The Apple marketing department has estimated demand for a new device and expects to sell 3...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Apple marketing department has estimated demand for a new device and expects to sell 3 million units at a price of $260 each. It costs $50 million each year to run the factory, independent of the level of production. Labor and components for each device add up to $160 per unit. Apple's marginal tax rate is 0.34, and the annual depreciation attributable to the project is $40 million. Part 1 What is EBIT in each year of operation (in $ million)? Part 2 What is the net operating profit after taxes-in each year of operation (in $ million)? The Apple marketing department has estimated demand for a new device and expects to sell 3 million units at a price of $260 each. It costs $50 million each year to run the factory, independent of the level of production. Labor and components for each device add up to $160 per unit. Apple's marginal tax rate is 0.34, and the annual depreciation attributable to the project is $40 million. Part 1 What is EBIT in each year of operation (in $ million)? Part 2 What is the net operating profit after taxes-in each year of operation (in $ million)?
Expert Answer:
Answer rating: 100% (QA)
Answer 1 CALCULATION OF THE EBIT AND NET PROFITAmount Millions ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
What are Computrons net operating profit after taxes (NOPAT) and free cash flow (FCF)? Donna Jamison, a graduate of The University of Tennessee with four years of banking experience, was recently...
-
What is Computrons net operating profit after taxes (NOPAT)? What are operating current assets? What are operating current liabilities? How much net operating working capital and total net operating...
-
Geely, a motor company, plans to raise SKR 10 million (or equivalent in other currencies) to acquire Volvo, a Swedish firm. Therefore, Geely decides to issue foreign bonds and has the following two...
-
In Exercises show that is strictly monotonic on the given interval and therefore has an inverse function on that interval. f(x) = cos x, [0, ]
-
A random sample of 12 college baseball players participated in a special weight-training program in an attempt to improve their batting averages. The program lasted for 20 weeks immediately prior to...
-
Four-wheel drive automobiles are popular in regions where winter road conditions are often slippery due to snow and ice. A four-wheel drive vehicle with antilock brakes uses a sensor to keep each...
-
Look at the visualization titled "Changing Face of America" (the second visualization on the page). This is a new kind of visualization in which the total for each year is scaled to $100 %$, and the...
-
Why is the statement of cash flows a useful document?
-
You have already learned that when preparing financial statements, management makes assertions about each account and the relate disclosures in the notes. Auditors then gather sufficient appropriate...
-
In cell C11, construct a formula to calculate the annual projected street maintenance costs for the year 2025 after the projected increase of 5% is applied. Use absolute cell references as necessary....
-
Jonken co is a private company based in Kitwe. The company is considering investing in a project that will be producing belts to be sold to the mining companies. This will involve the company buying...
-
Look at the year-on-year CPI inflation rates from 2011-2023 for the US and Australia, what do you find? CoursHeroTranscribedText Australia USA -2 Jan-11 Aug-11 Mar-12 Oct-12 May-13 Dec-13 Jul-14...
-
The goal is to use the Capital Asset Pricing Model to calculate the cost of equity for Amazon.com on January 2, 2003, and on January 2, 2020. Instructions 1) Four sheets of data are available: a.the...
-
Utility functions for auto and public transit between two towns are: UAUTO= -0.160 -0.011 (TT)-0.024. (C) -0.008 (WT) UPT = -0.224 -0.011 (TT) -0.024. (C) -0.013 (WT) Mode COST (C) Auto 20.5 PT 3.75...
-
A 2 3 kg plastic cube is placed on top of a wooden cube floating in water. The density of the wooden cube is 5 1 8 kg / m 3 and the density of water is 1 0 0 0 kg / m 3 . What is the volume of the...
-
2. a. Write a C program to calculate and display the coordinates of the midpoint of the line segment connecting the points (3, 4) and (10, 12). Use the fact that the coordinates of the midpoint...
-
Complete the missing general journal entries below based on the following balance day adjustments as at 30 June 2023. . Equipment purchased on 01/07/2022 for $5,000 is yet to be depreciated. The life...
-
In the circuit shown in Figure 4, a battery supplies a constant voltage of 40 V, the inductance is 2 H, the resistance is 10, and l(0) = 0. (a) Find l(t). (b) Find the current after 0.1s.
-
Assume the average age of an MBA student is 31.6 years old with a standard deviation of 2.8 years. a. Determine the coefficient of variation. b. Calculate the z-score for an MBA student who is 28...
-
A local church has a congregation composed of 362 members. The churchs administrators would like to find out how the congregation would react if the church moved its 11: 00 a.m. service to 10: 00...
-
The U. S. stock market experienced an economic recovery during 2011 and 2012 after a major recession. The data in the Excel file S& P 500.xlsx show the end of month values for the S& P 500 Index...
-
Discuss each of the theoretical change models introduced in this chapter. How can we use them when planning an HRIS implementation to increase our chances of success?
-
The Grant Corporation is a financial services firm based in Chicago, Illinois. Its revenue exceeded \($1\) billion last year, producing a net income of \($530\) million. It has just over 1,000...
-
Analyze the main reasons for HRIS implementation failure. How can we prevent these from affecting us?
Study smarter with the SolutionInn App