Finance Homework Help – savvyessaywriters.net | Savvy Essay Writers
Finance Homework Help – savvyessaywriters.net | Savvy Essay Writers
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12-2 Breakeven comparisons—Algebraic Given the price and cost data shown in the accompanying table for each of the three firms, F, G, and H, answer the following questions.FirmFGHSale price per unit$ 18.00$ 21.00$ 30.00Variable operating cost per unit6.7513.5012.00Fixed operating cost45,00030,00090,000What is the operating breakeven point in units for each firm?How would you rank these firms in terms of their risk?12-6 Breakeven point—Changing costs/revenues JWG Company publishes Creative Crosswords. Last year the book of puzzles sold for $10 with variable operating cost per book of $8 and fixed operating costs of $40,000. How many books must JWG sell this year to achieve the breakeven point for the stated operating costs, given the following different circumstances?All figures remain the same as for last year.Fixed operating costs increase to $44,000; all other figures remain the same.The selling price increases to $10.50; all costs remain the same as for last year.Variable operating cost per book increases to $8.50; all other figures remain the same.What conclusions about the operating breakeven point can be drawn from your answers?12-8 EBIT sensitivity Stewart Industries sells its finished product for $9 per unit. Its fixed operating costs are $20,000, and the variable operating cost per unit is $5.Calculate the firm’s earnings before interest and taxes (EBIT) for sales of 10,000 units.Calculate the firm’s EBIT for sales of 8,000 and 12,000 units, respectively.Calculate the percentage changes in sales (from the 10,000-unit base level) and associated percentage changes in EBIT for the shifts in sales indicated in part b.On the basis of your findings in part c, comment on the sensitivity of changes in EBIT in response to changes in sales.P-4 Future values For each of the cases shown in the following table, calculate the future value of the single cash flow deposited today that will be available at the end of the deposit period if the interest is compounded annually at the rate specified over the given period.CaseSingle cash flowInterest rateDeposit period (years)A$ 2005%20B4,50087C10,000910D25,0001012E37,000115F40,000129P-11 Present values For each of the cases shown in the following table, calculate the present value of the cash flow, discounting at the rate given and assuming that the cash flow is received at the end of the period noted.CaseSingle cash flowDiscount rateEnd of period (years)A$ 7,00012%4B28,000820C10,0001412D150,000116E45,000208