7A-2

Haunted Forest, Inc.is selling fog machines.

Use the following information about Haunted Forest, Inc. to answer the following questions.

Average selling price per unit $325.

Variable cost per unit $217

Units sold 376

Fixed costs $17,811

Interest expense $3,473

Based on the data above, what will be the resulting percentage change in earnings per share if they expect units produced and sold to change -0.2 percent?

7D-1

Leaf It To Us Corporation is considering an expansion project. The necessary equipment could be purchased for $25,540,227 and shipping and installation costs are another $17,964. The project will also require an initial $161,952 investment in net working capital. What is the projects initial investment outlay?

Round the answer to the whole $.

7E-1

Genetic Insights Co. purchases an asset for $12,358. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic Insights has a tax rate of 30%. The asset is sold at the end of six years for $3,792.

Calculate accumulated depreciation over 6 years. Round the answer to two decimals.