In each of the following cases, calculate the accounting break-even and the cash break even points. Ignore
Question:
In each of the following cases, calculate the accounting break-even and the cash break even points. Ignore any tax effects in calculating the cash break-even.
Unit Price Unit Variable Cost Fixed Costs Depreciation $2,980 $1,640 $7,200,000 $2,900,000 44 39 275,000 183,000 3 5,800 1,100
Step by Step Answer:
Fundamentals Of Corporate Finance
ISBN: 9781265553609
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Related Video
Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.
Students also viewed these Business questions
-
In each of the following cases calculate the indicated derivatives, justifying all operations. (a) (b) (c) (d) dz
-
In each of the following cases discuss how you, as a portfolio manager, would use financial futures to protect the portfolio. a. You own a large position in a relatively illiquid bond that you want...
-
In each of the following cases involving travel expenses, indicate how each item is reported on the taxpayers tax return. Include any limitations that might affect its deductibility. a. Marilyn lives...
-
Assume a portfolio of two assets with the following total value (Al) covariance matrix 1 -0.5 -0.5 1 The sum of the 99% component VaRs of the two assets is:
-
A student was asked to identify a compound. In an effort to do so, he first dissolved the compound in water. He found that no precipitate formed when hydrochloric acid was added, but when H2S was...
-
What are the objectives of the external monitoring domain of the maintenance model?
-
Because of friction, a \(0.10-\mathrm{kg}\) hockey puck initially sliding over ice at \(8.0 \mathrm{~m} / \mathrm{s}\) slows down at a constant rate of \(1.0 \mathrm{~m} / \mathrm{s}^{2}\) until it...
-
What organizational form would warehouse operators and truck hauling companies adopt?
-
Question four (20mks) Explain how the following are fundamental in appraising income property A. potential gross income (16mks) B.Net operating income (4mks) Question five (20mks) Explain the theory...
-
You have been serving as Electroscans project manager and are now well along in the project. Develop a narrative status report for the board of directors of the chain store that discusses the status...
-
Your small remodeling business has two work vehicles. One is a small passenger car used for job site visits and for other general business purposes. The other is a heavy truck used to haul equipment....
-
A project has the following estimated data: Price = $53 per unit; variable costs = $22 per unit; fixed costs = $31,460; required return = 12 percent; initial investment = $46,200; life = four years....
-
How long will it take to pay off a loan of $50,000 at an annual rate of 10 percent compounded monthly if you make monthly payments of $600?
-
On a frictionless air table, a 150g puck moving to the right with a speed of 1.2m/s, collides with a 250g puck initially at rest. Determine the total momentum of the two pucks after collision in kgm/s
-
Insert the step number 1 through 10 to show the correct sequence of steps involved in the effective receipt of material at a facility. Step 1 being the first step in the receiving process. (20 pts)...
-
The equilibrium constant, Kc, for the reaction show below is 0.0280 at 350.0 C. 2X (g) +2Y(g) Z(g) Determine the value of Kp for the reaction at this temperature. Kp:
-
A force of 42.0 N is used to push a 9.50 kg box down a 15 incline. There is a coefficient of kinetic friction of 0.410. Determine the acceleration of the box. Give your answer in 3 significant...
-
How does the "else" clause contribute to the robustness and expressiveness of programming constructs, enabling the implementation of complex decision-making logic and facilitating the handling of...
-
Show that if we identify the complex numbers z, u; with vectors in the plane, then their Euclidean dot product is equal to Re(z w).
-
The figure shows a bolted lap joint that uses SAE grade 8 bolts. The members are made of cold-drawn AISI 1040 steel. Find the safe tensile shear load F that can be applied to this connection if the...
-
Consider the following information about two alternative credit strategies: The higher cost per unit reflects the expense associated with credit orders, and the higher price per unit reflects the...
-
Suppose a corporation currently sells Q units per month for a cash-only price of P . Under a new credit policy that allows one months credit, the quantity sold will be Q 9 and the price per unit will...
-
A public school district recently converted its budget from an object to a program format. The district is organized into three instructional divisions: elementary school (kindergarten through grade...
-
(a) In the Die Hard question, imagine you have two jugs that have capacity of 5 and 8 (litres, gallons, hogsheads; it really doesn't matter). Find a way to obtain 1, 2, 3, 4, and 5. (b) Now you have...
-
The balance in the Unrealized Gains and Losses on Available-for-sale Securities account, since the investment was purchased, would appear in what financial points?
-
Calculate the following distances. ( Round your answer to three decimal places. ) Distance from Observation 1 0 and Observation 4 : Distance from Observation 1 0 and Observation 2 0 : Distance from...
Study smarter with the SolutionInn App