Sales of a product was estimated at 80,000 pieces annually with a rate of 6 pu. Its variable mfg. costs are 2.50 pu with S&D and general expenses related to product is 59,000 on annual basis. Its fixed manufacturing costs (excluding depreciation) at 45,000 on annual basis. Investment made is 350,000 with related to various molds & equipment. The equipment have a 3 year life with ending salvage value of 20,000.Tax at 40%. Calculate the estimated increase in annual level of net income from the planned manufacture and sale of the product.
Sales of a product was estimated at 80,000 pieces annually with a rate of 6 pu. Its variable mfg. costs are 2.50 pu with S&D and general expenses related to product is 59,000 on annual basis. Its fixed manufacturing costs (excluding depreciation) at 45,000 on annual basis. Investment made is 350,000 with related to various molds & equipment. The equipment have a 3 year life with ending salvage value of 20,000.Tax at 40%. Calculate the estimated increase in annual level of net income from the planned manufacture and sale of the product.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Sales of a product was estimated at 80,000 pieces annually with a rate of 6 pu. Its variable mfg. costs are 2.50 pu with S&D and general expenses related to product is 59,000 on annual basis. Its fixed
Investment made is 350,000 with related to various molds & equipment. The equipment have a 3 year life with ending salvage value of 20,000.Tax at 40%.
Calculate the estimated increase in annual level of net income from the planned manufacture and sale of the product.
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