7c

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 $318.

Variable cost per unit $201

Units sold 339

Fixed costs $16,503

Interest expense $4,417

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

7e

Genetic Insights Co. purchases an asset for $13,718. 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 $4,983.

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