various types of bonds on March 15,…
A: A) let r be the expected yield of a three-year Treasury two years from today (1 + 1.852%) 2 *( 1 +r)…
Q: Armaplex Security Company hired to forecast their revenues and expenses for the next two years. The…
A: Calculating the average yearly rate of change of a variable during a given period is done by…
Q: A project has annual cash flows of $4,500 for the next 10 years and then $7,500 each year for the…
A: IRR of the Project is the internal rate of return of the project,This is the rate that equates PV of…
Q: kindly explain also 1. Empire plans to invest $20M to refresh 10 of its stores in Ontario. The…
A: NPV is the most used capital budgeting method based on time value of money and can be calculated as…
Q: Analysts of the ICM Corporation have indicated Question 6-Cost of New Common Equity that the company…
A: It is a case where new stocks are to be issued. It incurs floating costs. Hence the cost of new…
Q: Everest Inc's preferred stock pays a dividend of $1.85 per quarter, and it sells the preferred stock…
A: It is a case of preferential shares offering preferential dividends on a quarterly basis. It…
Q: Wildhorse Manufacturing Company has the following account balances at year-end: Office supplies Raw…
A: For a manufatcurer entity the inventory includes the raw materials, work-in-process and finished…
Q: Inverted Processes, Inc., is considering adding another greenhouse that would cost $95,000 and…
A: The given details are:Initial cost: $95,000Expected life: 8 yearsAnnual net cash flows: $20,000tax…
Q: An insurance company is offering a new policy to its customers. Typically the policy is bought by a…
A: Given: Variables in the question:DescriptionPayments ($)First birthday820Second birthday820Third…
Q: NFL Most valuable NFL teams. Each year Forbes reports on the value of all teams in the National…
A: Histogram: Use a histogram to describe the distribution of current values for the 32 NFL teams. Bar…
Q: Required information [The following information applies to the questions displayed below.] A pension…
A: Here,Expected ReturnStandard DeviationStock Fund17%32%Bond Fund11%23%Risk Free Rate6%Correlation…
Q: Mandesa, Inc has current liabilities of $8 million, current ratio of 2 times inventory turnover of…
A: We analyze financial statements of a company using different financial ratios.These financial ratios…
Q: Energy (BTU) 2.800 Energy productivity increase=% (enter your response as a percentage rounded to…
A: We can determine the productivity increase using the formula below:Productivity increase means the…
Q: Market Cap = 5.65B Long term debt = 748,000 Beta for 5 years monthly =0.27 Avg. volume…
A: Cost of Equity (Re): The cost of equity can be calculated using the Capital Asset Pricing Model…
Q: Using a financial calculator, solve for the unknowns in each of the following situations. (a) On…
A: Present value (PV) is a financial concept used to determine the current worth of a future sum of…
Q: A mortgage is repaid by making payments of $1800 at the end of every month for 25 years. If interest…
A: Monthly Payment = $1800Tenure of loan = 25 yearsInterest rate = 3.75%
Q: Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. The…
A: Npv is also known as Net present value. It is a Capital budgeting technique which helps in decision…
Q: Y0: -7800 Y1: 1700 Y2: 2600 Y3: 3100 Y4: 4200 What is the payback perion in years?
A: Payback period is one of the capital budgeting technique used for making investment decisions.…
Q: Complete the following using present value. (Use the Table 12.3) Note: Do not round intermediate…
A: We are given the following details:Desired amount: $17,600Length of time: 7 yearsRate: 2% p.a.…
Q: Your wage increased from $14 before COVID to $18 after COVID. This increase happened over 2 year.…
A: Present Value = pv = $14Future Value = fv = $18Time = t = 2 Years
Q: K Oldhat Financial starts its first day of operations with $9 million in capital. A total of $140…
A: Statement of financial position (balance sheet) refers to a statement which provides a brief summary…
Q: A loan with the following terms is being made: Fixed rate, constant monthly payment. Closing date…
A: APR is calculated as shown below.
Q: Using Excel to calculate 1. What is the present value of the following cash flow at a 12% discount…
A: NPV is also known as Net present value. It is a capital budgeting technique which helps in decision…
Q: You are a real estate investor and you are considering an offer to buy an office building for a…
A: 1. NPV ( Net present value) is a captial budgeting technique used for making investment decisions.…
Q: The bank have an incentive to value the new securities at a higher price because they will gain…
A: It is a case of investment banking where an investment banking company is valuing companies and…
Q: Currently average attendance at UTSA football games is 10,000 students. If the university has a goal…
A: Variables in the question:Current average attendance (PV)=10,000Growth Rate (r)=7% per yearn=10…
Q: 1) Suppose that your gross annual income is $108,000. (a) What is the maximum amount you should…
A: The maximum amount you should spend on a mortgage payment is 28% of your gross income. You need to…
Q: Lab Finance Solutions 7-13 Explain the linkages among financial decisions, return, risk, and stock…
A: A stock market, also known as an equity market or share market, is a platform where buyers and…
Q: Calculate the required rate of return for Hope Inc., assuming that (1) investors expect a 2.0% rate…
A: CAPM refers to the method of calculation of the required return of the stock based on the systematic…
Q: At an interest rate of 6%, how long will it take to 4x your money? PLEASE BREAK DOWN INTO 2 DECIMAL…
A: Given variable in the question:Rate=6%Required: how long will it take to 4x your money
Q: You are asked to evaluate the following two projects for the Norton corporation. Use a discount rate…
A: Year Project XProject Y0-44000-6400012200032000220000250003210002600042060028000Discount…
Q: The 2017 balance sheet of Kerber's Tennis Shop, Incorporated, showed $2.95 million in long-term…
A: Particulars20172018Long-term Debt$2,950,000$4,000,000Common Stock$730,000$905,000Surplus…
Q: An oil exploration firm is currently searching for oil. Their probability of finding oil this year…
A: We Have;probability of finding oil this year is 29%Expected return if we found oil is 39%If we don't…
Q: Now it's time to practice what you've learned. Consider a future value of $2,000, 9 years in the…
A: Future Value = fv = $2000Time = 9 yearsInterest rate = 24%
Q: Quèstion 1 Twenty-five semi-annual deposits are made earning interest of 6% compounded…
A: FV = P * [(1 + r)^n - (1 + g)^n] / (r - g)where:FV is the future value of the annuity =?P is the…
Q: Annual percentage yield) Compute the cost of the following trade credit terms using the compounding…
A: APR means the annual percentage rate, which represents both the interest rate on the loan as well as…
Q: Your firm needs a computerized machine tool lathe which costs $40,000 and requires $11,000 in…
A: Salvage value after tax is computed as follows-After tax salvage value = Salvage value - tax…
Q: Suppose you earned a $330,000 bonus this year and invested it at 8.25% per year. How much could you…
A: It is a case of calculating the annuity of withdrawals. The withdrawals are done on an annual basis…
Q: A firm plans to build a plant on land it owns. The firm paid $200,000 for the land 30 years ago. Its…
A: Variables in the question:Initial outlay = $20,000,000Sales per year for years 1-10= $12,000,000 No…
Q: Calculate the required rate of return for Best Inc., assuming that (1) investors expect a 1.5% rate…
A: Required rate of return can be calculated using the CAPM Model after incorporating the effects of…
Q: A project cost 25000 is expects to generate cash flows are given as follows @12% for both the…
A: The net present value is the method of finding the profitability of the project by adding up…
Q: A. pension fund manager is considering three mutual funds. The first is a stock fund, the second is…
A: Here,Expected Return E(R )Standard Deviation Stock Fund (S)17%38%Bond Fund (B)12%17%Risk Free…
Q: How much will $15 000 amount to if invested for 3 years at 9%?
A: It is a case where calculating a future value of an investment is required. It is the application of…
Q: Projects W and X are mutually exclusive projects. Their cash flows and NPV profiles are shown as…
A: We are given two mutually exclusive Projects- W & X.The cash flows associated with both projects…
Q: Dulaney's Stores has posted the following yearly earnings and expenses. A) Dulaney's current…
A: Ratio analysis refers to the method used for measuring the quantitative terms for estimating the…
Q: Question 3 Heymann Manufacturing recently purchased a new machine for $350,000. It cost $20,000 to…
A: For tax purposes, the United States uses a depreciation technique called MACRS, or Modified…
Step by step
Solved in 4 steps with 3 images
- 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?Mountain Fun manufactures snowboards. Its cost of making 2,100 bindings is as follows: (Click the icon to view the costs.) Suppose Hemingway will sell bindings to Mountain Fun for $14 each. Mountain Fun would pay $3 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.70 per binding. Read the requirements. Requirement 1. Mountain Fun's accountants predict that purchasing the bindings from Hemingway will enable the company to avoid $1,800 of fixed overhead. Prepare an analysis to show whether Mountain Fun should make or buy the bindings. (Only enter the net relevant costs. For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the bindings in-house.) Variable costs: Binding costs Direct materials Direct labor Variable overhead Fixed costs Purchase price from Hemingway Transportation Logo Total differential cost of 2,100 bindings Should Mountain Fun make or buy the…Nik is a company that manufactures running shoes. It has a fixed cost of $300,000.00. Additionally, it costs $30 to produce each pair. They are sold at $80 a pair. A.Write the cost function, C, of producing x running shoes. B.Write the revenue function, R, from the sale of x running shoes. C.Suppose Nik produces too many running shoes- more than they can sell in the stores. How would this impact profits? Is there anything the managers can do to cut their losses? D.Suppose that we can sell all of the units that we produce. How many running shoes would Nik have to produce/sell in order for the company to make a profit? E.Determine the break-even point. Describe what this means. Graph the lines with at least three points each.
- Cool Boards manufactures snowboards. Its cost of making 1,800 bindings is as follows: (Click the icon to view the costs.) Suppose Lewis will sell bindings to Cool Boards for $16 each. Cool Boards would pay $3 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.70 per binding. Read the requirements. Requirement 1. Cool Boards' accountants predict that purchasing the bindings from Lewis will enable the company to avoid $1,800 of fixed overhead. Prepare an analysis to show whether Cool Boards should make or buy the bindings. (Only enter the net relevant costs. For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the bindings in-house.) Variable costs: Direct materials Direct labor Variable overhead Binding costs Fixed costs Purchase price from Lewis Transportation Logo Total differential cost of 1,800 bindings Should Cool Boards make or buy the bindings? Decision:…Burnem Inc. manufactures thumb drives and sells them to a distributor. Burnem's total cost and total revenue (in dollars) for x thumb drives are given by the following equations. Total cost = 6(x + 4716) and Total revenue = 15x (a) How many thumb drives must Burnem sell to break even? X = thumb drives (b) What is the selling price of each item? $ (c) What are the fixed costs? $ (d) What is the marginal profit per item? $Marikina Shoe Manufacturing Company will produce a special-style shoe if the order size is large enough to provide a reasonable profit. For each special -style order, the company incurs a fixed cost of P20,000 for the production set up. The variable cost is P600 per pair, and each pair sells for P800. a. Let x indicate the number of pairs of shoes produced. Develop a mathematical model for total cost of producing x paiars of shoes. b. Let P indicate the total profit. Develop a mathematical model for the total profit realized from an order for x pairs of shoes. c. How large must the order be for Marikina to breakeven?
- Cool Boards manufactures snowboards. Its cost of making 2,100 bindings is as follows: (Click the icon to view the costs.) Suppose Hemingway will sell bindings to Cool Boards for $16 each. Cool Boards would pay $3 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.40 per binding. Requirements 1. Cool Boards' accountants predict that purchasing the bindings from Hemingway will enable the company to avoid $2,400 of fixed overhead. Prepare an analysis to show whether Cool Boards should make or buy the bindings. 2. The facilities freed by purchasing bindings from Hemingway can be used to manufacture another product that will contribute $3,500 to profit. Total fixed costs will be the same as if Cool Boards had produced the bindings. Show which alternative makes the best use of Cool Boards' facilities: (a) make bindings, (b) buy bindings and leave facilities idle, or (c) buy bindings and make another product. Print - X Done Data…Hazel Company makes an unassembled product that it currently sells for $55. Production costs are $20. Hazel is considering assembling the product and selling it for $68. The cost to assemble the product is estimated at $12. What decision should Hazel make? A) Sell before assembly; net income per unit will be $12 greater. B) Sell before assembly; net income per unit will be $1 greater. C) Process further; net income per unit will be $13 greater. D) Process further; net income per unit will be $1 greater. 24 E) none of the aboveUse this information for Carmen Co. to answer the question that follow. Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $23.05 per pound and costs $14.35 per pound to produce. Product D would sell for $40.95 per pound and would require an additional cost of $10.35 per pound to produce. What is the differential cost of producing Product D? a.$6.21 per pound b.$10.35 per pound c.$12.42 per pound d.$8.28 per pound
- Red Hawk Enterprises sells handmade clocks. Its variable cost per clock is $6.50, and each clock sells for $16.00. Required: Calculate Red Hawk's unit contribution margin. Calculate Red Hawk's contribution margin ratio. Suppose Red Hawk sells 2,050 clocks this year. Calculate the total contribution margin. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Suppose Red Hawk sells 2,050 clocks this year. Calculate the total contribution margin. Note: Round your answers to 2 decimal places.Winter Sports manufactures snowboards. Its cost of making 1,800 bindings is as follows in the data table. Suppose Livingston will sell bindings to Winter Sports for $14 each. Winter Sports would pay $1 per unit to transport the bindings to its manufacturing plant, where it would add its own logo at a cost of $0.60 per binding.Refer to the data in Required 6. Assume the outside supplier will accept an order of any size for the tubes at a price of $1.90 per box. How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the outside supplier?