company is trying to ascertain the selling price per unit for their product. They know the OCF is €170,654, interest expense is €21,300, and fixed costs are €116,900. Variable costs are €25.89 per unit with 20,000 units expected to be sold. The tax rate is 34%. Fixed assets total €759,500 and are being depreciated straight-line to zero over seven years. What is the selling price per unit given this information
company is trying to ascertain the selling price per unit for their product. They know the OCF is €170,654, interest expense is €21,300, and fixed costs are €116,900. Variable costs are €25.89 per unit with 20,000 units expected to be sold. The tax rate is 34%. Fixed assets total €759,500 and are being depreciated straight-line to zero over seven years. What is the selling price per unit given this information
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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Question
A company is trying to ascertain the selling price per unit for their product. They know the OCF is €170,654, interest expense is €21,300, and fixed costs are €116,900. Variable costs are €25.89 per unit with 20,000 units expected to be sold. The tax rate is 34%. Fixed assets total €759,500 and are being
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€40.26
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€40.67
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€41.32
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€42.78
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None of the above.
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