I have a few finance questions that I need assistance with please see attachment

1. In a slow year, Deutsche Burgers will produce 3.5 million hamburgers at a total cost of $5.1 million. In a good year, it can produce 6.5 million hamburgers at a total cost of $6.0 million. a. What are the fixed costs of hamburger production? (Do not round intermediate calculations. Enter your answer in millions rounded to 1 decimal place.) Fixed cost $ million b. What is the variable cost per hamburger? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Variable cost $ per burger c. What is the average cost per burger when the firm produces 1 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Average cost $ per burger d. What is the average cost per burger when the firm produces 2 million hamburgers? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Average cost $ per burger e. Why is the average cost lower when more burgers are produced? The fixed costs are spread across more burgers. Fixed costs are constant per burger. Variable costs are lower per burger. 2. A project currently generates sales of $18 million, variable costs equal 60% of sales, and fixed costs are $3.6 million. The firm's tax rate is 35%. Assume all sales and expenses are cash items. a. What are the effects on cash flow, if sales increase from $18 million to $19.8 million? (Input the amount as positive value. Enter your answer in dollars not in millions.) Cash flow by $ b. What are the effects on cash flow, if variable costs increase to 70% of sales? (Input the amount as positive value. Enter your answer in dollars not in millions.) Cash flow by $ 2. Finefodder's analysts have come up with the following revised estimates for the Gravenstein store: Range Pessimistic Expected Optimistic $ 4,920,000 $ 3,600,000 $ 3,200,000 14,000,00 20,000,00 22,000,00 0 0 0 78 77 76 $ 2,500,000 $ 2,400,000 $ 2,100,000 Investment Sales Variable costs as % of sales Fixed cost 3.Assume the project life is 12 years, the tax rate is 40%, the discount rate is 8%, and the depreciation method is straight-line over the project's life. Conduct a sensitivity analysis for each variable and range and compute the NPV for each. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Negative amounts should be indicated by a minus sign. Enter your answers in dollars, not in millions.) Pessimistic Investment NPV of Gravenstein Store Expected $ $ $ $ $ $ Fixed cost $ $ Variable costs as % of sales $ $ Sales $ $ 4. The following estimates have been prepared for a project: Fixed costs: $32,400 Depreciation: $21,600 Sales price per unit: $4 Accounting break-even: 30,000 units What must be the variable cost per unit? (Round your answer to 2 decimal places.) Variable cost $ per unit 5. Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $100. The materials cost for a standard diamond is $50. The fixed costs incurred each year for factory upkeep and administrative expenses are $180,000. The machinery costs $1.3 million and is depreciated straight-line over 10 years to a salvage value of zero. a. Optimistic What is the accounting break-even level of sales in terms of number of diamonds sold? (Do not round intermediate calculations.) Break-even sales diamonds per year b. What is the NPV break-even level of diamonds sold per year assuming a tax rate of 30%, a 10-year project life, and a discount rate of 12%? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Break-even sales diamonds per year 6. You are evaluating a project that will require an investment of $10 million that will be depreciated over a period of 14 years. You are concerned that the corporate tax rate will increase during the life of the project. a. Would this increase the accounting break-even point? Yes No b Would it increase the NPV break-even point? . Yes No 7. Modern Artifacts can produce keepsakes that will be sold for $70 each. Nondepreciation fixed costs are $1,600 per year, and variable costs are $35 per unit. The initial investment of $6,000 will be depreciated straight-line over its useful life of 5 years to a final value of zero, and the discount rate is 14%. a. What is the accounting break-even level of sales if the firm pays no taxes? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Acounting break-even level of sales units b. What is the NPV break-even level of sales if the firm pays no taxes? (Do not round intermediate calculations. Round your answer to the nearest whole number.) NPV break-even level of sales units c. What is the accounting break-even level of sales if the firm's tax rate is 40%? (Do not round intermediate calculations. Round your answer to the nearest whole number.) Acounting break-even level of sales units d. What is the NPV break-even level of sales if the firm's tax rate is 40%? (Do not round intermediate calculations. Round your answer to the nearest whole number.) NPV break-even level of sales units Finefodder's analysts have come up with the following revised estimates for the Gravenstein store: Range Pessimistic Expected Optimistic $ 4,920,000 $ 3,600,000 $ 3,200,000 14,000,00 20,000,00 22,000,00 0 0 0 78 77 76 $ 2,500,000 $ 2,400,000 $ 2,100,000 Investment Sales Variable costs as % of sales Fixed cost 3.Assume the project life is 12 years, the tax rate is 40%, the discount rate is 8%, and the depreciation method is straight-line over the project's life. Conduct a sensitivity analysis for each variable and range and compute the NPV for each. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Negative amounts should be indicated by a minus sign. Enter your answers in dollars, not in millions.) NPV of Gravenstein Store Expected Pessimistic Investment $ Sales $ Variable costs as % of sales $ Fixed cost Profit before tax Profit after tax NPV $ -4,920,0 $ 5,559,40 $ -4,336,3 $ -992750 $230318 $138190.8 $-4781809 $ Optimistic -3,600,0 7942000 -611534 -953040 $873620 $1262778 $524172 $-3075828 $757667 $-2442333 5. Dime a Dozen Diamonds makes synthetic diamonds by treating carbon. Each diamond can be sold for $100. The materials cost for a standard diamond is $50. The fixed costs incurred each year for factory upkeep and administrative expenses are $180,000. The machinery costs $1.3 million and is depreciated straight-line over 10 years to a salvage value of zero. a. What is the accounting break-even level of sales in terms of number of diamonds sold? (Do not round intermediate calculations.) Break-even sales 6200 diamonds per year b. What is the NPV break-even level of diamonds sold per year assuming a tax rate of 30%, a 10-year project life, and a discount rate of 12%? (Do not round intermediate calculations. Round your answer to the nearest whole number.) $ $ $ $ -3,2 873 -6,6 -833 Break-even sales 9031 diamonds per year 7. Modern Artifacts can produce keepsakes that will be sold for $70 each. Nondepreciation fixed costs are $1,600 per year, and variable costs are $35 per unit. The initial investment of $6,000 will be depreciated straight-line over its useful life of 5 years to a final value of zero, and the discount rate is 14%. a. What is the accounting break-even level of sales if the firm pays no taxes? (Do not round intermediate calculations. Round your answer to the nearest whole number.) 80 Acounting break-even level of sales units b. What is the NPV break-even level of sales if the firm pays no taxes? (Do not round intermediate calculations. Round your answer to the nearest whole number.) NPV break-even level of sales 104 units c. What is the accounting break-even level of sales if the firm's tax rate is 40%? (Do not round intermediate calculations. Round your answer to the nearest whole number.) 80 Acounting break-even level of sales units d. What is the NPV break-even level of sales if the firm's tax rate is 40%? (Do not round intermediate calculations. Round your answer to the nearest whole number.) NPV break-even level of sales 104 units 9. Modern Artifacts can produce keepsakes that will be sold for $120 each. Nondepreciation fixed costs are $1,600 per year, and variable costs are $100 per unit. The initial investment of $4,800 will be depreciated straight-line over its useful life of 6 years to a final value of zero, and the discount rate is 20%. a. What is the degree of operating leverage of Modern Artifacts when sales are $15,000? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Degree of operating leverage b. What is the degree of operating leverage when sales are $28,080? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Degree of operating leverage c. Why is operating leverage different at these two levels of sales? Degree of operating leverage is when profits are