Q3/A cement manufacturing company has a sales value for the first half of the year in the company's records ($492,000) for the year 2020, and the company records for that year provided the following information: Depreciation ($80,000) variable costs per unit (1,128) and fixed costs (25,000), Invested capital ($ 860000), production capacity (4500) units. Find each of: the annual project profit 2 - the profit percentage of the project 3 - the safety threshold ratio 4 - the size and value of the break-even point 5- determine whether the project is economically feasible
Q3/A cement manufacturing company has a sales value for the first half of the year in the company's records ($492,000) for the year 2020, and the company records for that year provided the following information: Depreciation ($80,000) variable costs per unit (1,128) and fixed costs (25,000), Invested capital ($ 860000), production capacity (4500) units. Find each of: the annual project profit 2 - the profit percentage of the project 3 - the safety threshold ratio 4 - the size and value of the break-even point 5- determine whether the project is economically feasible
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Q3 / A cement manufacturing
company
has a sales value for the first half of the
year in the company's records
($492,000) for the year 2020, and the
company records for that year provided
the following information: Depreciation
($80,000) variable costs per unit
(1,128) and fixed costs (25,000),
Invested capital ($ 860000),
production capacity (4500) units. Find
each of: the annual project profit 2 - the
profit percentage of the project 3 - the
safety threshold ratio 4 - the size and
value of the break-even point 5 -
determine whether the project is
economically feasible
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