• Q : Demand and costs at various activity levels....
    Finance Basics :

    Iguana Company sells a single product. Iguana estimates demand and costs at different activity levels as follows:

  • Q : Relationships between price and demand....
    Finance Basics :

    Jackson Company is trying to find out the optimal price to charge for its PUNCH model. Jackson has fixed costs of $50,000 and the PUNCH has variable costs of $12.00 per unit. Jackson has determined

  • Q : What would be the impact on profits....
    Finance Basics :

    Normally, Costa has a variable cost of $280 per unit. The annual fixed cost of $2,000,000 would be unaffected by the special order. What would be the impact on profits if Costa were to accept this s

  • Q : Problem on cost-plus pricing....
    Finance Basics :

    The Pure Company utilizes cost-plus pricing with a 50% mark-up. The company is presently selling 100,000 units at $12 per unit. Each unit has a variable cost of $6.

  • Q : What price should be charged....
    Finance Basics :

    A company consists of $8.00 per unit in variable costs and $4.00 per unit in fixed costs at a volume of 50,000 units. If the company marks up total cost by 60%, what price must be charged if 60,000

  • Q : Production of a high-tech portable electronic storage device....
    Finance Basics :

    The chief engineer at Tech Deals has proposed production of a high-tech portable electronic storage device to be sold at a 30 percent markup above its full cost.

  • Q : Target costing methodology....
    Finance Basics :

    Several managers and employees from the cost accounting department and the marketing department are as well on the team to assess the product and find out the cost using a target costing methodology

  • Q : What would be the cost per item ordered....
    Finance Basics :

    If all costs were assigned to customers based on the number of items ordered, determine the cost per item ordered?

  • Q : What is the resulting in- stock probability....
    Finance Basics :

    Assume that an order-up-to level of 5 is established. Determine the resulting in- stock probability?

  • Q : Reviewing the inventory....
    Finance Basics :

    They review their inventory and place orders each and every two days, on the same day that they receive deliveries of new inventory. They operate 7 days a week. If they were to implement an order up

  • Q : Poisson distribution with a mean....
    Finance Basics :

    Radio Shack sells a 32GB flash drive. Weekly demand for the 32GB flash drive in one of their stores is Poisson distributed with a mean of 1.25. The store places orders weekly and there is a one wee

  • Q : Problem related to in-stock probability....
    Finance Basics :

    Demands are independent across the weeks. Orders are placed weekly and the lead time to receive an order is 1 week. They want to hold adequate cylinders to make sure a 99.75% in-stock probability.

  • Q : Minimizing the inventory....
    Finance Basics :

    What order upto level should Supreme select to minimize their inventory for ACola while accomplishing at least a 99.25% in-stock probability?

  • Q : What is the corresponding order-up-to level....
    Finance Basics :

    Assume that Jim is interested in making sure that the company instantly satisfies all employee salary requirements with a 95% probability. Determine the corresponding order-up-to level?

  • Q : Determining the booking limit....
    Finance Basics :

    To maximize the profits with Manuel's plan, what is the booking limit that must be set for low fare customers?

  • Q : Determining the payments....
    Finance Basics :

    If Jennifer Lee purchases a car for $2,500 and pays $1,000 down and the balance in 24 monthly payments, what will her payments be if the lender needs 12 percent compounded monthly?

  • Q : Earning the rate of interest....
    Finance Basics :

    If Matthew Wayne invests in the stock whose price rises from $78.35 per share to $100 per share over a five year period, Determine the rate of interest did he earn?

  • Q : Personal financial planning process....
    Finance Basics :

    Explain to Bill the goals and rewards of the personal financial planning method.

  • Q : Venture capital organization and angel investors....
    Finance Basics :

    Write down a short essay summarizing your research. Your report must cover the given: Description of the terms venture capital organization and angel investors;

  • Q : What is the t-bill yield....
    Finance Basics :

    You paid $98,000 for a $100,000 T-bill maturing in 120 days. If you hold it until maturity, determine the T-bill yield? Determine the T-bill discount?

  • Q : Investors required rate of return....
    Finance Basics :

    A money market security which consists of a par value of $10,000 sells for $8,816.60. Given that the security consists of a maturity of two years, determine the investor's required rate of return?

  • Q : Major economic expansion....
    Finance Basics :

    An analyst recently recommended that there will be a major economic expansion, that will favorably influence the prices of high-rated fixed-rate bonds, as the credit risk of bonds will decline as c

  • Q : Downgrading of bonds for a particular corporation....
    Finance Basics :

    Describe how the downgrading of bonds for a particular corporation influences the prices of those bonds, the return to investors which presently hold these bonds, and the potential return to other inv

  • Q : Interaction between bond and money markets....
    Finance Basics :

    Explain how would you rebalance your portfolio between the bonds and money market securities.

  • Q : Problem related to annual coupon payments....
    Finance Basics :

    Suppose the given information for an existing bond which gives annual coupon payments: Determine the present value of the bond?

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