A lawnmower manufacturer has the following loss distribution andits annual products liability costs. Assume all loading and otherexpenses are all equal to zero. What is the premium for a policythat has a no deductibles but has $700,000 policy limit?P(L) L0.9840.010 $50,0000.004 $250,0000.002 $750,000$3,100.00O $2,400.00O $1,900.00O $2,900.00O $1,300.00$0

A policy limit is the amount of money an insurance provider will disburse for a single claim or for…

Answered: A lawnmower manufacturer has the…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs

Section: Chapter Questions

Problem 1EP

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Consider the case of the Cast Iron Company. On each nondelinquent sale, Cast Iron receives reveneues with a present value of $1,260 and incurs costs with a present value of $1,000. Cast Iron's costs have increased from $1,000 to $1,110. Assuming there's no probabililty of repeat ordes and that the probability of successful collection from the customer is p=0.95, A) What is the expected profit of granting credit? (don't round intermediate calculations. Round answer to 2 decimals) B) What is the break-even probability of collection?
A TV costs 567.5 OMR including 13.5% tax. Find the price if the tax is reduced to 5%. Select one: O a. 540 OMR ов 500 ОMR O . 595.875 OMR O d. 900 OMR e. None of the above
Crazy Cliff’s Computers (CCC) purchases computer parts from its suppliers 2/5, net 30. What is the effective annual cost of not taking the trade discount? Select one: a. 2.00% b. 2.04% c. 27.43% d. 34.31% e. None of the above.
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H. K 35 36 TABLE A TABLE B Annual Fixed Costs (TL) Marketing, Selling and Distribution Expenses Low Option High Option 725,000.00 37 Annually Estimated Annually Estimated Sales Administration Expenses 1,250,000.00 38 Sales 30,000.00 1,285.00 15,000.00 1,443.00 39 Price (TL) $4 Price (TL) 2$ R&D 379,000.00 40 Direct Fixed Costs 4,750,000.00 41 Materials Number Required Unit Costs (TL) Materials Number Required rqaaS 42 Stove 1 172.25 Stove 1 202.25 43 Oven 1 242.15 Oven 1 252.15 TAX RATE 44 Display Screen 45 Driver 1 19.25 Display Screen 2 36.24 2 18.10 Driver 2 18.10 20% 46 Electronic Card 1 11.97 Electronic Card Bluetooth 1 11.97 47 Bluetooth 1 11.16 1 11.16 48 Fan 2 7.99 Fan 8 7.99 49 Light Bulb 1 Light Bulb Smart Connectivity 4.99 5.99 50 39.99 51 Direct Labor Costs 85.32 52 Packaging Cost Per 49.27 Direct Labor Costs 10% Increase from LowOption's Direct Labor Cost Increase from LowOption's Packaging Cost 53 Packaging Cost Per Unit 4% 54 Instructions Answers
Malume Ltd manufactures and sells a special cellphone for $20. The summarized income statement from 2019 is as follows $ $ Sales 800 000 Direct materials 120 000 Direct wages 160 000 Variable production over heads 80 000 Fixed administration over heads 75 000 Fixed production over heads 100 000 Fixed selling and distribution over heads 60 000 595 000 Net profit before tax 205 000 Less provision for tax (40%) 82 000 Net profit after tax 123 000 Required a) Calculate the break-even point in dollars and in units for 2019 b) Determine the number of units to sell in 2020 in order to achieve after profit of $150 000 c) Calculate the sales value required to achieve a net profit before tax of 15% of total revenue
1. Jeff Music sells its brand of banduria at $167.00 each. The company spends costs of $38.00 to produce each banduria. The corresponding weekly fixed costs are $16,900.00. a. What is the linear equation of the weekly profit, P, to the quantity of banduria produced, X. b. Determine the break-even quantity? c. What is the break-even revenue? d. What will be the profit or loss if there will be 147 qty of banduria?
Question 4: Dhofar Company manufactures twoproducts M1 and Z1. Its sales department has three divisions: Salalah, Raysut and Mirbat. T Initial estimates for the sales budgets for the year ending 31. December 2021 which are based on theassessments of the divisional executives are as follows; Product M1: Salalah 45,000 units: Raysut 110,000 units and- Mirbat: 25,000 units| Product Z1: Salalah 70,000 units: Raysut 82,000 units and- Mirbat:0| Sales Prices: M1: 3 OMR and Z1= 4 OMR in all areas. Arrangements are made for the extensive advertising of product M1 and Z1 and it is estimated that Salalah division: sales will increase by 30,000 units. Arrangements are also made to advertise and distribute product z1 in the Mirbat area· in the second half of 2021 when salesare expected to be 100,000 units.¶ Since the estimated sales of the Raysut division represented· an unsatisfactory target, it is agreed to increase both the estimates by 15-%. Prepare a sales budget for the year to 31 December…
Solve for the annual worth method.
17. Jolo Corporation wants to revise the sales commission payment scheme. Currently, the 4 sales person receive a monthly salary of P5,000 each and a P5 for every unit sold. The new payment scheme will require the company to pay each sales person a monthly salary of P10,000 and an additional P3 for every unit sold. What is the number of units sold wherein the company will be indifferent between the two payment scheme? OA. 10,000 units OB. 8,571 units O C. 2,500 units OD. None of the above
XYZ manufactures a computer stand. It has fixed costs of $600,000 and each stand sells for $90, with a variable cost of $ 48 per unit. If manufactures sells 13,000 stands, what would be the profit? a. 54000 Loss b. С. 240000 proſil d. 240.000 profit

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