
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:Additional Questions:
1. A company is considering a project with a cash break-even point of 14,500 units. The
selling price is $14 a unit and the variable cost per unit is $8. What is the projected
amount of fixed costs?
2. At a production level of 6,500 units, a project has total costs of $95,000. The variable
cost per unit is $10.80.
a) What is the amount of the total fixed costs?
b) If the production level is increased to 7,000 units, without any change in the total fixed
assets, what is the Total Costs?
3. Your company is reviewing a project with labor cost of $11.60 per unit, raw materials
cost of $24.58 a unit, and fixed costs of $12,000 a month. Sales are projected at 10,000
units over the four-month life of the project. What are the total variable costs and total
cost of the project?
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- p1arrow_forwardWhat is the break even point in dollars if annual fixed costs are 114,000 and CTO is 0.65?arrow_forwardHH Aaron Company is planning to sell Product X for $80 per unit. Variable costs are $50 a unit and fixed costs are $ 150,000. What must total sales be in order to break even? 800,000 500,000 400,000 900,000arrow_forward
- Please show the solution on how to get the answer.arrow_forwardHanisch Corporation would like to use target costing for a new product it is considering introducing. At a selling price of $32 per unit, management projects sales of 30,000 units. The new product would require an investment of $300,000. The desired return on investment is 16%. The target cost per unit is closest to: (Do not round intermediate calculations.) Question 10 options: $40.00 $30.40 $3.20 $32.00arrow_forwardE3 Doni is a self-manufactured, he wants to calculate how much the price for their new product if the targeted initial margin is 65%; given all-in production cost is $15, transport & logistic cost is 5.8% from the production cost, and revenue sharing cost would be 12% from landing cost (production + transport + logistic).arrow_forward
- B. Consider the following: Total variable costs $200,000 Total fixed costs $150,000 Annual volume of units 500 Average invested capital $400,000 Target Return on investment 20.0% To the nearest tenth, what is the markup percentage required to earn the target return on investments using the cost-plus formula based on total costs?arrow_forwardIf fixed costs are $1,226,000, the unit selling price is $220, and the unit variable costs are $100, what is the break-even sales (units) if fixed costs are increased by $30,100?arrow_forwardIf breakeven point is 1,100 units, each unit sells for $32, and fixed costs are $20,000, then on a graph the: > Total cost line will be zero at zero units sold > Total revenue line and the total cost line will intersect at $35,200 of revenue > Revenue line will start at $20,000 > Total revenue line and the total cost line will intersect at $55,200 of revenuearrow_forward
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