1 Calloway Cab Company determines its break even strictly on the basis of cash expenditures related to fixed costs Its total fixed costs are $440,000, but 20 percent of this value is represented by depreciation Its contribution margin (price minus variable cost) for each unit is $4 00 How many units does the firm need to sell to reach the cash break even point (Round your answer to the nearest whole number ) Cash break point event units 2 The capital structure for Cain Supplies is Cain Supplies Debt 8 $ 150,000 Common stock, $10 par 300,000 Total $ 450,000 Common shares 30,000 Compute the stock price for Cain if it sells at 18 times earnings per share and EBIT is $60,000 The tax rate is 10 percent (Do not round intermediate calculations Round your answer to 2 decimal places ) Stock price

Question

1  Calloway Cab Company determines its break even strictly on the basis of cash expenditures related to fixed costs  Its total fixed costs are $440,000, but 20 percent of this value is represented by depreciation  Its contribution margin (price minus variable cost) for each unit is $4 00  How many units does the firm need to sell to reach the cash break even point  (Round your answer to the nearest whole number ) Cash break point event          units 2  The capital structure for Cain Supplies is  Cain Supplies Debt   8  $ 150,000 Common stock, $10 par 300,000 Total $ 450,000 Common shares 30,000 Compute the stock price for Cain if it sells at 18 times earnings per share and EBIT is $60,000  The tax rate is 10 percent  (Do not round intermediate calculations  Round your answer to 2 decimal places ) Stock price

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1. Calloway Cab Company determines its break-even strictly on the basis of cash expenditures related to fixed costs. Its total fixed costs are $440,000, but

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Cain Supplies
Debt @ 8%	$	150,000
Common stock, $10 par		300,000
Total	$	450,000
Common shares		30,000