Problem 5-26 (Algo) Operating leverage and ratios [LO5-6] Ms. Gold is in the widget business. She currently sells 1.7 million widgets a year at $7 each. Her variable cost to produce the widgets is $5 per unit, and she has $1,680,000 in fixed costs. Her sales-to-assets ratio is seven times, and 40 percent of her assets are financed with 9 percent debt, with the balance financed by common stock at $10 par value per share. The tax rate is 40 percent. Her sister-in-law, Ms. Silverman, says Ms. Gold is doing it all wrong. By reducing her price to $6.00 a widget, she could increase her volume of units sold by 40 percent. Fixed costs would remain constant, and variable costs would remain $5 per unit. Her sales-to- assets ratio would be 8.0 times. Furthermore, she could increase her debt-to-assets ratio to 50 percent, with the balance in common stock. It is assumed that the interest rate would go up by 1 percent and the price of stock would remain constant. a. Compute earnings per share under the Gold plan. Note: Round your answer to 2 decimal places. Earnings per share

6.7          Project Evaluation Your firm is contemplating the purchase of a new $575,000 com-puter based order entry system. The system will be depreciated straight-line to zero over its 5-year life. It will be worth $60,000 at the end of that time. You will save $176,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $80,000 (this is a one-time reduction). If the tax rate is 23 percent, what is the IRR for this project?

6. . At a furniture factory, the average selling price of a table is $18, the average variable expense per table is $ 9, and the average fixed expense per month is $ 12,000. On average 2, 000 tables are sold at each month. If sales increase by 20%, by how much should net operating income increase? A. $ 7,200 B. $ 10,000 C. $8,000 D. $3,160

P15-15  Lockbox system Eagle Industries believes that a lockbox system can shorten its accounts receivable collection period by 3 days. Credit sales are $3,240,000 per year, billed on a continuous basis. The firm has other equally risky investments that earn a return of 15%. The cost of the lockbox system is $9,000 per year. (Note: Assume a 365-day year.)  What amount of cash will be made available for other uses under the lockbox system?

24) Can i get help with this question please