FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. A firm plans to make a change that will increase sales from 16,ooo desks to 18,000 desks and increase its average collection period from

image text in transcribed

2. A firm plans to make a change that will increase sales from 16,ooo desks to 18,000 desks and increase its average collection period from 31 days to 40 days. The price per unit is $95 and the variable cost per unit is $82. The required return on similar-risk investments is 13%. What is the additional profit contribution from this change

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bitcoin Cash What You Need To Know About Bch

Bitcoin Cash What You Need To Know About Bch

Authors: Alexander O. M.

1st Edition

1976721229, 978-1976721229

More Books

Students also viewed these Finance questions

Question

★★★★★
Assume a Roots outlet store began August 2014 with 40 units of inventory that cost $30 each. The sale price of these units was $60. During August, the store completed the following inventory...

Answered: 1 week ago

Question

★★★★★
6. The JIT movement has long argued that firms should a. Maximize their process flexibility so that ordering costs are minimal; b. Stabilize demand levels; c. Shrink lead times as much as possible;...

Answered: 1 week ago

Question

★★★★★
=+your average total cost increased or decreased? Why? c. Suppose instead that you could produce one more (the fifth) widget at a marginal cost of $20. If you do produce that fifth widget, what will...

Answered: 1 week ago

Question

★★★★★
1. Describe some of Rick Federicos personal leadership traits. 2. Choose three of the leadership managerial roles and explain how Rick Federico might use them as head of P.F. Changs.

Answered: 1 week ago

Question

★★★★★
2. A firm plans to make a change that will increase sales from 16,ooo desks to 18,000 desks and increase its average collection period from 31 days to 40 days. The price per unit is $95 and the...

Answered: 1 week ago

Question

★★★★★
The correct answer is D. How do you get this? 3. (5 points.) In the multiplexor below, So is the low order bit and S is the high order bit. What is the output when So 1 and Si 0 D C B A S1 (A) A (B)...

Answered: 1 week ago

Question

★★★★★
The potential labour hours available for a large energy complex were found to be 5.4 million hours. The non-productive activities expressed in thousands of labour hours were: 360 for holidays and...

Answered: 1 week ago

Question

★★★★★
use the APR formula to find the APR. Round to the nearest hundredth of a percent. &% Miguel purchased a hot tub costing $ by taking out an installment loan. He made a down payment of $1,300 and...

Answered: 1 week ago

Question

★★★★★
ABC Corp. has offered1.5 million shares having a total market value of $9 million for XYZ Corp. After the merger is announced, shares in ABC trade for $5.5 each. If ABC is condent about XYZ's value,...

Answered: 1 week ago

Question

★★★★★
Howard Saari was employed by Smith Barney, Harris Upham & Co., Inc., as an account executive beginning in July 1988. He alleges that his work was satisfactory at all times. According to Saari\'s...

Answered: 1 week ago

Question

★★★★★
Honey Corporation produces a single product. All materials are added at the beginning of production. On January 1, 2014, 10,000 units of the product were in process in the Refining Department, the...

Answered: 1 week ago

Previous Question Next Question