Can you answer/correct the variable cost portion for me please?
Figure in brackets in solution indicates that the amount should be deducted.
Can you answer/correct the variable cost portion for me please? You are considering a new product...
What are the best and worst case Variable cost? You are considering a new product launch. The project will cost $2,075,000, have a four- year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 220 units per year; price per unit will be $18,800, variable cost per unit will be $12,350, and fixed costs will be $610,000 per year. The required return on the project is 11 percent, and the relevant tax rate is...
You are considering a new product launch. The project will cost $940,000, have a 5-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 330 units per year; price per unit will be $15,935, variable cost per unit will be $11,900, and fixed costs will be $615,000 per year. The required return on the project is 12 percent and the relevant tax rate is 21 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $830,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 220 units per year; price per unit will be $16,425, variable cost per unit will be $11,350, and fixed costs will be $560,000 per year. The required return on the project is 9 percent and the relevant tax rate is 25 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $860,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 250 units per year, price per unit will be $16,500, variable cost per unit will be $11,500, and fixed costs will be $575,000 per year. The required return on the project is 12 percent and the relevant tax rate is 23 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $820,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 210 units per year; price per unit will be $16,400, variable cost per unit will be $11,300, and fixed costs will be $555,000 per year. The required return on the project is 12 percent and the relevant tax rate is 24 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $890,000, have a 5-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 280 units per year; price per unit will be $15,885, variable cost per unit will be $11,650, and fixed costs will be $590,000 per year. The required return on the project is 11 percent and the relevant tax rate is 21 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $800,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 190 units per year; price per unit will be $16,350, variable cost per unit will be $11,200, and fixed costs will be $545,000 per year. The required return on the project is 10 percent and the relevant tax rate is 22 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $910,000, have a 5-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 300 units per year; price per unit will be $15,905, variable cost per unit will be $11,750, and fixed costs will be $600,000 per year. The required return on the project is 9 percent and the relevant tax rate is 23 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $800,000, have a 4-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 190 units per year; price per unit will be $16,350, variable cost per unit will be $11,200, and fixed costs will be $545,000 per year. The required return on the project is 10 percent and the relevant tax rate is 22 percent. Based on your experience, you think the unit...
You are considering a new product launch. The project will cost $950,000, have a 5-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 340 units per year; price per unit will be $15,945, variable cost per unit will be $11,950, and fixed costs will be $620,000 per year. The required return on the project is 9 percent and the relevant tax rate is 22 percent. Based on your experience, you think the unit...