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13.The Solar Calculator Company proposes to invest $5 million in a nevw calculator-making plant. Fixed costs...
CCC proposes to invest $12 million in a new calculator plant that will depreciate on a straight-line basis. Fixed costs are $3 milli per year. a calculator cost $10 per unit to manufacture and sells for $30 per unit. If plant lasts for four years and the cost of capital is 20%, what is the accounting break-even lvl of annual sales? (no taxes) 300,000 units 150,000 units 381,777 units 750,000 units 366,667 units I know the formula is (FC+D)/P-V but...
Please tell me the detailed 11. Digi Calculator proposes to invest $9 million in a new factory. Fixed costs are $2 million a year. A calculator costs $8 per unit to manufacture and can be sold for $24 per unit. The factory lasts for 4 years and the cost of capital is 20%. Assume no taxes, all cash flows arrive at the year-ends and the residual value of assets is zero after 4 years. What is the NPV break-even level...
Sensitivity Analysis. Emperor’s Clothes Fashions can invest $5 million in a new plant for producing invisible makeup. The plant has an expected life of 5 years, and expected sales are 6 million jars of makeup a year. Fixed costs are $2 million a year, and variable costs are $1 per jar. The product will be priced at $2 per jar. The plant will be depreciated straight-line over 5 years to a salvage value of zero. The opportunity cost of capital...
1. (30%) ABC company can invest $10 million in a new plant for producing bread jam. The plant has an expected life of 5 years, and expected sales are 6 million jars of jam a year. Fixed costs are $2 million a year, and variable costs are $1 per jar. The product will be priced at $2 per jar. The plant will be depreciated straight-line over 5 years to a salvage value of zero. The opportunity cost of capital is...
Emperor's Clothes Fashions can invest $5 million in a new plant for producing invisible makeup. The plant has an expected life of 5 years, and expected sales are 6 million jars of makeup a year. Fixed costs are $2.1 million a year, and variable costs are $1.10 per jar. The product will be priced at $2.40 per jar. The plant will be depreciated straight-line over 5 years to a salvage value of zero. The opportunity cost of capital is 12%,...
Emperor’s Clothes Fashions can invest $6 million in a new plant for producing invisible makeup. The plant has an expected life of 5 years, and expected sales are 7 million jars of makeup a year. Fixed costs are $2.5 million a year, and variable costs are $2.40 per jar. The product will be priced at $3.50 per jar. The plant will be depreciated straight-line over 5 years to a salvage value of zero. The opportunity cost of capital is 12%,...
neducation.com/flow/connecthtml k6 i Saved Emperor's Clothes Fashions can invest $5 million in a new plant for producing invisible makeup. The plant has an expected life of 5 years, and expected sales are 6 million jars of makeup a year. Fixed costs are $3.8 million a year, and variable costs are $2.50 per jar. The product will be priced at $3.90 per jar. The plant will be depreciated straight-line over 5 years to a salvage value of zero. The opportunity cost...
A large chemical plant is being planned with the capacity to produce 3 million pounds (lb.) of product annually. Raw-materials costs for the product are $0.45/lb., labor costs are $0.40/lb., and utility costs are $0.25/lb. Overhead costs are 75% of the labor costs. (a) If the company desires a profit equal to 20% of the total product cost, estimate the selling price per pound of product. (b) A similar plant with a capacity of 1.8 million lb. of product was...
13 You are considering investing in a mass assembly production line. The fixed costs for the production line equipment with instulation is $3 million. Each unit of product sells for $20 and has a $5 per unit variable cost. Labor, materials, and energy costs are factored into the variable costs. Expected demand is 300,000 3 units. What is the break-even units? 4 Fixed Costs (S): 5 Unit Cost (S): 6 Variable Cost (S) Break-Even Units per unit per unit You...
3. The fixed and variable costs for 3 potential plant sites for a ski equipment manufacturer are shown below Site Fixed Cost Per year Variable Cost Per Unit Atlanta Burlington Cleveland $250 $500 $1000 $6 $5 $4 (a) Graph the total cost lines for the three potential sites. (use x-0 and x-300 to draw the graph) (2 points) (b) Over what range of annual volume is each location the preferable one? (3 points) (o) If expected volume is 400 units,...