Question
In: Finance
You are given the following projections for a project: Units sold per year: 63,778 Price per...
You are given the following projections for a project:
| Units sold per year: | 63,778 |
| Price per unit: | $ 5.57 |
| Variable cost per unit: | $ 2 |
| Fixed costs per year: | $ 14,201 |
| Initial cost of manufacturing equipment: | $ 95,681 |
| Project life (years): | 3 |
| Initial net working capital: | $ 15,533 |
| Tax rate: | 21% |
The cost of manufacturing equipment will be depreciated straight-line to zero over the project’s life.
Note: units sold per year, price per unit, variable cost per unit, fixed cost per year remain the same for each year of the project.
What is the Net Income for year 2 of the project?
Round your answer to 2 decimal places (e.g. 125.74632 = 125.75).
Solutions
jeff jeffy answered 1 year agoRelated Solutions
You are given the following projections for a project: Units sold per year: 64,219 Price per...
You are given the following projections for a project:
Units sold per year:
64,219
Price per unit:
$ 4
Variable cost per unit:
$ 1
Fixed costs per year:
$ 12,724
Initial cost of manufacturing equipment:
$ 99,307
Project life (years):
2
Initial net working capital:
$ 14,184
Tax rate:
21%
The cost of manufacturing equipment will be depreciated
straight-line to zero over the project’s life.
Note: units sold per year, price per unit, variable cost per
unit, fixed cost...
How do you determine Firm's maximum profit if given quantities of units sold, price per unit...
How do you determine Firm's maximum profit if given quantities
of units sold, price per unit sold, marginal revenue of unit sold,
and marginal cost?
Currently, the sales of a company is $12,800,000 per year: price per unit $12.8; units sold...
Currently, the sales of a company is $12,800,000 per year: price
per unit $12.8; units sold 1,000,000 per year; direct cost per unit
$9.60; A/R 25% of $ sales (ignore A/P); inventory 25% of direct
cost; cash operating expense $890,000 per year; annual depreciation
$600,000; tax rate 34%; capital expenditure is zero. Now you are
estimating the free cash flow for the next year when the unit sales
price changes to $15.36, thus changing $ sales; however, the number
of...
Price per Unit Variable Cost per Unit Units Sold per Year Basic $ 700 $ 220...
Price
per Unit
Variable Cost
per Unit
Units Sold
per Year
Basic
$
700
$
220
700
Retest
1,050
580
200
Vital
4,600
3,100
100
Variable costs include
the labor costs of the medical technicians at the lab. Fixed costs
of $490,000 per year include building and equipment costs and the
costs of administration. A basic "unit" is a routine drug test
administered. A retest is given if there is concern about the
results of the first test, particularly if...
You are given the following information: Units in beginning inventory 0 Units produced 40,000 Units sold...
You are given the following
information:
Units in beginning inventory
0
Units produced
40,000
Units sold
37,000
Selling price per unit
$120.00
Variable costs per unit:
Direct materials
$15.00
Direct labor
$30.00
Variable manufacturing
overhead
$5.00
Variable selling and
administrative
$3.00
Fixed expenses per year:
Fixed manufacturing
overhead
$600,000
Fixed selling and
administrative
$800,000
Based on this information, calculate the company's
operating income under both absorption costing and variable costing
approaches. If there is a difference between the two income...
You are given the following information: Units in beginning inventory 0 Units produced 40,000 Units sold...
You are given the following
information:
Units in beginning inventory
0
Units produced
40,000
Units sold
37,000
Selling price per unit
$120.00
Variable costs per unit:
Direct materials
$15.00
Direct labor
$30.00
Variable manufacturing
overhead
$5.00
Variable selling and
administrative
$3.00
Fixed expenses per year:
Fixed manufacturing
overhead
$600,000
Fixed selling and
administrative
$800,000
Based on this information, calculate the company's
operating income under both absorption costing and variable costing
approaches. If there is a difference between the two income...
A 5-year project is expected to generate annual sales of 9,600 units at a price of $83 per
A 5-year project is expected to generate annual sales of 9,600 units at a price of $83 per unit and a variable cost of $54 per unit. The equipment necessary for the project will cost $373,000 and will be depreciated on a straight-line basis over the life of the project. Fixed costs are $225,000 per year and the tax rate is 22 percent. How sensitive is the operating cash flow to a $1 change in the per unit sales price?
Easy Breeze company produced 100,000 units, sold 90,000 units at a selling price per unit of...
Easy Breeze company produced 100,000 units, sold 90,000
units at a selling price per unit of $450, and incurred the
following manufacturing costs:
Direct Materials = $40 per unit
Direct Labor = $18 per unit
Factory overhead costs:
Variable Factory Overhead = $23 per unit
Fixed Factory overhead = $250,000
Semi-variable Factory overhead cost is $70,000. The
company utilized 14,000 machine hours during this period. The
following additional information is provided semi-variable factory
overhead into variable and fixed factory overhead...
Easy Breeze company produced 100,000 units, sold 90,000 units at a selling price per unit of...
Easy Breeze company produced 100,000 units, sold 90,000
units at a selling price per unit of $450, and incurred the
following manufacturing costs:
Direct Materials = $40 per unit
Direct Labor = $18 per unit
Factory overhead costs:
Variable Factory Overhead = $23 per unit
Fixed Factory overhead = $250,000
Semi-variable Factory overhead cost is $70,000. The
company utilized 14,000 machine hours during this period. The
following additional information is provided semi-variable factory
overhead into variable and fixed factory overhead...
Beginning inventory 0 Units produced 27,000 Units sold 18,500 Selling price per unit $ 93 ...
Beginning inventory
0
Units produced
27,000
Units sold
18,500
Selling price per unit
$
93
Selling and administrative expenses:
Variable per unit
$
3
Fixed (total)
$
518,000
Manufacturing costs:
Direct materials cost per
unit
$
24
Direct labour cost per unit
$
14
Variable manufacturing overhead
cost per unit
$
9
Fixed manufacturing overhead cost
(total)
$
756,000
Since the new case is unique in design, management is anxious to
see how profitable it will be and has...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- This is all one question, thank you so much in advance. The Bigbee Bottling Company is...
- For Questions 1-3: consider the following code: public class A { private int number; protected String...
- You are tasked with assessing the health department’s intervention program in preventing recurrence of acute alcohol...
- Compare the MOSFET, JFET , and BJT and identify the reasons these devices behave differently. What...
- How would you use SAS Enterprise Miner to create a neural network model of your example?
- Explain the use of neural networking modeling in predictive analytics.
- Current Market Mix of Netflix, as detail as possible, please.
ADVERTISEMENT