Welker Products sells small kitchen gadgets for $15 each. The gadgets have a variable cost of $4 per unit, and Welker Products' fixed operating costs are $220,000 per year. Welker Products' capital structure includes 55% debt and 45% equity. Annual interest expense is $25,000, and the corporate tax rate is 35%. Calculate the break-even point in units. If Welker Products sells 25,000 units, calculate the firm's EBIT and net income. If sales increase ten percent from 25,000 units to 30,000 units, estimate the firm's expected EBIT and net income.

Posters.com is a small Internet retailer of high-quality posters. The company has $810,000 in operating assets and fixed expenses of $162,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $4,600,000 per year. The company’s contribution margin ratio is 10%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 10 cents.    Required:   Complete the following table showing the relation between sales and return on investment (ROI).   What happens to the company’s return on investment (ROI) as sales increase? req 1  Complete the following table showing the relation between sales and return on investment (ROI). (Round your percentage answers to 2 decimal places.)         Sales Net Operating Income Average Operating Assets ROI $4,100,000 $248,000 $810,000   % $4,200,000   $810,000   % $4,300,000   $810,000   % $4,400,000…

Bonaventure Manufacturing expects to earn P210,000 next year after taxes. Sales will be P4million. The firm manufactures a combined bookshelf and desk unit used extensively in university dormitories. These units sell for P200 each and a have variable cost per unit of P150. Bonaventure experiences a 30% tax rate.a. Determine the firm’s fixed costs that are expected next year. (4 marks)b. Calculate the firm’s break-even point in both units and pulas.

Callie Corporation’s products sell for $180 each. The variable cost of each product is $135, and fixed operating costs are $371,250. Callie pays $61,875 interest on its outstanding debt each year, and its marginal tax rate is 40 percent. If Callie expects to sell 11,000 units, what is its degree of operating leverage (DOL), its degree of financial leverage (DFL), and its degree of total leverage (DTL)? The firm has no preferred stock.