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
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
A firm is considering an investment in a new machine with a price of $17.3 million to replace its existing machine. The current machine has a book value of $7 million and a market value of $5.7 million. The new machine is expected to have a 4-year life, and the old machine has four years left in which it can be used. If the firm replaces the old machine with the new machine, it expects to save $7.1 million in operating costs each year over the next four years. Both machines will have no salvage value in four years. If the firm purchases the new machine, it will also need an investment of $410,000 in net working capital. The required return on the investment is 12 percent and the tax rate is 21 percent. The company uses straight-line depreciation. a. What is the NPV of the decision to purchase a new machine? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) b. What is the IRR of the…
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)
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…
16) can you please help with this question?
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
Ee 276.
1.) refer to the original data. Compute the company's margin of safety in both dollar and percentage terms ? 2.) what is the company's cm ratio? If he company can sell more units thereby increasing sales by $84000 per month and there is no change in fixed expense, by how much would you expect monthly net operating income to increase?
Last year Minden Company introduced a new product and sold 25, 300 units of it at aprice of $99 per unit. The product's variable expenses are $69 per unit and its fixedexpenses are $837,300 per year. Required: 1. What was this product's net operatingincome (loss) last year? 2. What is the product's break - even point in unit sales anddollar sales? 3. Assume the company has conducted a marketing study that estimates itcan increase annual sales of this product by 5.000 units for each $2 reduction in itsselling price. If the company will only consider price reductions in increments of $2 (e.g$68, $66, etc.), what is the maximum annual profit that it can earn on this product?What sales volume and selling price per unit generate the maximum profit? 4. Whatwould be the break - even point in unit sales and in dollar sales using the selling pricethat you determined in requirement 3?

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