Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question: Boehm Corporation produces satellite earth stations that sell for $150,000 each. The firm's fixed costs are $1.5 million, 20 earth stations are produced and sold each year. Profits are $400,000 and the firm's assets (all equity financed) are $5million. Due to technological advances in the industry the firm estimates that it can change its production process by adding $10 million to assets and $500,000 to fixed operating costs. This change will reduce variable costs per unit by $5,000 and increase output by 30 units. However, the sales price on all units must be lowered to $140,000 to permit sales of the additional units. Boehm Corporation has tax carryforwards that render its tax rate zero, its cost of equity is 18% and it has no debt in its capital structure. Thus, the company's profit is equal to earnings before interest and taxes (EBIT)
1.Determine the company's variable cost per unit and break-even quantity under the initial plan.
2.Determine the company's variable cost per unit and break-even quantity under the proposed plan.
3.Would the new proposed plan expose the firm to more or less business risk than the initial plan.
Randy Campbell is admitted to the partnership by contributing $56,840 cash for a 28% interest. Prepare a statement of partnership equity for the year ended
Deason Distributors has decided to discontinue manufacturing its Venus model blender. What is the Incremental effect per unit
Create the 'status quo'. Fischer machine comes up with the following offer 'hey, we can RENT you an extra sewing machine for $4,000
Calculate the direct materials price and quantity variances and indicate whether the variances are favorable or unfavorable
Compute What is the accounts receivable balance at the end of July? The ending finished goods inventory equals 20% of the following month's unit sales.
What is the minimum annual interest rate needed for the annuity? You are considering paying $250,000 for an annuity today and you know you need a yearly.
Alden Co.'s monthly sales and cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs.
Standard hours allowed for actual production: 8,000. Determine the labour rate and efficiency variances for April
Write a brief memo to Todd explaining the allowance method and how this information is reported in the financial statements
What should be captured in the cash flow statement? want to make sure accounting for the sale correctly and not overstating numbers.
Last year the division had total sales of $21,060,000, net operating income of $1,892,760, What is the division turnover
What is the total overhead cost assigned to the order for heavy-duty trailer axles?Durban Metal Products, Ltd., of the Republic of South Africa
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd