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m_a_m_a [10]
4 years ago
10

The following data are available for the Northwestern Division of Dempsey, Inc. and the single product it makes. Average operati

ng assets $3,000,000
Annual fixed costs 560,000
Unit selling price 40
Variable cost per unit 24
How many units must the division sell each year to achieve an ROI of 16%?
Business
1 answer:
balandron [24]4 years ago
5 0

Answer:

65,000 units

Explanation:

Let the number of units be sold = x

Operating Income= Sales- Variable cost – Fixed Cost

Operating Income = 40x - 24x - 560,000

Operating Income = 16x - 560,000

Return on Investment = Operating Income / Net Operating Assets  

16% = (16x - 560,000  )/ 3,000,000

480,000 = 16x - 560,000

16x = 480,000 + 560,000

16x = 1,040,000

x = 65,000 units

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7 0
3 years ago
Rylan Industries is expected to pay a dividend of $5.70 year for the next four years. If the current price of Rylan stock is $31
PilotLPTM [1.2K]

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Explanation:

PV = Current Price = $31.27

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r = Equity cost of capital = 12%

FV = Price of Rylan's stock at the end of four years = ??

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PV = D [\frac{1 - \frac{1}{(1+r)^{N} } }{r} ] + \frac{FV}{(1+r)^{4} }

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8 0
3 years ago
The financial model that measures the current value of all cash inflows and outflows using management's minimum desired rate of
Anna [14]

Answer:

Net present Value (NPV)

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What does it mean to have liability for a company
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Customers with credit cards with no balance are more likely to have high assets and medium-low debt.

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Customers who are more likely to have medium and low credit often use credit cards, but do not leave a balance. They also have a savings account and a retirement account.

Thus, Customers with have credit cards with no balance are more likely to have high assets and medium-low debt.

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