1.) Ajax corporation has a project with a 10 year life and a $200,000 cost. The...

1.) Ajax corporation has a project with a 10 year life and a $200,000 cost. The project is depreciated straight life over the life of the project. Other fixed costs amount to $400,000 and variable costs per unit are $30. If the company intends on selling 50,000 units and has a 10% return requirement, calculate the company’s financial break-even price

2.) Scorpio Inc. is a seafood company specializing in crayfish. Each pound of crayfish cost $25 to produce and can be sold for $100. The company has fixed overhead costs of $300,000 per year, and can claim depreciation of $50,000 per year. What is the cash break-even quantity of sales for Scorpio Inc.

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jeff jeffy answered 2 years ago

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