cost $350 per unit; fixed costs $4.86 million; quantity=76,000 units. Suppose the company believes all of its estimates are accurate only to within 116 percent. What values should the company use for the four variables given here when it performs its best- case and worst-case scenario analysis? Note: Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567. Scenario Base case Best case Worst case Unit Sales Unit Price Unit Variable Cost 1,130 S 350 76,000 $ Fixed Costs $4,860,000

cost $350 per unit; fixed costs $4.86 million; quantity=76,000 units. Suppose the company believes all of its estimates are accurate only to within 116 percent. What values should the company use for the four variables given here when it performs its best- case and worst-case scenario analysis? Note: Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567. Scenario Base case Best case Worst case Unit Sales Unit Price Unit Variable Cost 1,130 S 350 76,000 $ Fixed Costs $4,860,000

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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Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $1,260 per unit; variable cost $480 per unit; fixed costs = $4.99 million; quantity = 89,000 units. Suppose the company believes all of its estimates are accurate only to within ±22 percent. What values should the company use for the four variables given here when it performs its best- case and worst-case scenario analysis? Note: Do not round Intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567. Scenario Unit Sales Unit Price Base case 89,000 $ Unit Variable Cost 1,260 $ Fixed Costs 480 $ 4,990,000 Best case Worst case
paresh
Assume that the operations manager of a small semi-conductor manufacturer wants to run a Simulation model to better understand the uncertainties related to cost and demand for a particular product. He assumes that the total cost per month could be anywhere between $150,000 and $200,000 with equal likelihood. He also assumes that the demand is normally distributed with a mean of 5,000 items per month and a standard deviation of 1,000. Each item is sold for $95. a) Use the random numbers in the following table to simulate the costs, revenues and profits per month. Use Random Number A to generate the costs and Random Number B to generate the revenues per month and then calculate the profit as the difference between revenues and costs. Complete the table by reporting the minimum, maximum and average profit per month according to this simulation. Trial 1 2 3 4 5 6 7 8 9 10 you b) Can Random A 0.23 you 0.04 0.14 0.07 0.03 0.67 0.26 0.03 0.83 0.32 Cost Random B 0.75 0.89 0.82 0.33 0.96 0.67…
XYZ company is studying the profitability of a change in operation and has gathered the following information. Anticipated Operation: Fixed Costs: $38,000, Selling Price: $16 Variable Cost $10 and Sales (Unit 9,000. Current Operation: Fixed Costs: $48,000, Selling Price: $22 Variable Cost: $12. and Sales (Units): 6.000. Should XYZ company make the change? Select one: O a. No. because sales will drop by 3.000 units. Ob. Yes, the company will be better off by $4,000. OC.No bacause the company will be worse off by 522.000. Odtis impossible to judge because additional information is needed. Oe No because the company will be worse off by $4. 000. Tfredrosts of 5300 000. he company s considering increasing the price of its units to S65 per unit, If the price
Wildhorse Company is considering two alternatives. Alternative A will have revenues of $149,900 and costs of $103,900. Alternative B will have revenues of $184,300 and costs of $123,800. Compare Alternative A to Alternative B showing incremental revenues, costs, and net income. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Costs Net Income Alternative B Alternative A $ tA $ Alternative A is better than $ LA LA $ Alternative B LA LA $ Net Income Increase (Decrease)
What is the correct answer for the one incorrect one?
Cullumber Company is considering two alternatives. Alternative A will have sales of $158,500 and costs of $100,100. Alternative B will have sales of $180,900 and costs of $133,200. Compare alternative A with alternative B showing incremental revenues, costs, and net income. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Revenues Costs Net income $ $ Alternative A $ $ Alternative B $ $ Net Income Increase (Decrease)
Carla Vista Company is considering two alternatives. Alternative A will have revenues of $148.000 and costs of $104,200. Alternative Bwill have revenues of $188.000 and costs of $123.800. Compare Alternative A to Alternative B showing incremental revenues. costs, and net income. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses es (45)) Alternative Alternative B Net Income Increase (Decrease) Revenues Costs Net Income is better than 5 S
XYZ company is studying the profitability of a change in operation and has gathered the following information. Anticipated Operation: Fixed Costs: $38,000, Selling Price: $16, Variable Cost $10, and Sales (Units): 9,000. Current Operation: Fixed Costs: $48,000, Selling Price: $22, Variable Cost: $12, and Sales (Units): 6.000. Should XYZ company make the change? Select one Oa.No. because sales will drop by 3.000 units. Ob.Yes, the company will be better off by 54,000. 2E No. because the company will be worse off by $22,000. Od itis impossible to judge because additional information is needed. Oe.No. because the company will be worse off by 54.000.
Tomperance, inc. is studying marketing cost and sales volume, and has generated the following information by use of a scatter diagram and a least sauares regression analysis Regression Aralyss $750 $43,000 Scater Dagram Variabie cost per Unt so Tocal mondhy fCd cost 541500 Tomporance is now proparing an cstmate for monthly sales of 19,000 units. On the basis of the data presonted, compute the most accurate salos forocast possibie. O An amount other than those listed above. O $I84300. S176.700. O S172.200. O S1700.
the answer is incorrec
In each of the following cases, find the unknown variable. Ignore taxes. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Accounting Break-Even Unit Price Unit Variable Cost Fixed Costs Depreciation 106,000 $ 50 $ 40 $ 850,000 125,000 50 5,000,000 1,000,000 16,000 60 380,000 100,000

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