Question: Question 1 is the starting questing. Question 8 refers to question 1. Questions 9-14 refer to question 8. first image given original numbers. Question 8

1. Questions 9-14 refer to question 8. first image given original numbers.

Question 8 revises some of those numbers. questions 9-12 refer to question

Question 1 is the starting questing.

Question 8 refers to question 1.

Questions 9-14 refer to question 8.

first image given original numbers. Question 8 revises some of those numbers. questions 9-12 refer to question 8

Firm A has $100 million of operating capital, all of which is financod by common equity The company produces output at a cost of $3.50 per unit that can be sold for $5 per unit. The company is taxed at a marginal rate of 25% and has no fixed operating costs if the company sells 15 million units, how much net income wili be earned? Assume that the firm could restructure its operations such that it would incur annual fixed operating costs of $20m, but the cost per unit of producing output would fall to $1.75. What would ROIC be at 15 mitlion units sold? QUESTION 9 What is ROE \& 15 million units sold? QUESTION 10 If sales increased to 25 milion unis, what is ROIC? QUESTION 11 If salus increased to 25 million units, what is ROF? If sales decreased to 5 million units, what is ROIC? QUESTION 13 If sales decreased to 5 million units, what is ROE? QUESTION 14 What is the firm's operating breakeven (units sold) with the restructured operations? Round to the nearest whole number

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