Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Help with these questions thanks! Smith Brothers has annual fixed costs of $200,000, EBIT of $400,000 and depreciation and amortization charges of $5,000. They also
Help with these questions thanks!
Smith Brothers has annual fixed costs of $200,000, EBIT of $400,000 and depreciation and amortization charges of $5,000. They also have variable costs of $4 per unit and sell items for $10 per unit. (3 Marks) Answer to 2 decimal places. a) Calculate the Cash Flow DOL Answer: b) Calculate the Accounting DOL Answer: c) Calculate the Cash Flow Break Even Answer: d) Calculate the Accounting Break Even Answer: Jones Brothers has two possible investment alternatives summarised below: Project B Project A $1m Fixed Costs $250,000 $200,000 $50,000 Depreciation and Amortisation Sale price per unit $20 $20 Variable Cost per unit $7 $12 e) Calculate the cash flow crossover level of unit sales. Answer: f) Calculate the accounting cross over level of unit salesStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started