Arel, which produces X Goods, plans a total investment of 5,000,000 pounds using 3,000,000 TI of equity and 2,000,000 pounds of foreign capital with 40% interest. According to the calculations, the total fixed expenses of the project is 2,800,000 pounds, while the head of the unit changes, the expenses are 500 pounds, and the estimated sales price of the product produced is 900 pounds. The capacity of the project is 25,000 units. In the face of this situation; a) what is the breakeven point that closes interest payments ? b) what is the upside point if 25% profit on equity demands labor ? c) What is the breakeven point if it wants to make a profit in the amount corresponding to 15% of the close?
Arel, which produces X Goods, plans a total investment of 5,000,000 pounds using 3,000,000 TI of equity and 2,000,000 pounds of foreign capital with 40% interest. According to the calculations, the total fixed expenses of the project is 2,800,000 pounds, while the head of the unit changes, the expenses are 500 pounds, and the estimated sales price of the product produced is 900 pounds. The capacity of the project is 25,000 units. In the face of this situation; a) what is the breakeven point that closes interest payments ? b) what is the upside point if 25% profit on equity demands labor ? c) What is the breakeven point if it wants to make a profit in the amount corresponding to 15% of the close?
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
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Transcribed Image Text:Arel, which produces X Goods, plans a total investment of 5,000,000 pounds using 3,000,000
TI of equity and 2,000,000 pounds of foreign capital with 40% interest. According to the
calculations, the total fixed expenses of the project is 2,800,000 pounds, while the head of the
unit changes, the expenses are 500 pounds, and the estimated sales price of the product
produced is 900 pounds. The capacity of the project is 25,000 units. In the face of this
situation;
a) what is the breakeven point that closes interest payments ?
b) what is the upside point if 25% profit on equity demands labor ?
c) What is the breakeven point if it wants to make a profit in the amount corresponding to
15% of the close?
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