<span>Answer:
At what unit sales level would WCC have the same EPS, assuming it undertakes the investment and finances it with debt or with stock? {Hint: V = variable cost per unit = $8,160,000/440,000, and EPS = [(PQ - VQ - F - I)(1 - T)]/N. Set EPSStock = EPSDebt and solve for Q.} Round your answer to the nearest whole.
units
At what unit sales level would EPS = 0 under the three production/financing setups - that is, under the old plan, the new plan with debt financing, and the new plan with stock financing? (Hint: Note that VOld = $10,200,000/440,000, and use the hints for Part b, setting the EPS equation equal to zero.) Round your answers to the nearest whole.
Old plan units
New plan with debt financing units
New plan with stock financing units
On the basis of the analysis in parts a through c, and given that operating leverage is lower under the new setup, which plan is the riskiest, which has the highest expected EPS, and which would you recommend? Assume here that there is a fairly high probability of sales falling as low as 250,000 units, and determine EPSDebt and EPSStock at that sales level to help assess the riskiness of the two financing plans. Round your answers to two decimal places.
EPSDebt = $
EPSStock = $</span>
Answer: B2B transactions involve transactions where the buyers and sellers are both businesses, while B2C involves transactions between businesses and consumers.
Explanation:
Business-to-business transactions are simply regarded as the transactions that takes place between one business and another business. This can occur when the business is looking for inputs for its production process.
Business-to-consumer transactions simply regarded as the transactions that takes place between a business and the customers. This occurs when a business sells its goods or services to the customers directly without the goods passing through the middlemen.
a. 50 cents
Contribution margin per unit is price per unit- variable cost per unit
1.75 - ($50,000/40,000 units)
1.75 - 1.25 = $ .50
b. $8750
Margin of safety is the expected sales - break even sales
(45,000 units * $1.75 per unit) - (40,000 *1.75)
78,750 - 70,000 = $8750
Answer:
(a), (e), (f)
Explanation:
A)Fracture of workpart is less likely
E) Lower deformation forces are required F). More significant shape changes are possible
Answer:
D) None of the above is included in Japanese GDP.
Explanation:
A country's GDP includes the value of all the finished and legal goods and services produced in an economy during one year.
GDP = consumption + investment + government spending + net exports
- Vegetables and fruits grown and consumed by an individual are not included in the GDP, unless they sell them to someone else.
- Illegal goods ans services are not included in the GDP.
- Imports, foreign products sold in a domestic market, lower the GDP since they lower net exports.
