Question

In: Finance

A project has the following estimated data: Price=$62 per unit; variable costs =$28 per unit; fixed...

A project has the following estimated data: Price=$62 per unit; variable costs =$28 per unit; fixed costs=$27,300; required return= 12 percent; initial investment= $34,800; life= four years. Ignoring the effect of taxes, what is the accounting break-even quantity? The cash break-even quantity? The financial break-even quantity? What is the degree of operating leverage at the financial break-even level of output?

Solutions

Expert Solution

jeff jeffy answered 4 months ago
Next > < Previous

Related Solutions

A project has the following estimated data: price = $72 per unit; variable costs = $27.36...
A project has the following estimated data: price = $72 per unit; variable costs = $27.36 per unit; fixed costs = $8,000; required return = 14 percent; initial investment = $7,000; life = six years. Ignore the effect of taxes. a. What is the accounting break-even quantity? b. What is the cash break-even quantity? c. What is the financial break-even quantity? d. What is the degree of operating leverage at the financial break-even level of output?
A project has the following estimated data: price = $80 per unit; variable costs = $28.80...
A project has the following estimated data: price = $80 per unit; variable costs = $28.80 per unit; fixed costs = $5,500; required return = 10 percent; initial investment = $8,000; life = seven years. Ignore the effect of taxes. a. What is the accounting break-even quantity? b. What is the cash break-even quantity? c. What is the financial break-even quantity? d. What is the degree of operating leverage at the financial break-even level of output?
A project has the following estimated data: price = $75 per unit; variable costs = $29.25...
A project has the following estimated data: price = $75 per unit; variable costs = $29.25 per unit; fixed costs = $5,200; required return = 9 percent; initial investment = $9,000; life = seven years. Ignore the effect of taxes. a. What is the accounting break-even quantity? 142 114 170 156 135 b. What is the cash break-even quantity? 114 142 108 91 103 c. What is the financial break-even quantity? 153 184 168 138 122 d. What is the...
A project has the following estimated data: price = $54 per unit; variable costs = $28.08...
A project has the following estimated data: price = $54 per unit; variable costs = $28.08 per unit; fixed costs = $6,600; required return = 11 percent; initial investment = $10,000; life = three years. Ignore the effect of taxes.    a. What is the accounting break-even quantity?    b. What is the cash break-even quantity?    c. What is the financial break-even quantity?    d. What is the degree of operating leverage at the financial break-even level of output?
A project has the following estimated data: price = $79 per unit; variable costs = $41.87...
A project has the following estimated data: price = $79 per unit; variable costs = $41.87 per unit; fixed costs = $6,900; required return = 9 percent; initial investment = $10,000; life = six years. Ignore the effect of taxes.    a. What is the accounting break-even quantity?    b. What is the cash break-even quantity?    c. What is the financial break-even quantity?    d. What is the degree of operating leverage at the financial break-even level of output?
A project has the following estimated data: price = $66 per unit; variable costs = $43...
A project has the following estimated data: price = $66 per unit; variable costs = $43 per unit; fixed costs = $16,500; required return = 8 percent; initial investment = $25,000; life = five years. Ignoring the effect of taxes, what is the accounting break-even quantity? (Round your answer to 2 decimal places. (e.g., 32.16)) Break-even quantity What is the cash break-even quantity? (Round your answer to 2 decimal places. (e.g., 32.16)) Break-even quantity What is the financial break-even quantity?...
1) A project has the following information. Price is $62 per unit, variable cost is $41...
1) A project has the following information. Price is $62 per unit, variable cost is $41 per unit, fixed costs is $15500, required return is 12%, initial investment $24000, project life is 4 years. Ignoring taxes, What’s accounting breakeven What’s cash breakeven What’s financial breakeven? What’s DOL at financial breakeven level? 2) A stock has a beta of 1.05. The expected return of the market is 10%, and risk free rate is 3.8%. What’s the expected return of the stock?...
Given the following information: Selling Price (per unit): $10,000 Variable Costs (per unit): $7,000 Fixed Costs:...
Given the following information: Selling Price (per unit): $10,000 Variable Costs (per unit): $7,000 Fixed Costs: $200,000 Required Each of these are separate situations: What is the break-even point in total sales in dollars? How many units need to be sold to make a profit of $20,000? How many units need to be sold to make a profit of $20,000 if fixed costs increase from $200,000 to $250,000? How many units would they need to sell if they wanted to...
Given the following information: Selling Price (per unit): $10,000 Variable Costs (per unit): $7,000 Fixed Costs:...
Given the following information: Selling Price (per unit): $10,000 Variable Costs (per unit): $7,000 Fixed Costs: $200,000 Required Each of these are separate situations: What is the break-even point in total sales in dollars? How many units need to be sold to make a profit of $20,000? How many units need to be sold to make a profit of $20,000 if fixed costs increase from $200,000 to $250,000? How many units would they need to sell if they wanted to...
A project has a projected sales price of $99 a unit, variable costs per unit of...
A project has a projected sales price of $99 a unit, variable costs per unit of $58, annual fixed costs of $238,000, and annual depreciation of $139,000. The tax rate is 22 percent. What is the contribution margin for an analysis using sales units of 12,800? Multiple Choice $27.06 $38.97 $22.41 $41.00 $42.64
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT