Given the following information, what is the financial break-even point? Initial investment = $390,000; variable cost =
Question:
Given the following information, what is the financial break-even point? Initial investment = $390,000; variable cost = $120 per unit; fixed cost = $65,000; price = $150; life = six years; required return = 10%; depreciation = $45,000. Ignore taxes.
A) 1,392 units
B) 2,600 units
C) 4,167 units
D) 4,463 units
E) 5,152 units
Find the accounting break-even point given the following information: Price = $50 per unit; variable cost = $35 per unit; fixed costs = $50,000; depreciation = $10,000.
A) 1,160 units
B) 2,298 units
C) 3,333 units
D) 3,429 units
E) 4,000 units
What is the degree of operating leverage? Sales = 100,000 units; price = $50 per unit; variable cost = $30 per unit; fixed costs = $1,250,000; depreciation = $250,000; tax rate = 34%.
A) 2.22
B) 2.37
C) 2.63
D) 3.16
E) 3.22
Suppose that a project has a DOL = 0.55. If the quantity being produced increases from 96 units to 100 units, what is the expected percentage change in operating cash flow?
A) 2.3%
B) 3.1%
C) 4.2%
D) 5.5%
E) 6.2%