A manufacturer of ovens sells them for $1,370.00 each. The variable costs are $1,020.00 per unit. The manufacturer's factory has annual fixed costs of $2,460,000.00. Given the expected sales volume of 3,700 units for this year, what will be this year's net income? Round to two decimal places

A manufacturer of ovens sells them for $1,370.00 each. The variable costs are $1,020.00 per unit. The manufacturer's factory has annual fixed costs of $2,460,000.00. Given the expected sales volume of 3,700 units for this year, what will be this year's net income? Round to two decimal places

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A Mobile shop sells 5000 mobiles in a year and the sales is relatively constant throughout the year. These mobiles are purchased for SR 150.00 each, and the lead time is two days. The holding cost per mobile per year is 6% of the unit cost and the ordering cost per order is SR 37.50. There are 250 working days per year. Calculate the following: (i) What is the annual holding cost? (ii) In minimizing the cost, how many orders would be made each year? (iii) Given the EOQ, what is the total annual inventory cost (including purchase cost)? (iv) What is the time between orders? (v) What is the ROP?
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Tom's Trashbins Inc. has fixed costs of $225,530. The firm's sales are expected to be $427,772 this year if the firm sells 9,458 units. Variable costs amount to 41 percent of sales. What is the breakeven point in units for Tom's Trashbins? SET YOUR CALCULATOR TO 4 DECIMAL PLACES. ROUND TO THE NEAREST WHOLE NUMBER AT THE END. FOR EXAMPLE, IF YOUR ANSWER IS 8297.6901, ROUND TO 8298.
The selling of a product has been set at $300 per unit , and at that price the company expects to sell 1,000 units per year. The company requires a return of 20% p.a . On its investment of $ 1,250,000 in the product . What is the target cost per unit ?
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Please help me. Thankyou.

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