Business, 17.03.2020 04:41 TerronRice
Gordon's Steel Parts produces parts for the automobile industry. The company has monthly fixed expenses of $640,000 and a contribution margin of 95% of revenues. Gordon feels like he's in a giant squeeze play: The automotive manufacturers are demanding lower prices, and the steel producers have increased raw material costs. Gordon's contribution margin has shrunk to 65% of revenues. Gordon's monthly operating income, prior to these pressures, was $319, 500. Read the requirements. Requirement 1. To maintain this same level of profit, what sales volume (in sales revenue) must Gordon now achieve? Begin by identifying the formula to compute the sales in units at various levels of operating income using the contribution margin approach. (Fixed expenses + Operating income)/Contribution margin ratio = Target sales in dollars (Round your answer up to the nearest whole dollar.) Gordon must now achieve sales of $ to maintain the same level of profit.
Answers: 3
Business, 22.06.2019 01:00
Granby foods' (gf) balance sheet shows a total of $25 million long-term debt with a coupon rate of 8.50%. the yield to maturity on this debt is 8.00%, and the debt has a total current market value of $27 million. the company has 10 million shares of stock, and the stock has a book value per share of $5.00. the current stock price is $20.00 per share, and stockholders' required rate of return, r s, is 12.25%. the company recently decided that its target capital structure should have 35% debt, with the balance being common equity. the tax rate is 40%. calculate waccs based on book, market, and target capital structures. what is the sum of these three waccs?
Answers: 3
Business, 22.06.2019 10:00
Which term best fits the sentence? is the process of reasoning, analyzing, and making important decisions. it’s an important skill in making career decisions. a. critical thinking b. weighing pros and cons c. goal setting
Answers: 1
Gordon's Steel Parts produces parts for the automobile industry. The company has monthly fixed expen...
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