Tenny Inc. is planning to sell 50,000 units of its products next year. Fixed costs will total

Question:

Tenny Inc. is planning to sell 50,000 units of its products next year. Fixed costs will total €6 million, and the variable costs are planned to be 60 percent of the sales.

a. The firm wants to achieve a level of EBIT of €400,000. What selling price per unit is necessary to achieve this result?

b. Set up an analytical income statement to verify your solution to part (a).

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Foundations Of Finance

ISBN: 9781292155135

9th Global Edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

See More Books

Question Posted: Feb 21, 2024 05:01 AM

See More Questions

(Break-even point and selling price) Simple Metal Works, Inc. will manufacture and sell 180,000 units next year. Fixed costs will total $290,000, and variable costs will be 55 percent of sales. a....
Tenny, Inc. will manufacture and sell 50,000 units next year. Fixed costs will total $290,000, and variable costs will be 55 percent of sales. a. The firm wants to achieve a level of earnings before...
Case Study MysteryLab Inc: Producing Gaming Chairs to Match the Game Introduction This case is designed to assist the student to better understand how absorption costing, costvolume-profit analysis,...
Examine the major components of a marketing plan.
In Exercises 1-4, find all vertical and horizontal asymptotes of the graph of the function. 1. f (x) = 4 / x2 2. f (x) = 1 / (x - 2)3 3. f (x) = 5 + x / 5 - x 4. f (x) = 3 - 7x / 3 + 2x
Developing a strategy for a performance appraisal is an important step for any company, and keeping out political bias is a main concern as well. Unfortunately, many times there is no way around...
Discuss the purpose of the Emergency Medical Treatment and Active Labor Act.
Jackson Hole Manufacturing is a small manufacturer of plastic products used in the automotive and computer industries. One of its major contracts is with a large computer company and involves the...
1. As a Marketing researcher, you would like to establish the-cause-and-the-effect relationship between two variables X and Y (e.g., X causes Y). Explain why such a causal relationship is very hard...
King Inc. is a health wine company in China. The average selling price of its finished product is 38 Chinese Yuan Renminbi (RMB) per bottle (500 ml/bottle). The variable cost of the same bottle of...
Which of the following sources of new earnings volatility represents the effect of business versus financial risk (discuss the rationale for your decisions): a. Pajala AB in Sweden is considering...
In the IBM/370, memory protection is provided through the use of keys. A key is a 4-bit quantity. Each 2K block of memory has a key (the storage key) associated with it? The CPU also has a key (the...
Solve the equation. t t+4 t-4 -6
9. Given the cost and Revenue functions are C(x)=165+0.5.x R(x)=6x-0.05.x Determine the marginal profit.
Probability Scores 0.18 1 0.12 3 0.14 4 0.12 7 0.18 8 0.26 10 Find the expected value of the above random variable.
The population standard deviation for the temperature of beers found in Scooter's Tavern is 0 . 3 6 degrees. If we want to be 9 9 % confident that the sample mean beer temperature is within 0 . 1...
1. Explain the following concepts. a) marginal frequency b) cell probability c) expected frequency d) critical value of x JC
Discuss each of the four fundamental issues for potential conflict during the project formation stage.
Write a function that reads a Float24_t value: Float24_t float24_read(void) A legitimate float24 value string is of the form: "mantissabexponent" where the mantissa (m) and the exponent (e) may have...
Briefly explain which aspects of customer service you think would be most important for a producer that sells fabric to a firm that manufactures furniture.
Briefly describe a purchase you made where the customer service level had an e f fect on the product you selected or where you purchased it.
Discuss the types of trade-offs involved in PD costs, service levels, and sales.
What are some of the main assumptions that guide disciplinary research in the humanities, and how are these assumptions applied particularly to the 5 specific disciplines that fall under the...
Suppose the kohlrabi industry is a natural monopoly facing the following (inverse) market demand schedule: p=105-Q Its cost structure (.e., total cost schedule) is as follows: = TC 1500+10Q The...
How do NoSQL databases diverge from traditional relational databases in terms of data modeling paradigms, consistency models, and scalability architectures, and what are the implications for...

Tenny Inc. is planning to sell 50,000 units of its products next year. Fixed costs will total

Question:

Step by Step Answer:

a To achieve an EBIT of 400000 the firm needs to generate enough revenue to cover its fixed costs an...View the full answer

Foundations Of Finance

Students also viewed these Business questions