Question: I understand the guidelines however the first section is needed for all 3 questions so please answer . Each of the three companies will be

 I understand the guidelines however the first section is needed for

I understand the guidelines however the first section is needed for all 3 questions so please answer .

Each of the three companies will be producing a new product line in the coming years and has the choice of producing the products in a large factory with a small number of workers or a small factory with a large number of workers. Each product will be sold for $10. 12.29 Accounting operating profit break-even: Twilight Candles will be producing a new line of dripless candles. If the large factory is chosen, the cost per unit to produce each candle will be $1.50, while the cost per unit will be $5.70 for the small factory. The large factory would have fixed cash costs of $2.4 million and a depreciation expense of $300 000 per year, while those expenses would be $520 000 and $100 000 in the small factory. Calculate the accounting operating profit break-even point for both factory choices for Twilight Candles. 12.30 Crossover level of unit sales: Andy Cleaning Solutions will be producing a new line of mops. If the large factory is chosen, the cost per unit to produce each mop will be $2.84, while the cost per unit will be $6.67 for the small factory. The large factory would have fixed cash costs of $2.5 million and a depreciation expense of $300 000 per year, while those expenses would be $460 000 and $100 000 in the small factory. Calculate the number of mops for Andy Cleaning Solutions for which the accounting operating profit is the same, regardless of the factory choice. 12.31 Pre-tax operating cash flow break-even: Lumo Ltd will be producing a new line of essential oils. If the large factory is chosen, the cost per unit to produce each oil will be $2.90, while the cost per unit will be $6.30 for the small factory. The large factory would have fixed cash costs of $2 million and a depreciation expense of $300 000 per year, while those expenses would be $500 000 and $100 000 in the small factory. Calculate the pre-tax operating cash flow break-even point for both factory choices for Lumo Ltd. 12.40 Wattle Ltd is starting to develop a new product for which the fixed cash expenditures are expected to be $93 000. The projected EBIT is $132 000 and the Accounting DOL will be 2.5. What is the cash flow DOL for the company? Each of the three companies will be producing a new product line in the coming years and has the choice of producing the products in a large factory with a small number of workers or a small factory with a large number of workers. Each product will be sold for $10. 12.29 Accounting operating profit break-even: Twilight Candles will be producing a new line of dripless candles. If the large factory is chosen, the cost per unit to produce each candle will be $1.50, while the cost per unit will be $5.70 for the small factory. The large factory would have fixed cash costs of $2.4 million and a depreciation expense of $300 000 per year, while those expenses would be $520 000 and $100 000 in the small factory. Calculate the accounting operating profit break-even point for both factory choices for Twilight Candles. 12.30 Crossover level of unit sales: Andy Cleaning Solutions will be producing a new line of mops. If the large factory is chosen, the cost per unit to produce each mop will be $2.84, while the cost per unit will be $6.67 for the small factory. The large factory would have fixed cash costs of $2.5 million and a depreciation expense of $300 000 per year, while those expenses would be $460 000 and $100 000 in the small factory. Calculate the number of mops for Andy Cleaning Solutions for which the accounting operating profit is the same, regardless of the factory choice. 12.31 Pre-tax operating cash flow break-even: Lumo Ltd will be producing a new line of essential oils. If the large factory is chosen, the cost per unit to produce each oil will be $2.90, while the cost per unit will be $6.30 for the small factory. The large factory would have fixed cash costs of $2 million and a depreciation expense of $300 000 per year, while those expenses would be $500 000 and $100 000 in the small factory. Calculate the pre-tax operating cash flow break-even point for both factory choices for Lumo Ltd. 12.40 Wattle Ltd is starting to develop a new product for which the fixed cash expenditures are expected to be $93 000. The projected EBIT is $132 000 and the Accounting DOL will be 2.5. What is the cash flow DOL for the company

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