1. Sales is $18 million, VC is 82% of Sales and Fixed Costs are 3 million. Depreciation will be $0.5 million a year. The project is for 5 years. Opportunity cost of capital is 8%
   1. What is the accounting breakeven revenue?
   2. What is the NPV breakeven?

What is the market structure of the firm for which you work currently or the firm that you would like to work for? As a manager, what would be the most important non-pricing strategy you would implement in order to enhance the firm’s revenue?

Identify the following as an asset, liability, or equity by writing the letter of the correct classification in the space provided.

  An upgrade to a compressor costs $30,000 and results in the following net revenues (income minus expenses).

Year      Net Revenue

1             $13,000

2               12,000

3               10,500

4                9,000

5                8,200

       Determine the internal rate of return.

A) What are the principles of tax system design?

B) What is the benefit of imposing GST on food? What are the disadvantages of imposing GST on food?

from the following angles: a. Implication on government revenue b. Implication on health c. Impact on the environment

Is it ethical for tobacco companies to sell a product that is known to be addictive and a danger to the health of the user? Is it relevant that the product is legal?

What are your thoughts on the sale of marijuana, both for medicinal and recreational purposes? Should firms be allowed to use this product for revenue?

The retail sales tax has become a popular way to finance state, county, and city governments as well as special districts. What are the pros and cons of reliance on the retail sales tax as a primary source of revenue, especially for local governments?

Warmack Machine Shop is considering a four-year project to introduce a new product. The project requires a new machinery. Buying the new machinery for $350,000 with $30,000 in shipping and $30,000 to intall, is estimated to result in incremental annual revenue of $200,000. The incremental variable cost is likely to be $25,000 and the incremental fixed cost is estimated to be $50,000. The inflation rate of 2.5% is estimated to affect Revenue, variable cost and the fixed cost going forward. The project falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $55,000. As a part of the NWC requirment, an initial investment in inventory of $20,000 along with an additional $3,100 in inventory has to be made for each succeeding year of the project. If the shop's tax rate is 35 percent and its discount rate is 9 percent, should the company implement the project?

The Bradford Company issued 10% bonds, dated January 1, with a face amount of $80 million on January 1, 2021 to Saxton-Bose Corporation. The bonds mature on December 31, 2030 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

Required:
1. to 3. Prepare the journal entries to record the purchase of the bonds by Saxton-Bose on January 1, 2021, interest revenue on June 30, 2021 and interest revenue on December 31, 2021 (at the effective rate). (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)