Block island tv currently sells large televisions for $360. it has costs of $280. a competitor is bringing a new large television to market that will sell for $300. management believes it must lower the price to $300 to compete in the market for large televisions. marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. block island tv sales are currently 100,000 televisions per year. what is the target cost if the company wants to maintain its same income level, and marketing is correct (rounded to the nearest cent)? a. $225.00 b. $227.27 c. $246.68 d. $280.00

What is the most important type of decision that the financial manager makes?

The leading producer of cell phone backup batteries, jumpstart, has achieved great success because they produce high-quality battery backups that are not too expensive. even so, another company that produces lower-quality batteries at the same price has also achieved some success, but not as much as jumpstart. also, in general, the price of backup batteries has declined because of economies of scale and learning. in addition, jumpstart has added complementary assets, such as a carrying case. considering all of these factors, the backup battery industry is most likely in the introduction stage. growth stage. shakeout stage. maturity stage.

Kelso electric is debating between a leveraged and an unleveraged capital structure. the all equity capital structure would consist of 40,000 shares of stock. the debt and equity option would consist of 25,000 shares of stock plus $280,000 of debt with an interest rate of 7 percent. what is the break-even level of earnings before interest and taxes between these two options?