Given the following information: Price/Unit225 VC/Unit75 FC500,000 Tax Rate21% Rate10% Machine Cost3,000,000 Life4 Depreciation Straight Line 1)Calculate

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Given the following information:

Price/Unit 225

VC/Unit 75

FC 500,000

Tax Rate 21%

Rate 10%

Machine Cost 3,000,000

Life 4

Depreciation Straight Line

1) Calculate the equivalent annual cost of the machine. (Round to 2 decimals)

2) Calculate the financial break-even number of units for the project. (Round to 2 decimals)

3) Using the FBE units, calculate the annual operating cash flows for the project. (Round to 2 decimals)

4) Calculate the accounting break-even number of units for the project. (Round to 2 decimals)

Related Book For answer-question

Cost Accounting A Managerial Emphasis

ISBN: 978-0136126638

13th Edition

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

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Posted Date: Nov 06, 2023 12:57 AM

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Given the following information: Price/Unit225 VC/Unit75 FC500,000 Tax Rate21% Rate10% Machine Cost3,000,000 Life4 Depreciation Straight Line 1)Calculate

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Lets calculate the values step by step 1 Calculate the Equivalent Annual Cost EAC of the machine usi... View the full answer

Cost Accounting A Managerial Emphasis

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