24:20:37You received partial credit in the previous attempt.A company is wondering if a new 7-year project (with the relevant information below) isworth it.Each unit can be sold forEach unit can be produced forAdditional total fixed costs (i.e., regardless of # of unitsproduced) per yearProduction equipment can be bought forDepreciation of the production equipment, per yearCompany's income tax rateIn addition, the discount rate appropriate for the project's level of risk is 16 percent peryear. The production equipment follows straight-line depreciation method over theproject's 7-year life, and will be worthless at the end of the project.a.b.=$43.40= $10.65a. In order to break even in the "accounting" sense, the company would need to sellunits each year. (Do not round your intermediate calculations and only round yourfinal answer to 2 decimal places, e.g., 32.16.)$450,000= $938,000= $134,000= 24%b. In order to break even in the "financial" sense, the company would need to sellunits each year. (Do not round your intermediate calculations and only round yourfinal answer to 2 decimal places, e.g., 32.16.)Accounting break-even levelFinancial break-even level17,832.06 units20,053.03 unitsView previous attempt

The break-even point is the turning point in the business and is the point where there is no loss…

In order to break even in the "accounting" sense, the company would need to sell units each year. (Do not round your intermediate calculations and only round you final answer to 2 decimal places, e.g., 32.16.) In order to break even in the "financial" sense, the company would need to sell units each year. (Do not round your intermediate calculations and only round you final answer to 2 decimal places, e.g., 32.16.)

In order to break even in the "accounting" sense, the company would need to sell units each year. (Do not round your intermediate calculations and only round you final answer to 2 decimal places, e.g., 32.16.) In order to break even in the "financial" sense, the company would need to sell units each year. (Do not round your intermediate calculations and only round you final answer to 2 decimal places, e.g., 32.16.)

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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Your company received a $9 million order on the last day of the year. You filled the order with $3 million worth of inventory. The customer picks up the order the same day and pays $3 million up front in cash; you also issue a bill for the customer to pay the remaining balance of $6 million within 40 days. Suppose your firm’s tax rate is 0% (ignore taxes). Based on the above information; a. No option is correct b. Your earnings did not change c. Your earnings went up by $9 million d. Your earnings went up by $6 million
Takaful wishes to adjust their rates for next year, they calculate that the expected loss ratio is 0.8, while the data shows that the loss adjustment expenses is 566 and the total premium earning is 990. The company's current ratei s 77. Using the experience rating method what will the new primum be if the credibility factor is 0.6
Phan Company has not reported a profit in five years. This year the company would like to narrow its loss to $18,000. Assuming its selling price is $42.50 per unit and its variable costs per unit are $30, how many units must be sold to achieve its target given that total fixed costs are $69,000? (Do not round intermediate calculations.) ook Multiple Choice rences 4,448 5,520 3,712 4,080
The Warren Watch Company sells watches for $29, fixed costs are $180,000, and variable costs are $10 per watch. What is the firm's gain or loss at sales of 7,000 watches? Loss, if any, should be indicated by a minus sign. Round your answer to the nearest cent.$ What is the firm's gain or loss at sales of 15,000 watches? Loss, if any, should be indicated by a minus sign. Round your answer to the nearest cent.$ What is the break-even point (unit sales)? Round your answer to the nearest whole number.units
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Cullumber Company is considering two alternatives. Alternative A will have sales of $158,500 and costs of $100,100. Alternative B will have sales of $180,900 and costs of $133,200. Compare alternative A with alternative B showing incremental revenues, costs, and net income. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Revenues Costs Net income $ $ Alternative A $ $ Alternative B $ $ Net Income Increase (Decrease)
Please help me to solve this question
Suppose your firm receives a $4.34 million order on the last day of the year. You fill the order with $1.82 million worth of inventory. The customer picks up the entire order the same day and pays $1.17 million up front in cash; you also issue a bill for the customer to pay the remaining balance of $3.17 million within 40 days. Suppose your firm's tax rate is 0% (i.e., ignore taxes). Determine the consequences of this transaction for each of the following: d. Inventory e. Cash a. Revenues b. Earnings c. Receivables a. Revenues Revenues will increase by $ million. (Select from the drop-down menu and round to two decimal places.) b. Earnings Earnings will increase by $ million. (Select from the drop-down menu and round to two decimal places.) c. Receivables Receivables will increase by $ million. (Select from the drop-down menu and round to two decimal places.) d. Inventory Inventory will decrease by $ million. (Select from the drop-down menu and round to two decimal places.) е. Cash…
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the answer is incorrec
In each of the following cases, find the unknown variable. Ignore taxes. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Accounting Break-Even Unit Price Unit Variable Cost Fixed Costs Depreciation 106,000 $ 50 $ 40 $ 850,000 125,000 50 5,000,000 1,000,000 16,000 60 380,000 100,000
1. Assume that $1,000 is to be received 30 years from today. Compare the present values obtained using 0.05 and 0.20 as rates of discount. 2. The ABC Company has opened 10 new stores. It has incurred a great deal of expenses associated with opening the stores, and the stores have not yet built up enough clientele to be profitable. On the other hand, the stores are operating at profit levels exceeding expectations, and there are indications that they will be very profitable in the future. It is obvious that the stock market has not yet digested this latter fact, and the additional 50 stores this year, but to do so will require new stockholder capital acquired from the market (it has borrowed all it feels it is prudent to borrow and cannot obtain more capital from its current stockholders). Without the new capital, the stockholders can expect to earn an equivalent annual return of 0.15 on the current market value of their investment (assume there is $100 million or 1 million shares of…

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