Reference no: EM133179749
Questions -
(a) A firm has fixed operating costs of RM525,000. The sales price per unit is RM35 and its variable costs per unit is RM22.50. Calculate the firm's operating breakeven point in units.
(b) Carol's Dolls has fixed operating costs of RM25,000. Its sale price is RM55 per doll, and its variable operating cost is RM30 per doll. It sells 3,000 dolls per month. What is the firm's earnings before interest and taxes (EBIT)?
(c) A firm has fixed operating costs of RM10,000, the sale price per unit of its product is RM25, and its variable cost per unit is RM15. Calculate the firm's operating breakeven point in units and in value (RM).
(d) Briefly discuss the difference between sunk costs and opportunity costs?
(e) Lanskap Bhd has spent RM2,200 evaluating a new service area for expanding its business territory. The expansion will require the purchase of a new truck for RM35,000 and fitting the truck with a flatbed that will cost RM6,500 to install. The company would realize RM8,250 in after-tax proceeds from the sale of an old truck. If Lanskap's working capital is unaffected by this project, what is the initial cash flow for this project?
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