Tax @ 35% = 65000*35%/(100%-35%) = 35000
EBIT = Unleverd net income+Tax = 65000+35000 = 100000
Gross profit required = EBIT+fixed cost + depreciation
= 100000+20000+40000
=160000
Economic breakeven = Gross profit required/ (SP-Variablecost)
= 160000/(30-20)
= 16000 units
estion 9 O out of 2 points Note that the incremental red cost is $20.000 Suppose...
Selected Answer: Question 32 O out of 20 points Canyon Buff Corp is considering launch a pro t o expand the production of a new construction chemical The production in which will be placed in a warehouse that the company could have xotherwise rented out for $20.000 per year. They will borrow $200.000 from Amarillo National Bank at an interest rate of % per annum for this project. The projected financials for the lovered project in Year 1 are as...
After looking at the projections of the HomeNet project, you
decide that they are not realistic. It is unlikely that sales will
be constant over the four-year life of the project. Furthermore,
other companies are likely to offer competing products, so the
assumption that the sales price will remain constant is also likely
to be optimistic. Finally, as production ramps up, you anticipate
lower per unit production costs resulting from economies of scale.
Therefore, you decide to redo the projections...
Question 32 Save Answ 20 points Canyon Buff Corp. is considering launch a project Pi to expand the production of a new construction chemical. The production line which will be placed in a warehouse that the company could have otherwise rented out for S20,000 per year. They will borrow $200,000 from Amarillo National Bank at an interest rate of 5% per annum for this project. The projected financials for the levered project in Year 1 are as follows: sales will...
PROBLEM 7-2 Use incremental analysis related to make or buy, consider opportunity cost, and identify nonfinancial factors. The management of Shicago Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier. The part, called CISCO, is a component of the company's finished product. The following information was collected from the accounting records and production data for the year ending December 31, 2017. • • 8,000 units of CISCO were produced...
After looking at the projections of the HomeNet project, you decide that they are not realistic. It is unlikely that sales will be constant over the four-year life of the project. Furthermore, other companies are likely to offer competing products, so the assumption that the sales price will remain constant is also likely to be optimistic. Finally, as production ramps up, you anticipate lower per unit production costs resulting from economies of scale. Therefore, you decide to redo the projections...
(generate an incremental contribution margin of $38,500)? 2-44 Multiproduct breakeven analysis, target profit, taxes Johnson Company manufactures a sin- gle product called the Gripper. Patients, under the direction of physiotherapists, use the Gripper to restore, to the extent possible, normal hand functions. The Gripper has the following per-unit revenue and costs: Revenue $20 Direct materials cost. Direct labor cost Variable overhead Contribution margin per unit $6 Johnson Company has fixed manufacturing costs of $1 million per year and fixed general,...
question 9 and 10
Question 9 (10 points) Kramerica Industires plans to introduce a new product to the market. Last week, Kramerica hired a marketing firm to develop a TV ad for the product. The marketing firm will develop the ad regardless of Kramerica's decision to continue the project or not. The project will require additional working capital of $300,000 which will be recovered at the conclusion of the project. The firm has spent $250,000 on R&D for this project....
please fill out bottom 3 pictures
UR KNOWLEDGE 1. Business Decision Case The following total cost data are for Ralston Manufacturing Company, which has a normal capacity per period of 400,000 units of product that sell for $18 each. For the foreseeable future, regular sales volume should continue at normal capacity of production. 4:43 PN 9/13/20 Direct materials. Direct labor. Variable overhead Fixed overhead (Note 1). Selling expense (Note 2) Administrative expense (fixed) $1,720,000 1,120,000 560,000 880,000 720,000 200,000 $5,200,000...
Can someone help with #5 & 6 please?
Now assume that 20.000 dinal sh o cked to an angel investor a months after the initial incorporation Sh 5 per share o w your awwer in Part A would change of the com mon Mock did not have a vall a nwerin Part par value of 0.01 per share would change given At the end of the first year of S h ow dollar amounts in the common the w all...
Problem 1-24 Different Cost Classifications for Different Purposes (L01-1, LO1-2, LO1-3, LO1-4, LO1-5] Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses fo the month: $ 85,000 $ 43,000 $ 21,400 32,800 $ 54,200 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Variable selling expense Fixed selling expense Total selling expense Variable administrative expense Fixed administrative expense Total administrative expense $ 15,200 24,400 $...