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Djo Outerwear Corporation can manufacture mountain climbing shoes for $25.80 per pair in variable raw material costs and $1105 per pair in variable labor expense.
Djo Outerwear Corporation can manufacture mountain climbing shoes for $25.80 per pair in variable raw material costs and $1105 per pair in variable labor expense. The shoes sell for $138 per pair. Last year, production was 100,000 pairs- Fixed costs were $1,135,000. a. What were total production costs? {Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.} b. What is the marginal cost per pair? {Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.} c. What is the average cost per pair? {Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.} cl. If the company is considering a onetime order for an extra 1000 pairs, what is the minimum acceptable total revenue from the order? [Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.1 a. Total production cost b. Marginal cost per pair c- Average cost per pair d. Minimum total revenue Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price = $2,601] per unit; variable costs = $520 per unit; xed costs = $1.? million; guantity = 82,090 units- Suppose the company believes all of its estimates are accurate only to within 4:20 percent What values should the company use for the four variables given here when it performs its bestcase scenario analysis'EI What about the worstcase scenario? {Do not round intermediate calculations and round your answer to the nearest Ivvhole number, e.g., 32.} m We are evaluating a project that costs $TEB,4GU, has a ninayear life, and has no salvage value- Assu me that depreciation is straightline to zero over the life of the project Sales are projected at TSDDD units per year. Price per unit is $52, variable cost per unit is $36, and xed costs are $?SD,ODD per year. The tax rate is 2'1 percent, and we require a return of 12 percent on this project. a-1.Calculate the accounting breakeven point. {Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.} What is the degree of operating leverage at the accounting breakeven point? {Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32:151.} Calculate the basecase cash ow and NW. {Do not round intermediate calculations. Round your cash flow answer to the nearest whole number, e.g., 3?. Round your NF'U answer to 2 decimal places, e.g., 32.15.} What is the sensitivity of NW to changes in the quantity sold":l {Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.} What is the sensitivity of OCF to changes in the variable cost figure? {A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. } - - - A project has the following estimated data: Price = $48 per unit; 1irariatlle costs = $32 per unit; xed costs = $213,501]; required return = 8 percent; initial investment = $36,DDD; life = six years. a. Ignoring the effect of taxes, what is the accounting breakeyen quantity? {Do not round intermediate calculations and round your answer to :2 decimal places, e.g., 3115.1 b. What is the cash breakeven quantity? [Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.} c. What is the nancial breakeyen quantity? {Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.} d. What is the degree of operating leverage at the nancial breakeven level of output? [Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.151.) 3. Accounting break-even quantity b. l[lash break-even quantity c. Financial breakeven quantity d. DDL At an output level of 49,000 units, you calculate that the degree of operating leverage is 3.6- The output rises to 55,000 units. What will the percentage change in operating cash flow be? [Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.} Peroentage change in DEF _m 1it'll'ill the new level of operating leverage be higher or lower? O Higher O Lower
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