A project will generate sales of $46,347 each. The variable costs are $19,519 and the fixed...

A project will generate sales of $46,347 each. The variable costs are $19,519 and the fixed costs are $19,215. The project will use an equipment worth $119,505 that will be depreciated on a straight-line basis to a zero book value over a 11-year life of the project. If the tax rate is 13%, what is the operating cash flow

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A project will generate sales of $52,900 each. The variable costs are $13,506 and the fixed...

A project will generate sales of $52,900 each. The variable costs are $13,506 and the fixed costs are $13,079. The project will use an equipment worth $111,251 that will be depreciated on a straight-line basis to a zero book value over a 9-year life of the project. If the tax rate is 23%, what is the operating cash flow? Note: Enter your answer rounded off to two decimal points.

A project currently generates sales of $9million, variable costs equal 40% of sales, and fixed costs...

A project currently generates sales of $9million, variable costs equal 40% of sales, and fixed costs are $1.8 million. The firm’s tax rate is 30%. Assume all sales and expenses are cash items. a. What are the effects on cash flow if sales increase from $9million to $9.9m? (Input the amount as positive value. Enter answer in dollars not millions) b. What are the effects on cash flow if variable costs increase to 55% of sales? (Input amount as a...

A 10-year project is expected to generate annual sales of $262100, variable costs of $40543, and...

A 10-year project is expected to generate annual sales of $262100, variable costs of $40543, and fixed costs of $49005. The annual depreciation is $23639 and the tax rate is 27 percent. What is the annual operating cash flow Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

A project currently generates sales of $15 million, variable costs equal 60% of sales, and fixed...

A project currently generates sales of $15 million, variable costs equal 60% of sales, and fixed costs are $3.0 million. The firm’s tax rate is 30%. Assume all sales and expenses are cash items. a. What are the effects on cash flow, if sales increase from $15 million to $16.5 million? (Input the amount as positive value. Enter your answer in dollars not in millions.) Cash flow: increases or decreses by __________? b. What are the effects on cash flow,...

A project currently generates sales of $16 million, variable costs equal 50% of sales, and fixed...

A project currently generates sales of $16 million, variable costs equal 50% of sales, and fixed costs are $3.2 million. The firm’s tax rate is 40%. Assume all sales and expenses are cash items. a. What are the effects on cash flow, if sales increase from $16 million to $17.6 million? (Input the amount as positive value. Enter your answer in dollars not in millions.) Cash Flow____ by____ b. What are the effects on cash flow, if variable costs increase...

AD Company estimates that variable costs will be 70% of sales and fixed costs will total...

AD Company estimates that variable costs will be 70% of sales and fixed costs will total $1,800,000. The selling price of the product is $10, and 700,000 units will be sold. Instructions: Using the mathematical equation (a) Compute the break-even point in units and dollars. (b) Compute the margin of safety in dollars and as a ratio. (c) Compute net income.

Hamood Plumbing Co. estimates that variable costs will be 70% of sales and fixed costs will...

Hamood Plumbing Co. estimates that variable costs will be 70% of sales and fixed costs will total OMR 2,160,000. The selling price of the product is OMR 10, and 750,000 units will be sold. Instructions Using the mathematical equation, (a) Compute the break-even point in units and Omani Riyals. (b) Compute the margin of safety in Riyals and as a ratio. (c) Compute net income. Problem 2 Ibri, Inc. owns a machine that produces baskets for the gift packages the...

Glacial Company estimates that variable costs will be 63.2% of sales, and fixed costs will total...

Glacial Company estimates that variable costs will be 63.2% of sales, and fixed costs will total $655,000. The selling price of the product is $3.90. Compute the break-even point in (1) units and (2) dollars. a. Break even sales __ units b. Break even sales __ $$ Assuming actual sales are $2,115,000, compute the margin of safety in (1) dollars and (2) as a ratio. a. Margin of safety __ $$ b. Margin of safety ratio (as percentage)

At XLT Inc., variable costs are $80 per unit, and fixed costs are $40,000. Sales are...

At XLT Inc., variable costs are $80 per unit, and fixed costs are $40,000. Sales are estimated to be 4,000 units. a. How much would absorption costing operating income differ between a plan to produce 8,000 units and a plan to produce 10,000 units? b. How much would variable costing operating income differ between the two production plans?

If variable costs per unit are 70% of sales, fixed costs are $290,000 and target net...

If variable costs per unit are 70% of sales, fixed costs are $290,000 and target net income is $70,000, required sales are $1,200,000 I know the answer is true but I don't know how/why. Can you please show your calculation? Thank you

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