Lady M Case Valuation

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A retail store sells a popular cosmetic called Devine and the store manager was given $140,000 by the corporate office to improve store performance any way she thinks best. The "base case" information is a price of $28 per bottle, a contribution margin of 0.30, a customer defection rate of 17 percent, and a repurchase frequency of five times a year. These improvement funds could be used to (a) increase the contribution margin to 0.39 or (b) reduce the customer defection rate to 12 percent or (c) increase the repurchase frequency to six times per year. Assume all other variables remain at the base case level for each of the three improvement options. Use the Excel template VLC to calculate the VLC for each option and summarize your answers using the table below. Round your answers to the nearest cent. Contribution Repurchase Defection Margin Frequency Rate 0.30 5 17% The 0.39 5 17% 0.30 5 12% 6 17% $ (a) (b) Price $28 $28 $28 (c) $28 0.30 What is the best way to use $140,000 in…

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Havana Hats makes the world's best hats. Information for the last eight months follows: Month January February March April May June July August Number of Hats Produced 6,750 2,800 3,250 4,250 7,800 3,700 Intercept X Variable 1 6,150 6,800 r Suppose that Havana expects to sell 4,700 hats during the month of September and that each hat sells for $2.75. Havana performed a least-squares regression and obtained the following results: Total Cost $ 7,500 3,900 4,200 5,050 8,150 4,450 6,900 7,520 Coefficients 1,255.09 0.91 Contribution margin Required: Prepare Havana's contribution margin income statement for the month of September. Note: Round your answers to 2 decimal places. Havana Hats Contribution Margin Income Statement Month of September

(Use Calculator or Formula Approach) Suppose your company expects to increase unit sales of widgets by 15% per year for the next 5 years. If you concurrently sell 3 million widgets in one year, how many widgets do you expect to sell in 5 years?

What is the pro forma net income expected to be ?

The Best Appliances had the following revenue over the past five Wars, To predict revenues for 2018, The Best Appliances uses the average for the Past five years. The company’s breakeven revenue is $800,000 per year. What is The Best Appliance’s predicted margin of safety in dollars for 2018? $800,000 $0 $200,000  $100,000

B&B has a new baby powder ready to market. If the firm goes directly to the market with the product, there is only a 55 percent chance of success. However, the firm can conduct customer segment research, which will take a year and cost $1.18 million. By going through research, the company will be able to better target potential customers and will increase the probability of success to 70 percent. If successful, the baby powder will bring a present value profit (at time of initial selling) of $18.8 million. If unsuccessful, the present value payoff is only $5.8 million. The appropriate discount rate is 15 percent. Calculate the NPV for the firm if it goes to market immediately and if it conducts customer segment research. (Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.)

The Widget Co. currently sells 800 widgets per week for a price of $7.00 each. Their market research indicates that for each $0.50 increase in price they will sell 25 fewer widgets per week. What price should they charge to maximize sales income?

B&B has a new baby powder ready to market. If the firm goes directly to the market with the product, there is only a 55 percent chance of success. However, the firm can conduct customer segment research, which will take a year and cost $875,000. By going through research, B&B will be able to better target potential customers and will increase the probability of success to 70 percent. If successful, the baby powder will bring a present value profit (at time of initial selling) of $16.5 million. If unsuccessful, the present value payoff is $7.5 million. The appropriate discount rate is 13 percent.    Calculate the NPV for the firm if it conducts customer segment research and if it goes to market immediately. (Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.     Should the firm conduct customer segment research or go to the market immediately? multiple choice…

Calculate Disk City’s break-even point for the current year in number of video disks. What will be the company’s net income for the current year if there is a 15 percent increase in projected unit sales volume?

B&B has a new baby powder ready to market. If the firm goes directly to the market with the product, there is only a 65 percent chance of success. However, the firm can conduct customer segment research, which will take a year and cost $1.13 million. By going through research, B&B will be able to better target potential customers and will increase the probability of success to 80 percent. If successful, the baby powder will bring a present value profit (at time of initial selling) of $18.3 million. If unsuccessful, the present value payoff is $5.3 million. The appropriate discount rate is 13 percent. Calculate the NPV for the firm if it conducts customer segment research and if it goes to market immediately. (Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) Market immediately Research option Should the firm conduct customer segment research or go to the market immediately? O Market…

1. What is the​ company's current breakeven in units and in​ dollars? 2. If the company expects to sell 260 premium garage doors in the upcoming​ year, and it does not develop the software control​ system, what is its expected operating income from premium garage​ doors? 3. If the software control system were to be developed and​ implemented, what would be the​ company's new breakeven point in units and in​ dollars? 4. If the company expects to sell 260 premium garage doors in the upcoming​ year, and it develops the software control​ system, what is its expected operating income from premium garage​ doors? 5. If the company expects to sell 260 premium garage doors in the upcoming​ year, do you think the company should implement the software control​ system? Why or why​ not? What factors should the company​ consider? pop-up content ends PrintDone

C&D has a new baby powder ready to market. If the firm goes directly to the marketwith the product, there is only a 60 percent chance of success. However, the firm can conduct customer segment research, which will take a year and cost $550,000. By going through research, B&B will be able to better target potential customers and will increase the probability of success to 75 percent. If successful, the baby powder will bring a present value profit (at time of initial selling) of $26 million. If unsuccessful, the present value profit is only $4.2 million. Should the firm conduct customer segment research or go directly to market? The appropriate discount rate is 12 percent.   answer on an excel file

a. what is the EOQ for a firm that sells 5,000 units when the cost of placing an order is $5 and the carrying cost are $3.50 per unit? b. how long will  the EOQ last? how many orders are placed annually? c. as a result of lower interest rates, the finnancial manager determines the carrying cost are now $1.80 per unit. what are the new EOQ and annual number of objects?

Study the information given and answer the following questions independently:1. Use the contribution margin ratio to calculate the sales value required to break even.2. Calculate the margin of safety (as a percentage).3. Determine the sales volume required to achieve double the forecast operating profit for 2024.4. Suppose Tiffany Ltd is considering a R50 per unit decrease in the selling price of the product, with the expectation that this would increase the annual sales volume by 25%. Calculate the total Contribution Margin and Operating Profit/Loss.5. Determine the selling price per unit (expressed to the nearest cent) that would enable Tiffany Ltd to break even, if all 30 000 units are produced and sold.

What is your net dollar sales projection for this year?

Solve the following problem. Round dollar amounts to the nearest cent. Round other amounts to the nearest tenth. Write rates as percents to the nearest tenth of a percent.

! Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 105,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha $ 30 Beta Direct materials Direct labor $18 23 16 Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses 10 8 19 21 15 11 18 13 Total cost per unit $115 $87

What volume of sales (in dollars) must Disk City achieve in the coming year to maintain the same net income as projected for the current year if the unit selling price remains at $17? 2. In order to cover a 20 percent increase in the disk’s purchase price for the coming year and still maintain the current contribution-margin ratio, what selling price per disk must Disk City establish for the coming year?

Subject - account  Please help me.  Thankyou.

The BEP Company plans to market a new product. Based on its market studies, it estimates that it can sell 70,000 units in 2016. The selling price per unit is P20.00.   The variable cost ratio is 40% sales. The fixed cost is P60,000.00     1) Compute the Break-even point in:   a) units   b) in sales pesos 2) Assume desired profit is P140,000, compute for the volume of production 3) Compute for the break-even price