« previous next »

Author Question: Wheely Bike Manufacturers expects to produce and sell 9,000 made-to-order bicycles this year. ... (Read 168 times)

Zoey63294

  • Hero Member
  • *****
  • Posts: 539
on: Jul 10, 2018
Wheely Bike Manufacturers expects to produce and sell 9,000 made-to-order bicycles this year. Variable costs
  are 40 percent of sales while fixed costs total 600,000. At what price must each bicycle be sold for Wheely to
  earn EBIT of 450,000?
 
  What will be an ideal response?

Question 2

Bond prices are inversely related to market interest rates.
 
  Indicate whether the statement is true or false
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
Buy Test-Bank


k.lashomb

  • Sr. Member
  • ****
  • Posts: 346
Reply #1 on: Jul 10, 2018
Answer to Question 1

9,000P - (.40)(9,000)P - 600,000 = 450,000
9,000P - 3,600P - 600,000 = 450,000
5,400P = 1,050,000
P = 194.44

Answer to Question 2

TRUE


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Changes in boreal forest composition along a chronosequence in Quebec. Dates refer to the year of th Changes in boreal forest composition along a chronosequence in Quebec. Dates refer to the year of th
Cataract extraction. The procedure involves a surgical removal of a cataract lens and its replacemen Cataract extraction. The procedure involves a surgical removal of a cataract lens and its replacemen
Use a graphical method to find the length of the loan to the nearest year Use a graphical method to find the length of the loan to the nearest year
Chart showing average yearly dose of radiation from natural and human-made sources Chart showing average yearly dose of radiation from natural and human-made sources
Last year, Terrific Copying had total revenue of $475 000, while operating at 60% of capacity. ... Last year, Terrific Copying had total revenue of $475 000, while operating at 60% of capacity. ...
June’s bike shop Grade 1 Reading June’s bike shop Grade 1 Reading
Video: Major Elements in Biological Molecules: Nucleic acids

For a complete list of videos, visit our video library