What is the financial break-even quantity

Assignment Help Accounting Basics
Reference no: EM133019177

Question - XYZ Inc. has a project with an accounting break-even quantity of 28,700 units, a life of 4 years. The fixed production costs are $178,000 and variable costs are $18.40 per unit. The project needs an investment of $500,000 in equipment which will be depreciated straight-line to zero over the life of the project. The equipment will be worthless in 4 years. No working capital investment will be required for the project. If the required return is 14 percent, and there are no taxes, what is the financial break-even quantity?

Reference no: EM133019177

Questions Cloud

How much is the share of B in the profit : The partnership reported profit of 60,000 for the year, net of salaries, bonus and interest. How much is the share of B in the profit
What is the answer in selecting a franchise worksheet : What is the answer in selecting a franchise worksheet?
Calculate the maturity value of the note : A $20,000 promissory note is issued on June 12 for a five-month term carrying an annual interest rate of 5.5%. Calculate the maturity value of the note
What is the market price of this bond : The yield to maturity is 6.71% and the maturity date is 7 years from today. What is the market price of this bond if the face value is $1,000
What is the financial break-even quantity : No working capital investment will required for the project. If required return is 14 percent, and there are no taxes, what is financial break-even quantity
What was dane recognized gain : Cooper exchanged a commercial building and land with a basis of $200,000 and a fair market value of $400,000. What was Dane's recognized gain
What amount of income from this loan should Thamuz report : On December 1, 2020, Thamuz Co. Gave Harith Co. a P400,000, 11% loan. What amount of income from this loan should Thamuz report
Describe the objectives of an independent audit : Feller, having some bookkeeping experience, has personally prepared the company's financial statements. Describe the objectives of an independent audit
What is the amount of Louise tax refund : A non-refundable credit: $750 of $500. Lois has the following tax credits and payments available: What is the amount of Louise tax refund

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd