XYZ Manufacturing produces a single product that sells for $105. Variable costs per unit equal $74. The company expects total fixed costs to be $97,000 for the next month at the projected sales level of 3,200 units. To improve performance, management is considering several alternative actions. Each situation is to be evaluated separately. Suppose that management believes that a 10% reduction in the selling price will result in a 10% increase in sales. If this proposed reduction in selling price is implemented:
a. operating income will decrease by $8,000.
b. operating income will increase by $8,000.
c. operating income will decrease by $16,000.
d. operating income will increase by $16,000.
Answers: 2
Business, 21.06.2019 22:30
Match the vocabulary word to the correct definition. 1. human resources department 2. job description 3. ethics 4. labor relations 5. occupational safety & health administration a. a detailed list of the functions and requirements for a position b. the exchange between the employer and employee c. principles that define appropriate conduct d. the government agency responsible for monitoring safety in the workplace e. the division of a business responsible for hiring, managing,maintaining, and firing the workforce
Answers: 1
Business, 22.06.2019 10:50
Bill dukes has $100,000 invested in a 2-stock portfolio. $62,500 is invested in stock x and the remainder is invested in stock y. x's beta is 1.50 and y's beta is 0.70. what is the portfolio's beta? do not round your intermediate calculations. round the final answer to 2 decimal places.
Answers: 2
Business, 22.06.2019 22:00
Miami incorporated estimates that its retained earnings break point (bpre) is $21 million, and its wacc is 13.40 percent if common equity comes from retained earnings. however, if the company issues new stock to raise new common equity, it estimates that its wacc will rise to 13.88 percent. the company is considering the following investment projects: project size irr a $4 million 14.00% b 5 million 15.10 c 4 million 16.20 d 6 million 14.20 e 1 million 13.42 f 6 million 13.75 what is the firm's optimal capital budget?
Answers: 3
Business, 22.06.2019 22:40
Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 10 percent, and that the maximum allowable payback and discounted payback statistics for the project are three and a half and four and a half years, respectively. use the irr decision to evaluate this project; should it be accepted or rejected
Answers: 3
XYZ Manufacturing produces a single product that sells for $105. Variable costs per unit equal $74....
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