Machine after considering the sale of the old machine

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Reference no: EM132037125

1. Dolby Electronics assembles and sells home theatre installations at an average price of $8K/unit. Their cost is $5K/unit, and their overhead is $12K/month. What is their breakeven monthly sales in # of units?

2. An asset fitting into the 10-year MACRS category was purchased 2 years ago for $100,000. The book value of this asset is now (Do not round intermediate calculations.)

$86,200

$76,600

$72,000

$66,800

3. Firm X is considering the replacement of an old machine with one that has a purchase price of $80,000. The current market value of the old machine is $21,000 but the book value is $38,000. The firm's tax rate for ordinary income is 39%. What is the net cash outflow for the new machine after considering the sale of the old machine?

$52,370

$48,970

$64,720

$58,240

Reference no: EM132037125

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