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=