Ask question

Ask question

All categories

3 years ago

6

Bruceco is planning on selling backpacks for $100 each. the company can buy the backpacks for $30.00 and have them customized fo

r $20.00 apiece. there is a one-time set up charge of $1,000 for customization. how many backpacks will bruceco have to sell in order to break even?

1 answer:

umka21 [38]3 years ago

4 0

100-30=70

70-20= 50

1000/50= 20 backpacks

You might be interested in

Kwan wants to open a new business in his own country, Singapore. He has decided on a form of licensing that will provide him wit

Sidana [21]

Answer:

A

Explanation:

Direct sales

3 0

3 years ago

Transactions involving the purchase and sale of fixed assets would be considered _______ activities.

ohaa [14]

Transactions involving the purchase and sale of fixed assets would be considered INVESTING activities.
Investing activities refers to those activities carried out by the company which involve sales or purchases of fixed assets such as building and equipment.

4 0

3 years ago

Productivity is generally more difficult to improve in the service sector than in the manufacturing sector. True False

Dvinal [7]

Answer: True

Explanation:

Productivity is the process of measuring an organization's ability to produce a good or service. While organizations that produce goods can point to the total finished number of products as evidence. It is difficult to improve the service sector's productivity, because of the following;

1. Service industries are labor-intensive

2. Measuring and monitoring service quality are difficult

3. Most service establishments are of small size

4. Using machine technology and labor-saving devices is difficult

4 0

3 years ago

LUVFINANCE, Inc. is estimating its WACC. It is operating at its optimal capital structure. Its outstanding bonds have a 12 perce

11111nata11111 [884]

Answer:

9.72%

Explanation:

Maturity = 34

Par-value = -1000

Coupon rate = 6%

Coupon PMT = -60

Value of bond = 1152

Semi-annual Yield = Rate(34, -60, 1162, -1000, 0, 0)

Semi-annual Yield = 5.00%

Annual Yield = 10%

Tax rate = 40%

After tax cost of debt = 10*(1-0.4)= 6%: Add: Flotation cost (5%) = 11%

Cost of preferred stock = Dividend/Price = 12/120 = 10%

Cost of equity = Risk free rate + Beta*Market risk premium

Cost of equity = 3.72 + 0.94*6

Cost of equity = 9.36%

Particulars Value per No of Market Weight Cost of Product

security securities value security

Bonds 1162 100000 116200000 0.15784 11 1.736213

P. stock 120 1000000 120000000 0.16299 10 1.62999

Equity 100 5000000 <u>500000000</u> <u>0.6792</u> 9.36 <u>6.35697</u>

736200000 1 <u>9.72317</u>

So, the WACC of the firm is 9.72%

3 0

3 years ago

Jane is not married and has no children she is 35 and owns here own home under which status is she most likely to file

uysha [10]

She would be most likely to file under SINGLE :)

Hope this helps

6 0

3 years ago