How many years will it take for $197,000 to grow to be $554,000 if it is invested in an account with a quoted annual interest rate of 8% with monthly compounding of interest? 8. At what quoted annual interest rate must $134,000 be invested so that it will grow to be $459,000 in 15 years if interest is compounded weekly? 9. An annuity pays $24,000 per year for 11 years (first payment one year from today).
A company offers a starting yearly salary of $33,000 with a raise of $2,500 per year. Find the total salary over a 10-year period. an = a1 + (n - 1)*d, [where n = 10 years; a1 = $33,000; d = $2,500] a10 = 33,000 + (10 - 1) * 2,500 a10 = 33,000 + (9) * 2500 a10 = 33,000 + 22,500 a10 = 55,500 The total salary over a 10-year period will be $55,500. 7. Suppose you have $1 the first day of a month, $5 the second day, $25 the third day, and so on.
SciTronics had a total of $ 102,000 (75,000 + 27,000) of capital at year-end 2008 and earned before interest but after taxes (EBIAT) $ 16,120 (avg. tax rate = 38%) during 2008. Its return on capital was 15.8% in 2008 which represented an increase from the 8.7% earned in 2005. 4. SciTronics had $ 75,000 of owners’ equity and earned $ 14,000 after taxes in 2008.
3(x 1 1)(x 2 4) 15. 3(3x 2 1)(3x 1 1) 16. 4(2x 1 1)(x 2 3) 17. 2(2x 1 3)(2x 1 3) 18. 5(3x 1 2)(2x 2 1) 3 1 1 1 2 } } } } } 19.
Using information given in question C, the $16,200 in new machinery will be divided up over 36 months. This additional cost will add $450 per month to Molly’s fixed costs, bringing her total to $2,150 monthly. With that given information, Molly would need to clean an additional 529 items a month to break even. The answer was derived by using the following equation: $2,150 ÷ (1.1 – $0.25) – 2000 = 529.412
We make 30,000 of these fire extinguishers per year. Each extinguisher requires one handle (assume a 300 day work year for daily usage rate purposes). Assume an annual carrying cost of $1.50 per handle; production setup cost of $150, and a daily production rate of 300. What is the optimal production order quantity? (4 points) Problem 4: We need 1,000 electric drills per year.
The ratio of the lengths of the sides is 4:14. What are the lengths of the sides? 36. ABCD~EFGH. The perimeter of ABCD is 16.
HEALTHY SPRING WATER COMPANY DEFINING THE PRICE-VOLUME TRADEOFF FOR A 20% PRICE INCREASE The Healthy Spring Water Company sells bottled water for offices and homes. The price of the water is $20 per 10 gallon bottle and the company currently sells 2000 bottles per day. Following is the company's income and costs on a daily basis. Sales revenue $40,000 Incremental Variable cost $16,000 Nonincremental Fixed cost $20,000 The company is enjoying stable demand with its current pricing, but management is looking for ways to increase profitability. One suggestion is that the company reposition its water as a premium product, justifying a higher price.
1 - What sales volume is required to break even on Classic Knitwear's 2-year marketing investment? Licensing fee - $100,000 (Year 1) (5% of net sales after Year 1) Licensing Fee2 = (N/2)*.05* gross margin (Assuming N is spread evenly) Salary = $255,000 per year (3 salary employees) $510,000 for two years Total Marketing Investment = $3 million for two years (In part Advertising = $1.2 million total for 2 years) Total Fixed Costs = $3,610,000 + Licensing Fee2 Average Manu Cost per case = $428.88 (5% off-invoice trade promotion) Average Manu Cost per case w trade promo = $407.44 (20% orders receive 10% advertising allowance) Average Manu Cost per case w trade promo and allowance = $364.55 Average cost for display [6 cases w promo inc] = ($407.44 * 6) + $100 = $2,544.64 Average cost for display [above with adv promo] = ($364.55 * 6) + 100 = $2,287.30 N = Total displays needed Total Fixed Costs + Licensing Fee2 = 0.80($886.56 * N) + 0.20($629.22 * N) + ($100 * N) = 709.248N + 125.844N + 100N $3,610,000 + [(0.05*7.05)/2] N = 935.092N $3,610,000 = 935.092N – 0.17625N $3,610,000 = 934.91575N N = 3,861.31, so 3,861 displays needed to break even (555,984 average amount of shirts) 2 - If Classic Knitwear implements all of Miller's marketing recommendations, what is the estimated demand for the new product line over the 2-year launch period? Remember that Miller's expectations when forecasting will be influenced by his prior experience. Tip a: Breakeven Point = Fixed Costs/(Unit Selling Price - Variable Costs). Tip b: Unit Contribution Margin = Unit Selling Price - Variable Costs.
P/E Ratio Model and Future Price Walmart (WMT) recently earned a profit of $3.13 per share and has a P/E ratio of 14.22. The dividend has been growing at a 12.5 percent rate over the past few years. If this growth continues, what would be the stock price in five years if the P/E ratio remained unchanged? C. $80.20 Pn = (P/e) * E0 * (1+g)n P5 = (14.22) * 3.13 * (1+.125)5 = 80.2059 7. Expected Return The Buckle (BKE) recently paid a $0.90 dividend.