7A5:

The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $61.07. The variable cost per unit is $25.43, Poseidon Swim has average fixed costs per year of $5,750.

Assume that current level of sales is 455 units. What will be the resulting percentage change in EBIT if they expect units sold to changes by 5.0 percent?(You should calculate the degree of operating leverage first).

(Write the percentage sign in the "units" box).

Round the answer to two decimal places.

7E5:

Genetic Insights Co. purchases an asset for $18,274. 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 $3,517.

Calculate After-Tax Cash Flow at disposal.Round the answer to two decimals.