NPV $40,000 $20,000 $10,000 SO $50 $100 Cost of Goods Sold $150 The graph above shows the break-even analysis for the cost of making a certain good. Based on this chart, which of the following is False? O The project should not be undertaken if the predicted cost of goods sold is more than $110 O If the good costs are $100 to make, the net present value (NPV) of the project will be approximately $5,000 The net present value (NPV) of the project decreases with increased cost of goods sold The net present value (NPV) of the project will be positive if the cost of goods sold is more than $110

NPV $40,000 $20,000 $10,000 SO $50 $100 Cost of Goods Sold $150 The graph above shows the break-even analysis for the cost of making a certain good. Based on this chart, which of the following is False? O The project should not be undertaken if the predicted cost of goods sold is more than $110 O If the good costs are $100 to make, the net present value (NPV) of the project will be approximately $5,000 The net present value (NPV) of the project decreases with increased cost of goods sold The net present value (NPV) of the project will be positive if the cost of goods sold is more than $110

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A company sells two products in the ratio 2:1 A B £ £ Selling price 2030 Variable costs 10 15 Given that fixed costs are £500,000, how many products in total will have to be sold to break even? Select one: O a. 50,000 O b. 35,000 O c. 42,500 O d. 45,000 Questio Not yet Marked Flag
X The figure below shows graphs of the fixed cost function, total cost function and the total revenue function for a certain commodity. 20 8000+ 7000 6000 5000 4000 Dollars ($) 3000- 2000 1000 -10 -1000+ 10 20 30 (a) What is the break-even point? (295,7650) (b) What are the fixed costs? $ Percent of capacity= 40 Units Next Question 50 TR If the selling price per unit is $90, and the variable cost per unit is $20: TC FC 60 70 80 90 100 (c) If the maximum production capacity of the commodity is 110, express the break- even units as a percent of capacity? enter the answer in the form (x,y) e.g. % (round to two decimal places if necessary)
Current Attempt in Progress Assume a sales price per unit of $25, variable cost per unit $21, and total fixed costs of $154560. What is the breakeven point in dollars? $241500 $966000 $483000 $618240
Question 2: Muscat Company has the following information. OMR Fixed Cost 8750 Break even Sales 16000 a) PV Ratio b) Profit when sales are 20000 c) New BE point if selling price is reduced by %25 Question 3: Sohar Company's financial information is given in the table below. Year Sales (OMR) Fixed Costs Variable Costs 2019 405000 90000 225000 2020 450000 120000 240000 Calculate: a) P/V ratio, b) В.Е.Р. c) Sales required to earn a profit of OMR 40000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 200000.
Question 2: Muscat Company has the following information. OMR Fixed Cost 8750 Break even Sales 16000 a) PV Ratio b) Profit when sales are 20000 c) New BE point if selling price is reduced by %25
Question 2: Muscat Company has the following information. OMR Fixed Cost 8750 Break even Sales 16000 a) PV Ratio b) Profit when sales are 20000 New BE point if selling price is reduced by %25
7 If you know that: Fixed cost = AED 3000 Variable cost= AED 500 Quantity= 100 units price= AED 10 What is the amount of: 1- Total costs? 2- Average total costs? 3- Total revenue? What are possible three market conditions in which the invisible hand is not working and there is a dead weight loss (lost economic surplus) in the market?
Consider the following two production choices for Matson Engineering: A В FC 100,000 150,000 AOC 10,000 12,000 SV 8,000 14,000 L/hr $30 $25 # of Реople Output/hr 6. 10 Т уears 8 If Matson's MARR is 10% what is the breakeven quantity between these two machines? Group of answer choices А. 382 В. 604 С. 411 D. 321
2. You are given the following information: Selling price per unit Variable cost OMR 20 OMR 12 Total fixed cost OMR 96000 (i) Break-even units and value. (ii) Profit and margin of safety when sales would be OMR 400000 Engih nted States
$106,250 $340,000 O $160,000 O If fixed costs related to a product increase, while variable costs and sales ?price remain constant, what will happen to the breakeven point will increaseO will decrease O will not change O cannot be calculated. O will decrease to zero Eagle Sales has developed the following budgeted income statement. The company is experimenting with new engineering techniques and believes it can reduce variable cost to $4 per unit and significantly improve the product. The innovations would increase fixed cost to $10,000 but the company expects to be able to increase sales to 3,000 units with an hp
ble cost per unit 1.3 ginal income per REQUIRED Use the information provided below to calculate the following independently: 1.3.1 Net profit 1.3.3 Marginal income per unit that will enable the project to break even 1.3.2 Break-even quantity if the selling price increases to R130 per unit INFORMATION Caprice Limited plans to start Project Star and the following are the forecasts for 2024 Sales Direct materials cost per unit Direct labour cost per unit Variable selling costs Manufacturing overhead costs (all fixed) Fixed selling and administrative costs 50 000 units at R120 per unit R36 R24 10% of sales R841 000 R1 040 000 (2 marks) (2 marks) (4 marks)
Project A Time 0 - 10,000 Time 1 5,000 Time 2 Time 3 4,000 3,000 Project B - 10,000 4,000 3,000 10,000 If WiseGuy Inc. is choosing one of the above mutually exclusive projects (Project A or Project B), given a discount rate of 8%, which should the company choose? OA. Project A OB. Project B OC. Neither project-both have negative NPV. OD. Both projects-both have positive NPV.

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