JVH controls four independent firms that make special masks for covering facial burns. The firms sell to different geographical regions and do not transfer goods among themselves. They have identical linear cost functions as a function of mask production. Also, they all sell masks for the same price, $50, and pay sales commis
Following is some financial information for Dell Inc. 2005 2004 Revenues $49,205 $41,444 Net income 3,043 2,645 Total assets 23,215 19,311 Shareholder's equity 6,485 6,280 Cash flow from operations 5,310 3,670 Basic earnings per share 1.21 1.03 Book value per share 2.61 2.46 Closing stock price 33.44 23.86 Wh
Padong Re manufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2006 is available for Padong. Time Charges Material Loading Charges Technicians' wages and benefits $228,000 - Parts manager's salary and benefits - $42,500 Office employee's salary and benefits 38,000 9,000 Other overhead
I need help understanding this... 11. In September, Smith Company had the following financial statement amounts related to producing 1,000 units: Direct materials $30,000 Depreciation expense 12,000 Sales revenue 88,000 Direct labor 10,000 Rent expense 13,000 How much is contribution margin per unit? A) $48 B)
Jane Di is planning on opening a new wholesaling operation. Her target operating margin will be 48 percent of sales. Average annual sales are forcasted to be $3,550,000. a. How large can fixed cost be for the wholesaling operating and still allow the 29 percentage operating profit margin to be achieved? b. What is the br
Part 1 You are given the following information about a firm: The growth rate equals 8 percent; return on assets (ROA) is 10 percent; the debt ratio is 20 percent; and the stock is selling at $36. What is the return on equity (ROE)? Part 2 Retailers Inc. and Computer Corp. each have assets of $10,000 and a return on com
What might be some ways to keep a stable demand with a low profit margin in a given market?
Comfortable Mattress, Inc., has assets of $500,000 and turns over its assets 1.5 times per year. Return on assets is 12%. What is its profit margin (return on sales)?
What are the specific benefits to be derived from Gross Profit on Sales as opposed to Contribution Margin?
7. Jilk Inc.'s contribution margin ratio is 40% and its fixed monthly expenses are $40,000. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $120,000? Ans: $8,000 8. Data concerning Kardas Corporation's single product appear below
Identify one situation in a company, such as Wal-mart, that could benefit from contribution margin analysis. Discuss any difficulties you may have in obtaining the data to make the analysis. My required report is to be 4-5 pages in length - therefore if you could provide me with 2-3 pages - I should be able to elaborate on t
How do I get the contribution margin and how do I get the breakeven? See attached file for full problem description.
1) Mary Clark, a recent graduate of Clarion South University, is planning to open a new wholesaling operation. Her target operating profit margin is 26 percent. Her unit contribution margin will be 50 percent of sales. Average annual sales are forecast to be 3,250,000. a. How large can fixed cost be for the wholesaling opera
Gross Profit 2-3 a.Kevin Bacon and Pork Company had sales of $240,000 and cost of goods sold of $108,000. What is the gross profit margin (ratio of gross profit to sales)? b. If the average firm in the Pork industry had a gross profit of 60%, how is the firm doing? Profitable ratio 3.3 Franklin Mint and candy shop can o
2006 2005 Accounts receivable 267,500 230,000 Inventory 312,500 257,500 Total current assets 670,000 565,000 Intangible assets 50,000 60,000 Total assets 825,000 695,000 Current liabilities 252,500 200,000 Long-term liabilities 77,500 75,000 Sales 1,640,000 Cost of goods sold 982,500
The Merriam Company has determined that its return on equity is 15 percent. Management is interested in the various components that went into this calculation. You are given the following information: total debt/total assets = 0.35 and total assets turnover = 2.8. What is the profit margin?
My Company has determined that its return on equity is 15 percent. Management is interested in the various components that went into this calculation. You are given the following information: total debt/total assets = 0.35 and total assets turnover = 2.8. Showing the computation what is the profit margin?
Lemon Company had sales of $350,000 and a net income of $52,500. The company's invested capital is $656,250. What is the company's profit margin?
Wheat contract is traded on the Chicago Board of Trade (www.cbot.com) a. If you short 5 May 2005 contracts as 376, how many dollars must you deposit in your margin account (assuming you are a speculator and thus the "speculative" margin applies to you)? b. A day later, the price climbs to 379. What is your total profit or