7A2:

The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $41.22. The variable cost per unit is $21.17, Poseidon Swim has average fixed costs per year of $31,644.

What is the break-even point in dollar sales?

7B2:

Irresistible Chips is reviewing its financial condition. The firm generated an operating profit of $4,146,992. The firm's interest expense was $2,305,451.

What will be the resulting percentage change in earnings per share if they expect operating profit to change 2.7 percent?

(You should calculate the degree of financial leverage first).

7C2:

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 $317.

Variable cost per unit $204

Units sold 336

Fixed costs $17,096

Interest expense $4,822

Based on the data above, what is the degree of total (combined) leverage of Haunted Forest, Inc.?

Round the answer to two decimals

7D2:

El Dorado Storage has the following projections for Year 1 of a capital budgeting project.

Sales $246,499

Variable costs $115,152

Fixed costs adn selling, general and administrative expenses $10,340

Depreciation Expense $21,545

Tax Rate 35%

Calculate the operating cash flow for Year 1.Round the answer to two decimals

7E2:

Genetic Insights Co. purchases an asset for $18,045. 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 $3,188.

Calculate book value of an asset.Round the answer to two decimals.