Current Attempt in Progress A beauty product company is developing a new fragrance named Happy Forever. There is a probability of 0.47 that consumers will love Happy Forever, and in this case, annual sales will be 1.04 million bottles; a probability of 0.39 that consumers will find the smell acceptable and annual sales will be 177,000 bottles; and a probability of 0.14 that consumers will find the smell unpleasant and annual sales will be only 51.000 bottles. The selling price is $38, and the variable cost is $11 per bottle. Fixed production costs will be $1.07 million per year, and depreciation will be $1.18 million. Assume that the marginal tax rate is 27 percent. What are the expected annual incremental after-tax free cash flows from the new fragrance? (Round answer to 0 decimal places, e.g. 5,275.) Annual incremental cash flows $

Current Attempt in Progress A beauty product company is developing a new fragrance named Happy Forever. There is a probability of 0.47 that consumers will love Happy Forever, and in this case, annual sales will be 1.04 million bottles; a probability of 0.39 that consumers will find the smell acceptable and annual sales will be 177,000 bottles; and a probability of 0.14 that consumers will find the smell unpleasant and annual sales will be only 51.000 bottles. The selling price is $38, and the variable cost is $11 per bottle. Fixed production costs will be $1.07 million per year, and depreciation will be $1.18 million. Assume that the marginal tax rate is 27 percent. What are the expected annual incremental after-tax free cash flows from the new fragrance? (Round answer to 0 decimal places, e.g. 5,275.) Annual incremental cash flows $

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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View Policies Show Attempt History Current Attempt in Progress Your answer is incorrect. Cullumber's Candles will be producing a new line of dripless candles in the coming years and has the choice of producing the candles in a large factory with a small number of workers or a small factory with a large number of workers. Each candle will be sold for $10. If the large factory is chosen, the cost per unit to produce each candle will be $3.60. The cost per unit will be $7.50 in the small factory. The large factory would have fixed cash costs of $2.30 million and a depreciation expense of $300,000 per year, while those expenses would be $470,000 and $100,000, respectively, in the small factory. Calculate the pretax operating cash flow break-even point for both factory choices for Cullumber's Candles. (Round answers to nearest whole units e.g. 152.) pretax operating cash flow breakeven point for the large factory is units and for the small factory is eTextbook and Media Save for Later Last…
An internet company wants to launch a specialty sports channel in 2020. The company conducted research that indicates they can achieve a trat rate of 10%. The compa 70% and generate an awareness of 50%. The target population is 1,200,000 milion people. a. What is the sports channel adjusted trial rate? b. What is the sports channel trial population? C. The company now expects there will be a repeat rate of 15% in the first year. How many repeat consumers will there be?
Bubbly Waters currently sells 440 Class A spas, 590 Class spas, and 340 deluxe modeſ spas each year. The firm is considering adding a mid-class spa and expects that if it does, it can sell 515 units per year. However, the new spa is added, Class A sales are expected to decline to 295 units while the Class C sales are expected to increase to 615. The sales of the deluxe model will not be affected. Class A spas sell for an average of $14,700 each. Class C spas are priced at $7,400 and the deluxe models sell for $18,400 each. The new mid-range spa sell for $9,400. What annual sales figure should you use in your analysis?
am. 133.
Mme. Giselle's boutique in Cleveland, Ohio is planning to sell a Parisian frock. If the public view it as being the latest style, the frocks will be worth $12,000. However, if the frocks are viewed as passe, they will be worth only $3,000. If the probability that they are stylish is 10%, what is the expected value of the frocks? The expected value of the frocks (EV) is EV $ (Enter your response rounded to two decimal places.)
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Sampson Corporation is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence are shown next: Possible Market Reaction Low response Moderate response High response Very high response Sales in Units 40 Probabilities 0.30 70 0.20 90 120 0.20 0.30 a. What is the expected value of unit sales for the new product? Note: Do not round Intermediate calculations and round your answer to the nearest whole unit.) Answer is complete but not entirely correct. Expected value 70 units b. What is the standard deviation of unit sales? Note: Do not round Intermediate calculations. Round your answer to 2 decimal places. Answer is complete but not entirely correct. Standard deviation 19.24 units
Meditation Haven has three product lines. Its only unprofitable line is yoga blocks. The results of the yoga blocks line for 2020 is below:Sales 350000 Variable expenses 230000 Fixed expenses 180000 Net loss (60000) If this product line is eliminated, 70% of the fixed expenses can be eliminated. Using incremental analysis, would you recommend the company drop the yoga block line and why?
Nikul
The cost of introducing the products in selected geographic areas for gauging consumer response is $150K. If the company decides to introduce the product this way, it would need to see the responses to the products before they decide to launch the product line nationally. The probability of a favorable response in the selected geographical areas is estimated at O.60. La Comida can also decide not to go for the launching in the product in selected geographical areas and go ahead with the nationwide launch or not. If La Comida Foods decides to go full-blast in launching the products nationally and are a success, the company estimates that they will gain an annual income of $1.6 million. If the products are not a hit, the company will realize losses to the tune of $700K. La Comida estimates the probability of success for the sauces and marinades to be 0.50, if these are introduced without gauging consumer response.
View Policies Current Attempt in Progress Bramble Cheese Company has developed a new cheese slicer called Slim Slicer. The company plans to sell this slicer through its online website. Given market research, Bramble believes that it can charge $40 for the Slim Slicer, Prototypes of the Slim Slicer, however, are costing $43. By using cheaper materials and gaining efficiencies in mass production, Bramble believes it can reduce Slim Slicer's cost substantially. Bramble wishes to earn a return of 40% of the selling price. (a) Compute the target cost for the Slim Slicer. Target cost $ eTextbook and Medial
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