5. The Newcastle Utility Company has fixed costs of $20,000 per month and sells electricity for...
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5. The Newcastle Utility Company has fixed costs of $20,000 per month and sells electricity for $0.015 per kilowatt-hour. It costs them $0.005 per kilowatt-hour to produce the electricity. a) What is Newcastle's break-even point? b) What is Newcastle's DOL at a sales level of 2,750,000 kilowatt hours? 6. The W. V. Scott Company had sales last year of $600,000, a NOI of $20,000, and a DOL of 4. Assume that fixed costs are the same this year as last year. a) Suppose that next year's sales are $630,000. What will next year's NOI be? b) Suppose that next year's sales are $550,000. What will next year's NOI be? c) Next year's NOI is $25,000. What must sales be for that year? 7. The Magee Publishing Company last year had sales of $800,000, an NOI of $20,000, and a DOL of 6. What will its NOI be if sales increase to $900,000? 5. The Newcastle Utility Company has fixed costs of $20,000 per month and sells electricity for $0.015 per kilowatt-hour. It costs them $0.005 per kilowatt-hour to produce the electricity. a) What is Newcastle's break-even point? b) What is Newcastle's DOL at a sales level of 2,750,000 kilowatt hours? 6. The W. V. Scott Company had sales last year of $600,000, a NOI of $20,000, and a DOL of 4. Assume that fixed costs are the same this year as last year. a) Suppose that next year's sales are $630,000. What will next year's NOI be? b) Suppose that next year's sales are $550,000. What will next year's NOI be? c) Next year's NOI is $25,000. What must sales be for that year? 7. The Magee Publishing Company last year had sales of $800,000, an NOI of $20,000, and a DOL of 6. What will its NOI be if sales increase to $900,000? 5. The Newcastle Utility Company has fixed costs of $20,000 per month and sells electricity for $0.015 per kilowatt-hour. It costs them $0.005 per kilowatt-hour to produce the electricity. a) What is Newcastle's break-even point? b) What is Newcastle's DOL at a sales level of 2,750,000 kilowatt hours? 6. The W. V. Scott Company had sales last year of $600,000, a NOI of $20,000, and a DOL of 4. Assume that fixed costs are the same this year as last year. a) Suppose that next year's sales are $630,000. What will next year's NOI be? b) Suppose that next year's sales are $550,000. What will next year's NOI be? c) Next year's NOI is $25,000. What must sales be for that year? 7. The Magee Publishing Company last year had sales of $800,000, an NOI of $20,000, and a DOL of 6. What will its NOI be if sales increase to $900,000?
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Related Book For
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1119036432
7th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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