1. If you want the formulas and any calculations, select the corresponding cell and press F2(Function Key on key board), It will show all calculations and formulas Automatically Rocky Mountain Metals Company manufactures an assortment of wood burning stoves.

The average selling price for the units is $500. The associated variable cost is $350 per unit. Fixed cost for the firm average $180,000 annually.          

What is the break-even point in units for the company?                

2. If you want the formulas and any calculations, select the corresponding cell and press F2(Function Key on key board), It will show all calculations and formulas Automatically

(Dividend policies)           

Final earnings estimates for Chilean Health Spa & Fitness Center have been for the CFO of the company and are shown in the following table. The firm has 7,500,000 shares of common stock outstanding. As assistant to the CFO, you are asked to determine the yearly dividend per share to be paid on the following possible policies:

A stable dollar dividend targeted at 40 percent of earnings over a 5-year period.               

A small, regular dividend of $0.60 per share plus a year-end extra when the profits in any year exceed $20,000,000. The year-end extra dividend will equal 50 percent of profits exceeding $20,000,000.        

A constant dividend payout ratio of 40 percent. 

YEAR	PROFITS AFTER TAXES
1	$18,000,000.00
2	$21,000,000.00
3	$19,000,000.00
4	$23,000,000.00
5	$25,000,000.00
	$106,000,000.00

A stable dollar dividend targeted at 40 percent of earnings over a 5-year period.