Solution-What is the financial break-even level for the

What is the financial break-even level for the project

Assignment Help Financial Accounting

Reference no: EM132841540

Question - Financial Break-Even Analysis - You are considering investing in a company that cultivates abalone to sell to local restaurants. Use the following information:

Sales price per abalone $43.00

Variable costs per abalone $10.45

Fixed costs per year $435,000.00

Depreciation per year $130,000.00

Tax rate 219

The discount rate for the company is 15 percent, the initial investment in equipment is $910,000, and the project's economic life is seven years. Assume the equipment is depreciated on a straight-line basis over the project's life and has no salvage value.

Required -

a. What is the accounting break-even level for the project?

b. What is the financial break-even level for the project?

Reference no: EM132841540

Questions Cloud

Prepare the adjusting journal entries required at April : Collected $600,000 cash from sales of season tickets for the team's 20 home games. Prepare the adjusting journal entries required at April

What ways did the goals of the civil rights movement : In what ways did the goals of the civil rights movement of the 1950s and 1960s manifest themselves in the identity politics of the 1970s?

Develop an organizational chart listing the key leaders : Hoping for some advise on a writing assignment. We are asked to identify and develop an organizational chart listing the key leaders

What common goals did american indians in quests : What common goals did American Indians, gay and lesbian citizens, and women share in their quests for equal rights? How did their agendas differ?

What is the financial break-even level for the project : The discount rate for the company is 15 percent, the initial investment in equipment is $910,000, What is the financial break-even level for the project

Provide the conflict resolution steps and strategies : ??Explain the team's problems in terms of their interactions evidenced in the scenario. Then provide the conflict resolution steps and strategies to address

Describe the changing role of the federal government : Describe the changing role of the federal government in the 1960s. What new roles and responsibilities did the government assume?

Which cultures and customs are you most familiar with : Do you think there is a danger in stereotyping when discussing cultural norms? Explain and provide examples. Which cultures and customs are you most familiar.

How did some americans turn their wartime experiences : What was the reason for the breakdown in friendly relations between the United States and the Soviet Union after World War II?

User Account

All Pages

What is the financial break-even level for the project

Reference no: EM132841540

Reference no: EM132841540

Questions Cloud

Reviews

Write a Review

Financial Accounting Questions & Answers

Calculation budgeted direct raw material purchased for the

What the interest expense to be recognized by abc inc

How and whether each of the events or transactions should

Make a comparison of the following items and note

Create a new tab titled personnel expenses

What kind of bet is the investor making

Question bos gym is a total fitness center owner bo

Why is ex-dividend date and ex-dividend price

What is the net effect of the foregoing errors

What is the amount of the firm net fixed assets

Determining the annual financing cost of borrowingpyramid

Discuss factors that might counteract bias in the auditing

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT