5-56. (Comprehensive present value) You are trying to plan for retirement in 10 years, and currently you have $100,000 in a savings account and $300,000 in stocks. In addi- tion, you plan on adding to your savings by depositing $10,000 per year in your sav- ings account at the end of each of the next 5 years and then $20,000 per year at the end of each year for the final 5 years until retirement. a. Assuming your savings account returns 7 percent compounded annually, and your investment in stocks will return 12 percent compounded annually, how much will you have at the end of 10 years? (Ignore taxes.) b. If you expect to live for 20 years after you retire, and at retirement you deposit all of your savings in a bank account paying 10 percent, how much can you withdraw each year after retirement (20 equal withdrawals beginning 1 year after you retire) to end up with a zero balance upon your death? LO3 12-4. (Break-even point and operating leverage) Rockstar, Inc. manufactures a complete line of men's and women's casual shoes for independent merchants. The average selling price of its finished product is $85 per pair. The variable cost for this same pair of shoes is $44. The firm incurs fixed costs of $150,000 per year. a. What is the break-even point in pairs of shoes sold for the company? b. What is the dollar sales volume the firm must achieve to reach the break-even point? 432 E @ Reader Contents Notebook Bookmarks Flashcards 14:04 1 Q CHAPTER 12 . Determining th c. What would be the firm's operating profit or loss (that is, net operating income) at the following units of production sold: 7,000 pairs of shoes? 9,000 pairs of shoes? 15,000 pairs of shoes