what is the formula to compute the incremental annual revenues
Formula: Incremental annual Revenue=New Sales-Baseline sales
For Example :
2019 |
2018 |
|
Sales |
50000 |
25000 |
Incremental Revenue=Sales of 2019-Sales of 2018=($50000-$25000)=$25000
What are the incremental revenues, expenses, and net income for each year for Model A and Model B? Te=15%. Time period is across 10 years... please answer #4 and #5 Oxford Manufacturing company needs to invest in a new air compressor. They have narrowed the choice to two alternatives, A and B. the following financial data has been collected: Model A Model B Investment Cost $25,000 $35,000 Annual Incremental Revenues $18,700 $16,500 Annual O&M Costs $5,600 $3,500 Salvage Value $4,000...
Using the results from Question 1, compute the incremental annual revenues (cash inflows) if McCoy invests in the larger truck and trailer. Use the model in case Exhibit 1 to compute incremental annual expenses (cash outflows) if McCoy invests in the larger truck and trailer. Determine incremental annual cash flows for the larger truck and trailer Results Question 1 Case 1: Current Trucks/ Trailers number of calendar days needed to complete a one-acre job Since, the number of calendar days...
Explain incremental revenues and incremental costs. Provide a business example for each of these terms.
Explain incremental revenues and incremental costs. Provide a business example for each of these terms.
A capital investment project is expected to generate an incremental increase in revenues of $15 million and an incremental increase in operating costs of $10 million during its first year. Year 1 incremental depreciation expense is $5 million. The firm’s interest expense will increase by $2 million during year 1. If the firm’s marginal tax rate is 35% what is the year 1 incremental after-tax cash flow for capital budgeting purposes? Answer = $5 million (interest expense should be excluded—it...
A project creates incremental sales of $ 713,500, incremental costs of $ 447,300 and annual depreciation equal to $ 81,200. The corporate tax rate is 32 %. Calculate the projects operating cash flow (OCF).
1. Using the data available and applying the Compound Annual Percent Change formula, compute the annual growth rates of the following GDP components. Type in the formula you use & show your calculations. Report in your answer the values for "m" and "n." a. Calculate the compound annual percent change in Real GDP (billions of (2012) chained dollars) from 2016 to 2019, using ANNUAL DATA. 2016= 17,688.9 2019= 19,073.1 b. Calculate the compound annual percent change in Real Personal Consumption...
The Taylor Mountain Uranium Company currently has annual cash revenues of $1.2 million and annual cash expenses of $700,000. Depreciation amounts to $100,000 per year. These figures are expected to remain constant for the foreseeable future (at least 15 years). The firm’s marginal tax rate is 40 percent. A new high-speed processing unit costing $1.2 million is being considered as a potential investment designed to increase the firm’s output capacity. This new piece of equipment will have an estimated usable...
Suppose Garrett Corp.'s breakeven point is revenues of $1,400,000. Fixed costs are $630,000 Requirements 1. Compute the contribution margin percentage. 2. Compute the selling price if variable costs are $11 per unit. 3. Suppose 90,000 units are sold. Compute the margin of safety in units and dollars. 4. What does this tell you about the risk of Garrett making a loss? What are the most likely reasons for this risk to increase? Requirement 1. Compute the contribution margin percentage Determine...
Suppose Garrison Corp.'s breakeven point is revenues of $1,400,000. Fixed costs are $630,000. Requirements 1. Compute the contribution margin percentage. 2. Compute the selling price if variable costs are $11 per unit. 3. Suppose 90,000 units are sold. Compute the margin of safety in units and dollars. 4. What does this tell you about the risk of Garrison making a loss? What are the most likely reasons for this risk to increase? Requirement 1. Compute the contribution margin percentage Determine...