Answered: The sales and profit for two years are…

The sales and profit for two years are as below: Sales Profit 2020 60000 17000 2021 90000 32000 Calculate Break Even Point (BEP).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: How much annual income would need to be generated over a 5 year period, to be equivalent to $4,000…

A: Calculate the annual income over a period of 5 years as follows:MS-Excel --> Formulas -->…

Q: Assume you will get 20 rental payments paid over 20 years at the beginning of each year. Initially,…

A: Discount rate is the rate of interest that is the required rate of return on the investment that an…

Q: then the present value factor of the lumpsum is:

A: Time value of money (TVM) is used to measure the value of money at different point of time in the…

Q: The present worth of a decreasing geometric series is 96157$. The interest rate is 8% per year and…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: present value of $153,000 to be received in 14 years from today. Assume a per annum discount rate…

A: The present value of the amount can be computed as follows:- Present value= Amount/ (1+r)^n Amount =…

Q: A firm is scheduled to receive payment of $32,000 in 1 year. What is the present value of this…

A: To calculate the present value of payment that will receive after 1 year we will use the below…

Q: A firm is scheduled to receive payment of $32,000 in 2 years. What is the present value of this…

A: To calculate the present value we will use the below formula Present value = FV/[1+(r/m)]n*m Where…

Q: How much is the sum of the present value of the expected return over those periods

A: Cash Flows (Year 1-10) (CF) = $15,000 per year Annual interest rate (r) = 5% Time Period (t) = 10…

Q: The profit from the sale of a product is expected to increase at an annual rate of 8%. First-year…

A: We need to use future value formula to calculate equivalent future value after 8 years.FVn = Future…

Q: If a 6-month T-Bill with a face value of $100 is purchased at a 8% annual discount, the buyer will…

A: Given information in question 6 month T bill Value at maturity = $100 Discount rate annual = 8%…

Q: his question concerns an APY of 12%. a) what APR, compounded quarterly, yields this APY? b) what APR…

A: APY is the effective yield after considering the impact of compounding and APR is without…

Q: Find the present value of 30 annual payments of $3,500 per annum where the first payment is made 11…

A: Number of Payment = n = 30Payment = p = $3500Time = t = 10Discount Rate = r = 19%

Q: find (a) the future value after 9 years, (b) the effective rate, and (c) the time to reach $10,000.…

A: Future value is the value of the current money or assets in future at a specific date. The value of…

Q: Use the following information to calculate the six-month forward rate 1.0 year ahead. Maturity…

A: > From the given information > Calculation of 6 months forward rate 1 year ahead :

Q: What is the formula for forecast of sales revenue for 20 years at an increase of revenue of 20% each…

A: Sales forecasting refers to estimating the future sales of the company based on the past trends.…

Q: A payment stream consists of a payment of $1600 today, a payment of $2400 in 3 months, and a payment…

A: According to the money's time value theory, cash is worth more now than it will be later. A future…

Q: Find the present value of payments of $1000 at the end of each year for five spot rates for 1 to 5…

A: Present value is the equivalent value of the future value based on the time value of money and…

Q: Q5: For an annual benefit of $50,000, how many years does it take for this value to drop below $500…

A: To find present value, we need to multiply the amount by discount factor. Discount factor depends on…

Q: An ovedraft interest of 15%per annum is negotiated on the overdrawn balance at the end of each…

A: The objective of this question is to calculate the interest on an overdraft of R235,256 at an annual…

Q: You have the income of $70,000 this year and the income of $105,000 next year. The market rate is 5%…

A: Income this year = $70,000Income next year = $105,000Market rate = 5% p.aSpending this year =…

Question

The sales and profit for two years are as below:
Sales Profit
2020 60000 17000
2021 90000 32000
Calculate Break Even Point (BEP)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

An apartment property is expected to generate a rental income of $255,000 in year 1 that will grow at an annual rate of 2.5% over the following years. The property will be sold at the end of year 10 for $4.5 million. 1. What is the PV of the property's 10-year rental income and sale price at the end if the annual discount rate is 8.5 % ?
Which of the following would provide the greatest return on $15,000 if it is invested at a nominal rate of 6% for one year? Group of answer choices quarterly compounding semi-annual compounding annual compounding monthly compounding
You are working on a project, that is using a yearly nominal interest rate of 15% per year, which is being compounded on a monthly basis. What is the effective quarterly rate? 16.08% 3.75% 3.80% 15.00% 15.87%
1) what is the discount yield on a 9-month T-bill sold for RM925, assuming there are 365 days in a year?
someone solve this questio but not by excel
using computation solution (not excel)
music studio predicts its future yearly net income (loss) to be as follows: Year 1: - $120Year 2: + $20Year 3: + $90Year 4: - $10Year 5: + $30Year 6: + $30Year 7: + $30Year 8: + $40 What is the NPV of the company, considering a discount rate of 10%?
Please show working Someone promises to pay you $1,000 in years 5, 10 and 15 for a total of $3,000. Assume your required return is 8%. a. what is the duration of this promise to pay you $3,000 over 15 years? b. what's the convexity? c. using the duration estimate alone, what is the estimated percentage price change in t=0 value if rates are expected to increase 2%?
ali business with 780000 is expected to grow at 10% per year compounded annually for the next 4 years. Find (a) the expected future value (b) if funds from sale of the business today would be placed in an account yielding 6% compounded semi annually, what would be the minimum acceptable price for the business at this time
A product is bought for an amount of P50,000 which will be sold after 7 years.Calculate the constant declining percentage(k). Use Double Declining Balance Method.
The demand for a product during the next ten years will be such that revenues will be $100,000 the first year and will increase by $10,000 each year thereafter. If inflation is assumed to be 6% per yuear and the company uses 10% in its economic studies, what is the present worth of the revenues expressed in present dollars?