What is the financial breakeven point

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1. Given the financial statements below for Dragonfly Enterprises, what is the external financing need for a pro forma increase in sales of 23% if the firm is operating at 92% capacity? Enter your answer as the nearest whole (e.g., 123), but do not include the $ sign.

2. Miller Tools is considering a new project that requires an initial investment of $81,300 for fixed assets, which will be depreciated straight-line to zero over the project's 4-year life. The project is expected to have fixed costs of $37,600 a year, and a contribution margin of $18.40. The tax rate is 34% and the discount rate is 10.5%. What is the financial breakeven point?

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5,215 units

6,112 units

3,610 units

2,483 units

Reference no: EM131968594

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