Apply formula to compute, Using the information provided

Apply formula to compute

Assignment Help Accounting Basics

Reference no: EM131016768

a) Using the information provided and results obtained above, apply formula to compute

(i) Accounting Break-even

(ii) Cash break-even (ignoring taxes) quantity of sales.

Show Work and properly "label" results.

b) Bonus: Using the information provided and results obtained AND Excel's "Goal Seek" function, compute

(i) Cash break-even (NOT ignoring taxes) and

(ii) Financial break-even quantity of sales.

Record the results below. Remember to properly "label" them.

GIVEN INFORMATION
According to best estimates:
Unit sales	45,000
Price per unit	140
Variable cost per unit	125
Fixed costs per year	186,000
Fixed Assets at the beginning	640,000
Changes in NWC	0
Project life (years)	2
Depreciation -years,method	2
Required return	12%
Income tax rate	40%

Reference no: EM131016768

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