13-9. (Using break-even analysis) (Related to Checkpoint 13.4 on page 457)AccountingBreak-EvenVariable CostProject Point (in units) Price per Unitper UnitFixed Costs DepreciationA6,250$55$100,000$ 25,000B750$1,000$500,000$100,000$ 20$ 202,000$15$ 5,000D2,000$ 5$ 15,000a. Calculate the missing information for each of the above projects.b. Note that Projects C and D share the same accounting break-even. If sales areabove the break-even point, which project do you prefer? Explain why.c. Calculate the cash break-even for each of the above projects. What do the dif-ferences in accounting break-even and cash break-even tell you about the fourprojects?

Break even analysis is the analysis of how the fixed and variable cost affect the firms profit.…

Answered: 13-9. (Using break-even analysis)…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Shelton Company purchased a parcel of land six years ago for $869,500. At that time, the firm invested $141,000 in grading the site so that it would be usable. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $52,000 a year. The company is now considering building a warehouse on the site as the rental lease is expiring. The current value of the land is $921,000. What value should be included in the initial cost of the warehouse project for the use of this land? Multiple Choice A. $1,010,500 B. $869,500 C. $1,062,000 D. $921,000 E. SO
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CH7-Q50: Hi I have asked this question before, but i haven't received explanation on requirement # 3. Also, last question was not answered. Please answer #6 (last question) and fully explain # 3. thanks! Jellico Inc.'s projected operating income (based on sales of 450,000 units) for the coming year is as follows: Total Sales $ 12,150,000 Total variable cost 7,533,000 Contribution margin $ 4,617,000 Total fixed cost 2,875,878 Operating income $ 1,741,122 Required: 1(a). Compute variable cost per unit. Enter your answer to the nearest cent.$per unit 1(b). Compute contribution margin per unit. Enter your answer to the nearest cent.$per unit 1(c). Compute contribution margin ratio. % 1(d). Compute break-even point in units. units 1(e). Compute break-even point in sales dollars.$ 2. How many units must be sold to earn operating income of $376,542? units 3. Compute the additional operating income that Jellico would earn if sales were $50,000 more than expected.$ 4. For…

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