A company produces shirts and sells them on average for $40 with a unit contribution margin of
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- A company produces shirts and sells them on average for $40 with a unit contribution margin of 32%. If the total fixed costs are $300,000:
- What is the breakeven point?
- How many units must be sold to earn $95,000?
- The company La Pepita Dorada produces 780,000 monthly units of an item that is sold at $21.50 each, which leaves a profit after taxes (t=30%) of $2 million. If you have the necessary spare capacity and your fixed costs are $3.35 million per month, would you accept an additional order of 120,000 units that offer to pay you $18.50 each? What would be the reason?
- Company A sells 188 units at a price of $2.5 per unit. The variable cost per Unit is $1.75 and it records total fixed costs of $63.
- Calculate the break-even point in units and in value for firm A.
- Suppose the company wants to make a profit of $35.
- Calculate the necessary level of sales in value and units required, to achieve said profit.
- Firms A, B and C record the results presented in the...
Firms A, B and C record the results presented in the following table. Calculate for each company the ROIC (%) and FCF = NOPAT - i. Assume that the WACC is 12.5% and that the amount of capital invested in each company is $1,200 in company A, $900 in company B, and $700 in company C.
A | B | C | |
NOPAT ($)
| 200
| 200
| 200
|
growth rate (g)
| 8%
| 12%
| 18%
|
Net investment/NOPAT
| 90%
| 80%
| 25%
|
Net investment ($)
| $180
| $160
| $50
|
Increase in NOPAT ($) | $16
| $24
| $36
|
Related Book For
Introduction To Management Accounting
ISBN: 9780273737551
1st Edition
Authors: Alnoor Bhimani, Charles T. Horngren, Gary L. Sundem, William O. Stratton, Jeff Schatzberg
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