a) What is the accounting breakeven level of sales in terms of number of chips sold? b) b. What is the NPV breakeven level of sales assuming a tax rate of 35%, 10-year project life and a discount rate of 12%.

Q: 4. Skate Along, Inc has fixed costs of $740,000. They sell each pair of roller skates for $80 a…

A: Break even point means a point where there is no profit or loss incurred. in other words Break even…

Q: Finn Enterprises manufactures ceiling tans that normally sell for $82 each. There are 320 defective…

A: In order to determine whether to sold defective units as-is or after further processing, we should…

Q: 2. A company can manufacture a product using hand tools. Tools will cost $ 1,000, and the…

A: Here,

Q: A company invests $16,000 to produce a product that will sell for $45.60. Each unit costs $8.35 to…

A: Investment cost = $ 16,000 Selling price = $ 45.60 Cost per unit = $ 8.35 Profit per unit = Selling…

Q: A company is planning to manufacture rocking chairs. The fixed cost will be for $40,000. The cost…

A: Formulae: Cost Function:C(x)= FC + V(x)where,C=Total CostFC=Total Fixed CostV=Variable cost per…

Q: The Lombard Company produces and sells office-space dehumidifiers to companies that own or rent…

A: “Since you have posted multiple questions with multiple sub parts, we will provide the solution only…

Q: Spotless Cleaning Ltd wishes to evaluate an investment on a particular washing machine. In your role…

A: Net present value is the difference between present value of cash inflows and present value of cash…

Q: Newton cellular manufactures and sells the top line cell phone for the year 2022. Newton has…

A: Solution 1: Contribution margin ratio = 100% - Variable cost ratio = 100% - 70% = 30%

Q: XYZ manufactures a computer stand. It has fixed costs of $600,000 and each stand sells for $90, with…

A: Formula: Profit = Revenues - Expenses.

Q: A product is currently reported on the balance sheet at a cost of $29. The selling price of the…

A: Net realizable  value = sales price - cost to sell

Q: Your small toy manufacturing facility has the following information: Fixed costs $10,500 Material…

A: Fixed costs = $10,500 Variable cost per unit = $0.375 + $0.019 + $0.095 = $0.489 Profit required =…

Q: 10) An entrepreneur conducted research for a new product indicates that it can be sold for $75 per…

A: The break even sales are calculated as fixed costs divided by contribution Margin Ratio. The…

Q: Bill Prichett’s store makes and sells small pottery items which are sold at $10 per item. Fixed cost…

A: Contribution per unit= sales price - variable cost

Q: axine's Pumps (MP) sells bilge pumps for $250 each. Each pump cost $100 to produce and MP's fixed…

A: Break-even point is the level of sales at which, sale revenue is equal to the fixed and variable…

Q: new machine that will check f tal revenues, including cost sav There is no salvage value. Wha

A: Accounting rate of return is the simple method capital budgeting in which annual profit is divided…

Q: Cheapo Computers shipped two servers to its biggest client. Four refurbished computers were…

A: There are three possibilities of profits here. We have to find the expected profit and the standard…

Q: The rental cost of renting a machine that is $20,000 per year plus $0.70 per machine hour of use…

A: Cost is the amount of money incurred on the making or selling of the goods or services. The cost, in…

Q: More Parts Liquidators specializes in buying excess parts inventories for resale or to incorporate…

A: Sell or process further decision rule: According to the rule of "Sell or process further decision"…

Q: "In my opinion, we ought to stop making our own drums and accept that outside supplier's offer,"…

A: A make-or-buy decision seems to be a behaviour of employing cost-benefit analysis to make a…

Q: More Parts Liquidators specializes in buying excess parts inventories to resell or to incorporate…

A: Profit/ Loss is the amount of money earned or incurred by the entity after deducting the costs from…

Q: Calculate break-even point and sales required to earn target operating income in dollars. E6.20 (LO…

A: Given, Selling price per copy= $ 250 Variable cost per copy= $ 50 Fixed cost= $ 450,000 copies to be…

Q: A coat manufacturer wants to build a large factory or a small factory. The profit per coat is…

A: Payoff refers to an amount that is paid in actuality for satisfying the terms of the mortgage loan…

Q: Wendell's Donut Shoppe is investigating the purchase of a new $18,600 donut-making machine. The new…

A: The IRR is the investment discount rate that corresponds to the difference between the original…

Q: Luxury Motors has 7,400 defective autos on hand, which cost $13,616,000 to manufacture, Luxury can…

A: Net advantage is the amount of difference between two different options of the entity. It helps to…

Q: XYZ manufactures a computer stand. It has fixed costs of S600,000 and each stand sells for $90, with…

A: Formula: Unit contribution margin = Sales price per unit - variable cost per unit

Q: Question 2: An item may be bought for a price of $12 a piece. Making it would require buying a…

A: Financial break even point when net present value is zero and there is no loss and profit situation…

Q: Max's Brakes is introducing a new revolutionary brake-pad for vehicles that will never wear out.…

A: Cash fixed expense per year is $1500 Depreciation expense is $600 The selling price is $100 The…

Q: It costs a coat manufacturer $8750 to make 125 coats and it costs $6500 to make 80 coats.  Each coat…

A: Sales are the revenues generated by the business from its day to day operations. The sales revenue…