You are a debt collector with a 1 in 8 chance of recovering the debt that is owed. If your average expenses for a collection are $3000, how much should you charge clients in order to break even?
You are a debt collector with a 1 in 8 chance of recovering the debt that...
A private university is considering how it should best go about recovering the outstanding tuition balances owed by students who leave the school. There are currently 100 students who left the school this quarter who owe an average of $6000 each to the university. The school has several options for how it can go about recouping the amount that these former students owe. First, it can immediately sell these debts to a third-party collections agency for 50 cents on the...
Problem 1: The cost of debt for firm XYZ is 6%. It's tax rate is 40%. The cost of retained earnings is 12% and the cost of external common equity is 14%. Retained earnings is $5000. The target capital structure calls for 45% debt and 55% equity. Compute the following: A. Retained earnings break point B. WACC below the RE break point C. WACC above the RE break point Problem 2: The firm referred to in problem #1 has 3...
Throughout the New Shoes Simulation you will have to evaluate your previous decisions as well as other Market data and information in order to make an informed decision for the current period. The break even analysis is a tool that can assist in setting the price for your athletic shoe during the various decision periods. Based on the market data and information presented in the simulation determine the break even analysis for your New Shoes company and the correlation to...
please explain
Lock P { [ Delete ] End Pg Dn 7 Home 8 1 9 Pg Up Enter 5 6 (c) How can Kramerica use the volume break-even point value calculated in part (a)? NOTE: The Excel spreadsheet can be very useful for this part as it performs many of these calcu- lations.) - (15 points). In other words: a. What types of recommendations would you make to Kramerica if the expected number of calculator sales is 32,000 over...
1, If there is a 20% chance we will get a -2% return, a 30% chance of getting a 6% return, and a 50% chance of getting 17% return. What is the expected rate of return for the investment? Please round your answer to the fourth decimal. If your answer is 1.11%, then you should input "0.0111". 2, Assume your grandparents deposit $268,402 into a bank account for you and will allow you to withdraw $71,275 at the end of...
3. As a logistics manager you are also responsible for selling your products and negotiate your selling prices. A local army unit places an order for 400 units of AK99 that you specially designed. Your cost structure is as follows: Material cost $60, labor cost $100 (based on 5 hours of labor @S20/hour), overhead cost is 50% of the labor and material costs, and profit is added as 20% of the three costs Based on the quality and usefulness of...
You manufacture office desks in your plant. The fixed costs for the plant is $20,000/year. The variable cost for each desk is $30. You sell the desks for $70. How many desks must you sell to break-even? if you want to make a profit of $10,000, how many desks must you sell? If the marketing department determines that the demand is 300 desks, how much would you have to charge to break-even?
You know that overall there is a 60% chance to observe birds engaging in a specific mating dance. You want to study this dance, so you need to know how many birds to observe to have a good chance to see it. How many birds would you need to observe to have a 95% chance of observing the dance? Let’s say your previous research has also shown that the same species in Florida dances for 8 minutes on average, with...
I propose a game of chance! 70% of the time you win nothing, 20% of the time you win $10, 9% of the time you win $100, and 1% of the time you win $1000. What is a fair price for this game - how much should you pay to match the expected value of this game?
1) You are a manager for Dan's Juice Barn—a small distributor with 3 juice lines. You have three juices--Apple, Orange, and Pear, with the following information: Г псег Price Unit Cost Last year Demand Apple $2.50 per liter $1.00 per liter 50,000 liters Orange $2.00 per liter $1.00 per liter 250,000 liters Pear $3.00 per liter $2.25 per liter 25,000 liters You have 3 salespeople who are paid $30,000 per year plus 10% commission on sales. You also spend an...