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A: Answer a. Contribution = Sales - Variable costs Contribution = $18,169.3 - ($6129.7 + $4756 + 40% of…
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Q: breakeven point in sales dollars is:
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A: The formula to calculate return on Investment is: Return on Investment = Operating Income/ Average…
Q: What is the breakeven sales in dollars if : Total sales, $120,000; Total variable cost, $ 48,000;…
A: Contribution margin = Total sales - Total variable cost = 120,000 - 48,000 = $72,000
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A: Formulas: Residual income = Net Operating income - Average Invested Capital x Required rate of…
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A: Based on the given information, Contribution margin % = Sales price-Variable expenseSales…
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A: Cost Analysis is based on Time value of money. This means a dollar today is worth more than a dollar…
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A: Break even point = Fixed cost / Contribution margin
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A: Degree of operating leverage (DOL): DOL reflects the variable and fixed cost relationship of an…
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A: A cost accounting system is a system of accounting that is helpful for the internal management to…
Q: If a company's variable costs are 70% of sales, which formula represents the computation of peso…
A: Solution: If variable cost is 70% of sales and profit is 10% for sale, it means: Fixed costs = 20%…
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A: Contribution margin ratio = Contribution margin / sales = 280000/400000 = 70%
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A: Investment cost = P 1.2 million Annual cash return = P 240000
Q: 3. A company has return on sales of 20%, income of $50,000, selling price of $10, and a contribution…
A: Solution.. Income = $50,000 Return on sales = 20% Contribution margin ratio = 40% Selling price…
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A: Break even point(BEP)= Fixed cost/Contribution per unit Variable cost ratio + Contribution Ratio=…
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A: Return on investment is often calculated by dividing the controllable margin by either average…
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A: Economic Order Quantity(EOQ) is amongst the techniques which are used for inventory management. It…
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A: P+ 100 =X^2 + 15X where P = profit X = no. of units Sold
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A: Return on Investment: This percentage shows how much profit we have made by investing in how many…
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A: Dollar sales volume can be calculated by dividing the sum of fixed cost and target income with…
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A:
Q: Consider the following: Fixed expenses P78,000 Unit contribution margin 12 Target net profit 42,000…
A: Target Net Profit = P42,000 Total Contribution required = Target Net profit+ Fixed Expenses Total…
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A: Lets understand the basics. For calculating net profit(loss), we will need to use below formula. Net…
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A: Profit is incurred in a business or a company by subtracting expenses from revenue of the company.…
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A: Return on investment = Net operating income / Average operating assets where, Average operating…
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A: Modified Internal rate of return (MIRR) is a modified version of IRR in capital budgeting process to…
Q: Given the following data: Average operating assets Total liabilities $728, 000 $ 51,840 $432,000…
A: Return on investment = Net operating income / Average operating assets where, Average operating…
Q: McKee Corporation has annual fixed costs of $12 million. Its variable cost ratio is 0.60.a.…
A: Break-even point: It can be defined as that level of production at which the total costs of the firm…
Q: A project currently generates sales of $11.6 million, variable costs equal to 50% of sales, and…
A: The formula concept used for computation is:
Q: Product Q has a sales of 80,000 units per annum and other details as follows: Material=4,80,000…
A: The cumulative amount of money used by a company or project to acquire income is referred to as…
Q: Selling price per unit -$17; Selling & administrative (fixed expense)- $130 000; Interest expense…
A: Contribution margin is computed as difference between sale price and variable expenses.
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- Georgetown Berbice Income before tax. 20,000 75,000Required rate of return. 12% 12%Investment 100,000 500,000 Calculate the residual income for Georgetown a. 1,500 b. 150,000 c. 15,000 d. 8,000Calculate the equivalent AW at i= 10% per year for the following net cash flow: Year Cash flow, $ -2,000 2. -2,000 3 -2,000 4 5,000 5,000 5,000 Select one: O a. 573.9 O b. 1,431.9 O c. 1,860.9 O d. 1,002.9 O e. 2.289.9Find the value of P for which the inflows will equal the outflows. Find the effective rate first. Rate Year Outflows 0 1 2 3 4 5 678 9 10 -P -2P -4P -8P -16P $1,530 $2,545 $3,269 $3,490 18% pycd Inflows $24,000 $30,000 $36,000 $42,000 $48,000 $54,000
- The following are a project's cash flows. What is the projects year - 110155450 cash flows - 9.70% 5. 14.660%. 8.64% 10.78% . =. 16.94% IBR? $450 $40 3 8490What is the project's MIRR? r = 10.00% 0 Year Cash flows O a. 22.51% O b. 11.75% O c. 17.21% O d. 14.81% O e. 15.65% -$875 1 $300 2 $320 3 $340 $360($ thousands) Present value at 19% Net cash flow Net present value 0 1 4 -13,700 -1,594 -13,700 -1,339 3,541 (sum of PVs). Period 2 3 6 3,057 6,433 10,644 10,095 5,867 2,159 3,817 5,308 4,230 2,066 5 7 3,379 1,000 Restate the above net cash flows in real terms. Discount the restated cash flows at a real discount rate. Assume a 19% nominal rate and 11% expected inflation. NPV should be unchanged at +3,541, or $3,541,000. Note: Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest whole number. Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Real Net Cash Flows NPV
- =NPV(B26,I27:R27)-B24 B26 = discount rate of 9% B24 = initial investment of $30m I27:R27 = yearly cash flows: what are the cash flows for each year?Help Save & Exit Su AVKAOX224 Corp. has provided the following cost, price, and sales data: Per Unit Selling price 2$ 240 Variable 54 expenses Contribution $ 186 margin AVKAOX224 is currently selling 8,000 units per month. Fixed expenses are $880,000 per month. (ID#61517) AVKAOX224's marketing manager would like to cut the selling price by $28 and increase advertising spending by $60,000 per month. The marketing manager predicts that these changes would increase monthly sales quantity by 20%. Q: What would be the overall effect on AVKAOX224's monthly net operating income of this change? (Note: A POSITIVE number indicates an INCREASE in net operating income, and a NEGATIVE number indicates a DECREASE in net operating income) Multiple Choice -31,200 dollars -15.768 dollarsgnment (II) Saved Fox Co. has identified an investment project with the following cash flows. Year Cash Flow $1,290 1,240 1,590 2. 3 1,950 a. If the discount rate is 9 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value at 17 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 23 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Present value at 9 percent b. Present value at 17 percent C. Present value at 23 percent re to search
- What is Project A's Modified Internal Rate of Return with a WACC of 7.75%? YEAR 0 1 2 3 4 CASH FLOWS Project A -$1050 675 650 Project B -$1050 360 360 360 360Year Net Cash Flow Discount Factor Present Value (using the factor) Present Value (using Excel formula) 0 $ (3,500,000.00) 1 $ (3,500,000.00) ($3,500,000.00) 1 $ 900,000.00 0.90909 $ 818,181.00 $818,181.82 2 $ 900,000.00 0.82645 $ 743,805.00 $743,801.65 3 $ 900,000.00 0.75131 $ 676,179.00 $676,183.32 4 $ 900,000.00 0.68301 $ 614,709.00 $614,712.11 5 $ 900,000.00 0.62092 $ 558,828.00 $558,829.19 Net Present Value $ (88,298.00) $ (88,291.91) 3. Now assume that inflation is estimated as a 5% increase each year (starting with Year 1) for the entire 5 years. Calculate the new net cash flow values for each year. start with 5% increase for Year 1 net cash flow. Year Net Cash Flow 0 $…Year Net Cash Flow Discount Factor Present Value (using the factor) Present Value (using Excel formula) 0 $ (3,500,000.00) 1 $(3,500,000.00) ($3,500,000.00) 1 $900,000.00 0.90909 $818, 181.00 $818, 181.82 2 $ 900,000.00 0.82645 $743,805.00 $743, 801.65 3 $900,000.00 0.75131 $676, 179.00 $676, 183.32 4 $ 900,000.00 0.68301 $614,709.00 $614,712.11 5 $900,000.00 0.62092 $558, 828.00 $558,829.19 Net Present Value $(88,298.00) $(88,291.91) 3. Now assume that inflation is estimated as a 5% increase each year (starting with Year 1) for the entire 5 years. Calculate the new net cash flow values for each year. Hint: You should start with 5% increase for Year 1 net cash flow.