1. A company sells Gizmos to consumers at a price of $112 per unit. The costs to produceGizmos is $24 per unit. The company will sell 12,000 Gizmosto consumers each year. The fixed costs incurred each year will be $170,000. There is an initial investment to produce the goods of $2,900,000 which will be depreciated straight line over 19 year life of the investmentto a salvage value of $0. The opportunity cost of capital is 11% and the tax rate is 40%. What is operating cash flow each year? Should the company accept or reject this project? Find the net present value break-even level of units sold. Round your answer to the nearest whole unit.
2. You estimate that your sheep farm will generate 1.1 million of profits on sales of 4.4 million under normal economic conditions, and that the degree of operating leverage is 2.7.What will sales be if profits turn out to be 1.5 million?Enter your answer in millions, rounded to two decimal places.