Solution:
Given information:
The fixed operating costs are$430,000.
The variable costs per unit are $2.95.
The selling price of the product is $4.50.
Calculation of the break-even point:
The formula to calculate the break-even point is:
Break-even point = Fixed costs / Selling price per unit -Variable costs per unit
= 430,000 / 4.50 - 2.95
= 430,000 / 1.55 = 277,419
Substitute $430,000 for the fixed costs, $2
Answer:
The answer will be below
Explanation:
a. Income from operations=$322,990-$143,460-$49,300=$130,230
b. Net Income=$322,990-$143,460-$49,300+$27,900-$5,590-$12,730=$139,810
c. Comprehensive Income=$9,390
d. Retained Earnings=$139,810-$4,750=$135,060
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Answer:
Explanation:
a.Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
=150,000/1.12+210,000/1.12^2+360,000/1.12^3
=557580.18
NPV=Present value of inflows-Present value of outflows
=557580.18-460,000
=$97580.18(Approx)=Value of factory
b.Hence since net present value is positive;factory is a good investment
(Yes)