Question: Annual variable production costs for a facility operating at 100% capacity are $280000. Annual fixed expenses are $250000, it is taken into account that the
Annual variable production costs for a facility operating at 100% capacity are $280000. Annual fixed expenses are $250000, it is taken into account that the overhead costs will not change with the production speed. Total annual sales are $560000 and the product is sold for $5/kg. a-What is the breakeven point of kg product per year? (10 points) b- If the income tax rate is 40% of the gross profit, what will be the gross annual profit and net profit for this facility? (10 points) c- What would be the cash flow of the factory with the annual depreciation amount of $13000
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