WHAT IS THE BREAK-EVEN POINT IN UNITS FOR POSEIDON SWIM?

21 May WHAT IS THE BREAK-EVEN POINT IN UNITS FOR POSEIDON SWIM?

The Poseidon Swim Company produces swim trunks. The average
selling price for one of their swim trunks is $34.89. The variable cost per
unit is $22.35, Poseidon Swim has average fixed costs per year of $47,916.

What is the break-even point in units for Poseidon Swim?

Round the answer to the whole number.

Question 2 1
/ 1 point

The Poseidon Swim Company produces swim trunks. The average
selling price for one of their swim trunks is $40.00. The variable cost per
unit is $18.59, Poseidon Swim has average fixed costs per year of $42,321.

What is the break-even point in dollar sales?

Question 3 1
/ 1 point

The Poseidon Swim Company produces swim trunks. The average
selling price for one of their swim trunks is $64.34. The variable cost per
unit is $27.98, Poseidon Swim has average fixed costs per year of $23,956.

What would be the operating profit or loss associated with
the production and sale of 422 swim trunks?

Question 4 1
/ 1 point

The Poseidon Swim Company produces swim trunks. The average
selling price for one of their swim trunks is $68.78. The variable cost per
unit is $25.73, Poseidon Swim has average fixed costs per year of $9,256.

Determine the degree of operating leverage for the level of
production and sales 427 swim trunks.

Question 5 1
/ 1 point

The Poseidon Swim Company produces swim trunks. The average
selling price for one of their swim trunks is $63.58. The variable cost per
unit is $24.83, Poseidon Swim has average fixed costs per year of $8,339.

Assume that current
level of sales is 416 units. What will be the resulting percentage change in
EBIT if they expect units sold to changes by 3.7 percent? (You should calculate
the degree of operating leverage first).

(Write the percentage sign in the “units” box).

Round the answer to two decimal places.

Homework 7B

Question 1 1
/ 1 point

Irresistible Chips is reviewing its financial condition. The
firm generated an operating profit of $4,602,260. The firm’s interest expense
was $2,021,200.

What is the firm’s
degree of financial leverage? Round the answer to two decimals

Question 2 1
/ 1 point

Irresistible Chips is reviewing its financial condition. The
firm generated an operating profit of $5,699,130. The firm’s interest expense
was $2,593,350.

What will be the resulting percentage change in earnings per
share if they expect operating profit to change 2.6 percent?

(You should calculate the degree of financial leverage
first).

(Write the percentage sign in the “units” box).

Round the answer to two decimals

Question 3 1
/ 1 point

Use the following information about Rat Race Home Security,
Inc. to answer the questions:

Average selling price per unit $346.

Variable cost per unit $192

Units sold 352

Fixed costs $6,393

Interest expense $13,881

Based on the data
above, what is the degree of financial leverage of Rat Race Home Security,
Inc.?

Question 4 1
/ 1 point

Use the following information about Rat Race Home Security,
Inc. to answer the questions:

Average selling price per unit $336.

Variable cost per unit $200

Units sold 423

Fixed costs $9,477

Interest expense 18,461

Based on the data
above, what will be the resulting percentage change in earnings per share of
Rat Race Home Security, Inc. if they expect operating profit to change -1.5
percent?

(You should calculate the degree of financial leverage
first).

(Write the percentage sign in the “units” box).

Round the answer to two decimals

Homework 7C

Question 1 1
/ 1 point

La Cucaracha Pest Control, Inc. is reviewing its financial
condition. The firm’s operating leverage is 2.84. The firm’s financial leverage
was of 2.55. What is the firm’s degree of combined (total) leverage of La
Cucaracha Pest Control, Inc. ?

Question 2 1
/ 1 point

Haunted Forest, Inc.is selling fog machines.

Use the following information about Haunted Forest, Inc. to
answer the following questions.

Average selling price per unit $316.

Variable cost per unit $214

Units sold 366

Fixed costs $17,113

Interest expense $4,993

Based on the data
above, what is the degree of total (combined) leverage of Haunted Forest, Inc.?

Round the answer to two decimals

Question 3 1
/ 1 point

Haunted Forest, Inc.is selling fog machines.

Use the following information about Haunted Forest, Inc. to
answer the following questions.

Average selling price per unit $336.

Variable cost per unit $213

Units sold 307

Fixed costs $15,366

Interest expense $3,708

Based on the data
above, what will be the resulting percentage change in earnings per share if
they expect units produced and sold to change -4.8 percent?

(You should calculate the degree of total (combined)
leverage first).

(Write the percentage sign in the “units” box).

Round the answer to two decimals

Homework 7D

Question 1 1
/ 1 point

Leaf It To Us Corporation is considering an expansion
project. The necessary equipment could be purchased for $26,278,300 and shipping
and installation costs are another $24,461. The project will also require an
initial $123,809 investment in net working capital. What is the project’s
initial investment outlay?

Round the answer to the whole $.

Question 2 1
/ 1 point

El Dorado Storage has the following projections for Year 1
of a capital budgeting project.

Sales $290,454