Kiwi Airlines has fixed operating costs of $5.8 million, and its variable costs amount to 20 percent of sales revenue. The firm has $2 million in bonds outstanding with a coupon interest rate of 8 percent. Revenues for the firm are $8 million and the firm is in the 40 percent corporate income tax bracket. What is the firm's breakeven dollar sales volume? Group of answer choices $5.8 million $4.83 million $7.25 million $9.67 million $29 million
Step by step showing math please thumbs up guaranteed <3
Given,
Fixed operating costs = $5.8 million
Variable costs rate = 20% or 0.20
Solution :-
Firm's break even sales volume
= Fixed operating costs/(1 - Variable cost rate)
= $5.8 million/(1 - 0.20)
= $5.8 million/0.80
= $7.25 million
Kiwi Airlines has fixed operating costs of $5.8 million, and its variable costs amount to 20...
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Read the Article posted below, then answer the following
questions:
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three reasons why most (50-60%) of acquisitions fail to create
shareholder value.
What are the five major components of “CEMEX
Way” and why has this approach been so successful in
post-acquisition integration?
In your opinion, what can other companies learn from
the “CEMEX Way” as a benchmark for acquisition
management?
Article:
CEMEX: Globalization "The...