Question: 2. Using the information provided, estimate how much cash investment DermaCare will require until it can cover the costs of its Direct TV campaign. Use

2. Using the information provided,

estimate how much cash investment DermaCare will require until it can cover the costs of its Direct TV campaign. Use the excel sheet provided to come up with an estimate. Assume that: a. It will take 5-10 months until the product is ready to be sold and the cash burn rate is $120,000 per month. b. It costs Dermacare $14 to produce and stock each unit and the retail selling price is $50 c. Fortnightly cash spend on DRTV starts at $50,0000 a fortnight and peaks at $400,000 a fortnight at fortnight 5. d. From fortnight 5 onwards fortnightly DRV sales grows at 10%.

2. Using the information provided at the bottom of page 5 of the case, estimate how much cash investment DermaCare will require until it can cover the costs of its Direct TV campaign. Use the excel sheet provided to come up with an estimate. Assume that: a. It will take 5-10 months until the product is ready to be sold and the cash burn rate is $120,000 per month. b. It costs Dermacare $14 to produce and stock each unit and the retail selling price is $50 c. Fortnightly cash spend on DRTV starts at $50,0000 a fortnight and peaks at $400,000 a fortnight at fortnight 5. d. From fortnight 5 onwards fortnightly DRV sales grows at 10%.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Given the following: 30-Day billing cycle and 1.5% interest charge per month. 9/1 Balance $1,500. 9/8 Charge $300. 9/20 Payment $1,000. The average daily balance on 10/01 is; None of these $1,366.67...

Suppose that the distance of fly balls hit to the outfield (in baseball) is normally mean of 264 feet and a standard deviation of 45 feet. Let X be the distance in feet for a fly ball. a. What is the...

The Hampshire Company manufactures umbrellas that sell for $12.50 each. In 2014, the company made and sold 60,000 umbrellas. The company had fixed manufacturing costs of $216,000. It also had fixed...

6. Use the same set of information given in the problem above. (a) Use S&P 500 future prices to calculate the implied dividend yield on S&P 500. For simplicity, assume you can borrow or deposit money...

Assuming ThermaClear was successful using DRTV as Scocimara predicted, the product line would self-fund its growth. Scocimara explained DRTV is an extremely capital-efficient model. With a $100...

You believe that there is a market for washing out smelly trash cans for residential and commercial customers. The reason you believe this is that last year you spent $20,000 on consulting fees to...

Learning Outcomes define the valuation and reporting of current liabilities, estimated liabilities, and other contingencies. interpret company solvency through selection and application of...

I can send you the excel worksheet through email if you want. i dont know why the images quality keep going down, i think chegg reduce the quality because they look perfecly clear on my iphone 13....

Complete Case Study2 PART A ONLY PLEASE. I have provided the case study document with the questions on there. Case Study - Background Reading - Strategic Management - Banks The CEO of St. Sebastian...

Table 2. Depreciation Consideration Salvage value Life for tax purposes $0.00 5 years The management team of Tanford Hotel evaluates the feasibility of this technology project. They predict that room...

Reading - Strategic Management - Banks The CEO of St. Sebastian Health System, a moderate-sized hospital system in a mid-sized, Midwest city has hired you to help turn things around. The CFO is...

Problem refer to the function g shown in the figure. Use the graph to estimate the indicated function values and limits (E) is g continuous at x = 4? Explain g(x) Figure for 15-22 (A) lim g(x) (C)...

What did Kotler and Levy (69) propose, briefly? What was their concept of the meaning of marketing and applications of the marketing concept? Why did Luck object? Which argument won out?

Find a n equation for the conic that satisfies the given conditions. hyperbola, vertices ( - 3 , - 4 ) , ( - 3 , 6 ) , foci ( - 3 , - 7 ) , ( - 3 , 9 )

Cost and fair value data for the trading debt securities of Lecler Company at December 31, 2022, are $62,000 and $59,600, respectively. Prepare the adjusting entry to record the securities at fair...

The City of Monroe Scholarship Foundation private-purpose trust fund had the following account balances on January 1, 2017: Debits Credits Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . ....

The fiscal year-end for the Northwest Distribution Corporation is December 31. The companys 2021 financial statements were issued on March 15, 2022. The following events occurred between December 31,...

Compute the cost of not taking the following trade discounts: a. 2/10, net40 b. 2/15, net30 c. 2/10, net45 d. 3/10, net180

Recall the Texas case Del Lago v. Smith from Chapter 1. In that case, a bartender served drinks when it was obvious that drunken patrons were about to engage in a dangerous bar fight. Smith, who...

Can we put that she will be making weekly payroll deductions inthe amount of $52.75 to the housing equalling $211.00 monthly

Corporate bankruptcies* climbed new heights during the Great Recession of 20082009. Firms ranging from mighty ones such as Lehman Brothers and General Motors to tiny entrepreneurial outfits dropped...

If your country has competition or antitrust laws, find a landmark case, and explain whether you support the plaintiff or the defendant. If your country does not have competition or antitrust laws,...

Market opening throughout emerging economies often means the arrival of multinational enterprises (MNEs) from developed economies. Although MNEs put enormous pressure on local firms, MNEs also serve...

Which of the following terms refers to the amplitude of a light wave such as how high or low the wave is? a. brightness b. color c. pitch d. hue

Of the neuroimaging methods covered in Chapter Two, which methods might be best for examining the brain activity of someone who is watching a magic performance? Why?

The examples highlighted in this discussion are based on visual illusions; can you think of a magic trick or performance that may have been based on an illusion in a different sensory modality?