Course Hero Logo

Verily value expects to sell 12000 units 2 percent

Doc Preview
Pages 44
Identified Q&As 92
Solutions available
Total views 9
63)Verily Value expects to sell 12,000 units, ±2 percent.The expected variable cost per unit is $9, ±3 percent, and theexpected fixed costs are $25,000, ±1 percent. Thedepreciation expense is $7,500. The sale price is estimated at$24 a unit, ±2 percent. What is the sales revenue under theoptimistic case scenario?Version 125
View full document
64)The Muffin Tin expects to sell 2,000 units, ±10percent. The expected variable cost per unit is $4, ±3 percent,and the expected fixed costs are $9,500, ±1 percent. Thedepreciation expense is $5,400. The sale price is estimated at$12 a unit, ±3 percent. The company is conducting asensitivity analysis on thesales price using a salesprice estimate of $12.35.What will be the earningsbefore interest and taxes?
View full document
65)You are considering a new project with depreciation of$962, fixed costs of 5,000, and a sales price of $13.49. Thevariable cost per unit is $6.26. Ignore taxes. What is theaccounting break-evenlevel of production?
View full document
66)The accounting break-even production quantity for aproject is 7,209 units. The fixed costs are $34,780, and thecontribution margin is $11. Assume a zero tax rate. What isthe projected depreciationexpense?A)$43,600B)$45,050C)$44,519D)$47,053E)$47,143
67)A project has anaccounting break-evenpoint of 3,800 units. TheVersion 126
fixed costs are $3,208, and the projected variable cost per unitis $16.42. The project requires an initial investment in fixedassets of $840 that will be depreciated straight-line to zeroover the 4-year life of theproject. What is theprojected sales price givena zero tax rate?
View full document
68)A proposed project has fixed costs of $132,400,depreciation expense of $53,620, and a sales quantity of 7,350units. Ignore taxes. What is the contribution margin if theprojected level of sales isthe accounting break-evenpoint?
View full document
69)A project has a contribution margin of $13.27,projected fixed costs of $78,900, projected variable costs perunit of $9, and a projected financial break-even point of16,230 units. The depreciation expense is $36,200, and the taxrate is 35 percent. What is the operating cash flow at this levelof output?
View full document
Course Hero Badge

Want to read all 44 pages?

Previewing 28 of 44 pages Upload your study docs or become a member.
Course Hero Badge

Want to read all 44 pages?

Previewing 28 of 44 pages Upload your study docs or become a member.
Course Hero Badge

End of preview

Want to read all 44 pages? Upload your study docs or become a member.