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accounting break-even production quantity for a project is 12,320 units. The fixed costs are $216,000 and...
2. Stellar Plastics is analyzing a proposed project. The company expects to sell 12,000 units, plus...
2. Stellar Plastics is analyzing a proposed project. The company expects to sell 12,000 units, plus or minus 5 percent. The expected variable cost per unit is $3.20 and the expected fixed costs are $30,000. The fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $24,000. The tax rate is 34 percent. The sales price is estimated at $7.50 a unit, plus or minus 4 percent. What is the...
12) A project has an accounting break-even quantity of 28,700 units, a cash break-even quantity of...
12) A project has an accounting break-even quantity of 28,700 units, a cash break-even quantity of 17,120 units, a life of 10 years, fixed costs of $178,000, variable costs of $18.40 per unit, and a required return of 14 percent. Depreciation is straight-line to zero over the project life. Ignoring taxes, what is the financial break-even quantity? A) 39,723 units B) 39,624 units C) 39,201 units D) 39,320 units E) 39,458 units please show step by step using all break-evens
1. Miller Mfg. is analyzing a proposed project. The company expects to sell 8,000 units, plus...
1. Miller Mfg. is analyzing a proposed project. The company expects to sell 8,000 units, plus or minus 4 percent. The expected variable cost per unit is $11 and the expected fixed costs are $290,000. The fixed and variable cost estimates are c accurate within a plus or minus 5 percent range. The depreciation estimated at $64 a unit, give or take 3 percent. What is the operating cash flow under the best case scenario? expense is $68,000. The tax...
Consider a project with the following data: accounting break-even quantity = 5,500 units; cash break-even quantity 5,000 units; life -eight years; fixed costs $140,000; variable costs $22 per unit; r...
Consider a project with the following data: accounting break-even quantity = 5,500 units; cash break-even quantity 5,000 units; life -eight years; fixed costs $140,000; variable costs $22 per unit; required return 12 percent. Ignoring the effect of taxes, find the financial break-even quantity. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Break-even quantity
Consider a project with the following data: accounting break-even quantity = 5,500 units; cash break-even quantity 5,000 units; life -eight...
Consider a project with the following data: accounting break-even quantity = 14,200 units; cash break-even quantity...
Consider a project with the following data: accounting break-even quantity = 14,200 units; cash break-even quantity = 10,300 units; life = five years; fixed costs = $170,000; variable costs = $27 per unit; required return = 12%. Ignoring the effect of taxes, find the financial break-even quantity. (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Break-even quantity
8. Consider the following production-oriented project. The units produced will sell for $28/unit and can be...
8. Consider the following production-oriented project. The units produced will sell for $28/unit and can be produced at a variable cost of $20/unit. Fixed costs are $80K. The purchase price for the project is $200K, de preciable down to zero over a four-year life. The project has no salvage value. Ignore taxes, but use a 10% re- quired return when evaluating this project. (a) Calculate the accounting break-even quantity. (b) Calculate the cash-flow break-even quantity. (c) Calculate the financial break-even...
Cedar Company has the following information related to a new project: Initial investment: $1,498,000; Fixed costs:...
Cedar Company has the following information related to a new project: Initial investment: $1,498,000; Fixed costs: $416,000; Variable costs: $12.30 per unit; Selling price: $31.20 per unit; Discount rate: 13 percent; Project life: 5 years; Tax rate: 25 percent. Fixed assets are depreciated using straight-line depreciation over the project's life. What is the financial break-even point? 46,773 units 44,275 units 48,924 units 50,008 units 42,683 units
ment has an initial cash outflow of $210,000 for fixed assets that will be depreciated straight...
ment has an initial cash outflow of $210,000 for fixed assets that will be depreciated straight line to zero Over the life of the project. The sales price is set at $19.95 a unit, the annual fixed costs are $237,000, and the variable per unit is $0.87. The tax rate is 22 percent and the discount rate is 11 percent. At what sales quantity per year will the investment break even on a financial basis? (10 points)
You have compiled the following information for a proposed expansion project. Initial investment: $349,000 Fixed costs:...
You have compiled the following information for a proposed expansion project. Initial investment: $349,000 Fixed costs: $57,700 Variable costs: $112.64 per unit Selling price: $224.90 per unit Discount rate: 11% Project life: 3 years Tax rate: 21% Depreciation is straight-line to zero over the project's life. What is the financial break-even point? 1,986 1,849 2,319 4,173 1,550
This problem concerns the effect of taxes on the various break-even measures. Consider a project to...
This problem concerns the effect of taxes on the various break-even measures. Consider a project to supply Detroit with 30,000 tons of machine screws annually for automobile production. You will need an initial $4,400,000 investment in threading equipment to get the project started; the project will last for three years. The accounting department estimates that annual fixed costs will be $650,000 and that variable costs should be $250 per ton; accounting will depreciate the initial fixed asset investment straight-line to...
2. Stellar Plastics is analyzing a proposed project. The company expects to sell 12,000 units, plus or minus 5 percent. The expected variable cost per unit is $3.20 and the expected fixed costs are $30,000. The fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $24,000. The tax rate is 34 percent. The sales price is estimated at $7.50 a unit, plus or minus 4 percent. What is the...
1. Miller Mfg. is analyzing a proposed project. The company expects to sell 8,000 units, plus or minus 4 percent. The expected variable cost per unit is $11 and the expected fixed costs are $290,000. The fixed and variable cost estimates are c accurate within a plus or minus 5 percent range. The depreciation estimated at $64 a unit, give or take 3 percent. What is the operating cash flow under the best case scenario? expense is $68,000. The tax...
Consider a project with the following data: accounting break-even quantity = 5,500 units; cash break-even quantity 5,000 units; life -eight years; fixed costs $140,000; variable costs $22 per unit; required return 12 percent. Ignoring the effect of taxes, find the financial break-even quantity. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Break-even quantity
Consider a project with the following data: accounting break-even quantity = 5,500 units; cash break-even quantity 5,000 units; life -eight...
8. Consider the following production-oriented project. The units produced will sell for $28/unit and can be produced at a variable cost of $20/unit. Fixed costs are $80K. The purchase price for the project is $200K, de preciable down to zero over a four-year life. The project has no salvage value. Ignore taxes, but use a 10% re- quired return when evaluating this project. (a) Calculate the accounting break-even quantity. (b) Calculate the cash-flow break-even quantity. (c) Calculate the financial break-even...
ment has an initial cash outflow of $210,000 for fixed assets that will be depreciated straight line to zero Over the life of the project. The sales price is set at $19.95 a unit, the annual fixed costs are $237,000, and the variable per unit is $0.87. The tax rate is 22 percent and the discount rate is 11 percent. At what sales quantity per year will the investment break even on a financial basis? (10 points)
You have compiled the following information for a proposed expansion project. Initial investment: $349,000 Fixed costs: $57,700 Variable costs: $112.64 per unit Selling price: $224.90 per unit Discount rate: 11% Project life: 3 years Tax rate: 21% Depreciation is straight-line to zero over the project's life. What is the financial break-even point? 1,986 1,849 2,319 4,173 1,550
This problem concerns the effect of taxes on the various break-even measures. Consider a project to supply Detroit with 30,000 tons of machine screws annually for automobile production. You will need an initial $4,400,000 investment in threading equipment to get the project started; the project will last for three years. The accounting department estimates that annual fixed costs will be $650,000 and that variable costs should be $250 per ton; accounting will depreciate the initial fixed asset investment straight-line to...
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