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Ch_11_HW_A_Solutions

# Ch_11_HW_A_Solutions - Ch 11 HW A Solutions 1 Variable Cost...

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Ch 11 HW A Solutions 1 Ch 11 HW A Solutions 1. Variable Cost per unit is: 0.31 + 1.09 = 1.40 2. Total Costs for year = Fixed Cost + Total Variable Cost = 60,000 + (969,000 * 1.40 ) = 1,416,600.00 3. Cash break even = FC/(P – VC) = 60,000 / (2.50 – 1.40 ) = 60,000 / 1.10 = 54,545.45 round up to 54,546 4. Accounting break even = (FC + D) / (P – V) = (60,000 + 90,000) / (2.50 - 1.40 ) = 150,000 / 1.10 = 136,363.64 round up to 136,364 5. Accounting break even = (FC + D) / (P – V) = ( 880,000 + 2,400,000 / 10 ) / ( 45.00 4.40 ) = ( 880,000 + 240,000.00 ) / 40.60 = 27,586.21 round up to 27,587 6. Cash break even = FC / (P – VC) = 880,000 / ( 45.00 – 4.40 ) = 21,674.88 round up to 21,675 7. Financial break even = (FC + OCF) / (P – V) Finding OCF, PV = 2,400,000 N = 10 I/Y = 23% FV = 0 PMT = ? PMT = - 631,700.3027 OCF = 631,700.3027

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Ch 11 HW A Solutions 2 Financial break even = ( 880,000 + 631,700.3027 ) / ( 45.00 4.40 ) = 1,511,700.3027 / 40.60 = 37,234.00 round up to 37,234 8. Accounting break even = (FC + D) / (P – V) = ( 20,000,000 + 1,000,000 ) / ( 3,300.00 87.00 ) = 21,000,000 / 3,213.00 = 6,535.95 round up to 6,536 9. Cash break even = FC / (P – V) = 20,000,000 / ( 3,300.00 87.00
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Ch_11_HW_A_Solutions - Ch 11 HW A Solutions 1 Variable Cost...

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