A manufacturer of Virtual Reality headsets has seen sales increase from 25,000 units per year to...
A manufacturer of Virtual Reality headsets has seen sales increase from 25,000 units per year to 100,000 units per year in 8 years. What has been the firm's average annual rate of increase in the number of television sets sold? Use the Rule of 72 to determine your answer.
|
The average annual rate of change has been between 10% and 11%. |
||
|
The average annual rate of change has been between 18% and 19%. |
||
|
The average annual rate of change has been between 15% and 16%. |
||
|
There is not enough information to answer this question. |
Homework Answers
As sales has quadrupled in 8 years, that mean sales doubled in 4 years.
So using Rule of 72, rate of interest to double the return in t years = 72/t
So, r = 72/4 = 18%
So, option B is correct
Add Answer to:
A manufacturer of Virtual Reality headsets has seen sales
increase from 25,000 units per year to...
Units Sold (in thousands) Year 1 Year 2 Year 3 Average Selling Price Year 1 Year...
Units Sold (in thousands) Year 1 Year 2 Year 3 Average Selling Price Year 1 Year 2 Year 3 Profitability by Advertising Intensity Profits in millions) Year 1 Year 2 Year 3 Advertising Intensity High $20 $ 80 $300 Moderate 40 80 135 75 110 118 10 5 60 12.5 120 25 7.2 $35,000 35,800 35,900 $36,500 $38,000 36,100 36,300 36,250 36,000 Low 4 6 17. The head of the accounting department at a major software manufacturer has asked you...
PDQ, Inc. expects EBIT to be approximately $11 million per year for the foreseeable future, and that it has 25,000 20-ye...
PDQ, Inc. expects EBIT to be
approximately $11 million per year for the foreseeable future, and
that it has 25,000 20-year, 8 percent annual coupon bonds
outstanding. (Use Table 11.1.)
What would the appropriate tax rate be for use in the calculation
of the debt component of PDQ’s WACC?
table 11.1 Corporate Tax Rates Tax Rat Taxable Income $0 - $50,000 50,001 - 75,000 15% 75,001 100,000 100,001 - 335,000 335,001 - 10,000,000 10,000,001 - 15,000,001 - 15,000,000 18,333,333 38...
You purchase a car that has an initial cost of $25,000. Property tax on the car...
You purchase a car that has an initial cost of $25,000. Property tax on the car will be $500 when you purchase the car and will decrease by 5% per year because the county estimates that the tax value will depreciate. Fuel cost in the first year is $1,050 and is estimated to increase by $125 per year because of expected increases in fuel cost. The cost to insure this car with you as the driver is estimated to be...
Suppose General Surplus Corporation sells personal copying machines at the rate of 1000 units per year....
Suppose General Surplus Corporation sells personal copying machines at the rate of 1000 units per year. The cost of placing one order is $180, and it costs $100 per year to carry a copier in inventory. Which of the below statements is false? Group of answer choices The number of orders per year is 17 (rounded to the nearest integer), and the time interval between orders is 22 days (rounded to the nearest integer) . The average inventory is 30...
Demand for a new product is estimated as 50,000 units next year (year 2) and is...
Demand for a new product is estimated as 50,000 units next year (year 2) and is expected to grow at 5% per year for the next 10 years (years 2 to 11). The management needs to decide the capacity of a new factory to be built for this product. Following data have been collected: Size Annual capacity (units) Building cost Annual operating cost Small 50,000 $800,000 $20,000 Medium 60,000 $900,000 $25,000 Large 70,000 $1,000,000 $30,000 The factory with take 1...
vable changes without bad debts Tara's Textiles currently has credit sales of $361 million per year...
vable changes without bad debts Tara's Textiles currently has credit sales of $361 million per year and an average collection period of 60 days. Assume that the price of Tara's products is $59 per unit and that the variable costs are $54 per unit. The firm is considering an accounts receivable change that will result in a 20.6 % increase in sales and a 19.6 % increase in the average collection period. No change in bad debts is expected. The...
A local family sports store sells basketball. The store orders the balls from a manufacturer at...
A local family sports store sells basketball. The store orders the balls from a manufacturer at a cost of $250 per order. The annual holding cost is $6 per unit per year. The purchase price of a basketball is $40 per unit per year. The store has a demand for 48,000 balls per year. The s tock is received 5 working days after an order has been placed. No backorders are allowed. Assume 300 working days a year. a. What...
James & Co., which has excess capacity, received a special order for 4,000 units at a...
James & Co., which has excess capacity, received a special
order for 4,000 units at a price of $18 per unit. Currently,
production and sales are budgeted for 25,000 units without
considering the special order.
Budget information for the current year is presented below:
Sales
$
900,000
Less: Cost of goods
sold 600,000
Gross margin
$ 300,000
Less: Operating
expenses 200,000
Net income
...
please give a written answer, please do not use excel as it has to be written...
please give a written answer, please do not use excel as it has
to be written out. thank you.
Your company is considering expanding operations and buying a new machine to handle the increased volume. The machine's basic price is $100,000, and it will cost another $15,000 to modify it for special use by your firm. The machine falls into the MACRS three-year class, and it will be sold after three years for $15,000. Use of the machine will require...
Apple is considering a replacement machine that has a cost of $25,000. The new machine will permit...
Apple is considering a replacement machine that has a cost of $25,000. The new machine will permit output expansion, so annual revenues are estimated at $5,000 during its operating period. The new machine's greater efficiency is expected to reduce operating expenses by $3,000 per year. This machine has an estimated useful life of 5 years and will be depreciated using a straight-line basis. The machine will cause a change in working capital of $3,000 per year. California's marginal tax rate is 40% and its...
Units Sold (in thousands) Year 1 Year 2 Year 3 Average Selling Price Year 1 Year 2 Year 3 Profitability by Advertising Intensity Profits in millions) Year 1 Year 2 Year 3 Advertising Intensity High $20 $ 80 $300 Moderate 40 80 135 75 110 118 10 5 60 12.5 120 25 7.2 $35,000 35,800 35,900 $36,500 $38,000 36,100 36,300 36,250 36,000 Low 4 6 17. The head of the accounting department at a major software manufacturer has asked you...
PDQ, Inc. expects EBIT to be
approximately $11 million per year for the foreseeable future, and
that it has 25,000 20-year, 8 percent annual coupon bonds
outstanding. (Use Table 11.1.)
What would the appropriate tax rate be for use in the calculation
of the debt component of PDQ’s WACC?
table 11.1 Corporate Tax Rates Tax Rat Taxable Income $0 - $50,000 50,001 - 75,000 15% 75,001 100,000 100,001 - 335,000 335,001 - 10,000,000 10,000,001 - 15,000,001 - 15,000,000 18,333,333 38...
vable changes without bad debts Tara's Textiles currently has credit sales of $361 million per year and an average collection period of 60 days. Assume that the price of Tara's products is $59 per unit and that the variable costs are $54 per unit. The firm is considering an accounts receivable change that will result in a 20.6 % increase in sales and a 19.6 % increase in the average collection period. No change in bad debts is expected. The...
James & Co., which has excess capacity, received a special
order for 4,000 units at a price of $18 per unit. Currently,
production and sales are budgeted for 25,000 units without
considering the special order.
Budget information for the current year is presented below:
Sales
$
900,000
Less: Cost of goods
sold 600,000
Gross margin
$ 300,000
Less: Operating
expenses 200,000
Net income
...
please give a written answer, please do not use excel as it has
to be written out. thank you.
Your company is considering expanding operations and buying a new machine to handle the increased volume. The machine's basic price is $100,000, and it will cost another $15,000 to modify it for special use by your firm. The machine falls into the MACRS three-year class, and it will be sold after three years for $15,000. Use of the machine will require...
Most questions answered within 3 hours.
-
High Normal blood pressure is categorized as which of
the following?
140-159/90-99
120/80
130-139/85-89
160/100
asked 1 minute ago -
Please I need help with MATLAB .. PLease help me . Thankyou
Write Matlab code to...
asked 1 minute from now -
You are saving towards purchasing a house and currently have
$20,000 in an account that earns...
asked 8 minutes ago -
Draw three resonance structures for each of
the following:
(a) -CH2NO2 (b) CH3CO2CH3
(c) -CH2CO2- (d)...
asked 15 minutes ago -
There has been discussion about people moving from Earth to Mars
in the future. An organization...
asked 14 minutes ago -
Starting Out with c++ Student Line Up Using Files A teacher has
asked all her students...
asked 16 minutes ago -
Two point charges totaling 9.00 µC exert a repulsive force of
0.200 N on one another...
asked 17 minutes ago -
In Visual Studio 2017
Populate a two-dimensional array with the following prices in
this table order:...
asked 27 minutes ago -
Answer below in detail
1. Reverse Logistics - Introduction
2. The world before and after reverse...
asked 32 minutes ago -
Find the area of the shaded region. The graph to the right
depicts IQ scores of...
asked 43 minutes ago -
1887, Barnes, a physician living in Carlilse, Cumberland NW
England reports on a case of food...
asked 46 minutes ago -
A spring is characterized by a spring constant of 60 N/m. How
much potential energy does...
asked 44 minutes ago