Question: Use the information provided in the table below to answer the given questions Selling Price Variable Cost Fixed Cost Expected sales a) b) c)

Use the information provided in the table below to answer the given questions Selling Price Variable Cost Fixed Cost Expected sales a) b) c) R25 15% of selling price R120 000 25000 units. Calculate the break-even point in units and the break-even value in Rand Determine the margin of safety in units! What do you understand by the term break-even? Mandela Pty Ltd, a furniture manufacturer, has been offered an opportunity to accept a project that has the following mixed stream of cash flows over the next 5 years: Year Cash flow 1 6000 2 8800 3 6000 6000 If the company must earn at least 12% on this project. What is the present value of this project? 5 3000 Assume a company has cost of equity of 12.50% and after-tax cost of debt of 7.22%. What is the weighted-average cost of capital (WACC) if the target debt-equity ratio is 30%?

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Lets address each question one by one a Calculate the breakeven points in units and the breakeven value in Rand To calculate the breakeven point we need to determine the number of units the company ne... View full answer

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