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need help on how to do these problems please 18. Puddlemuffin Corporation earned revenue of $25,000,000 last year. Variable costs were 48% of revenues and

need help on how to do these problems please
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18. Puddlemuffin Corporation earned revenue of $25,000,000 last year. Variable costs were 48% of revenues and fixed costs were $7,000,000, including $1,000,000 in marketing costs Calculate the following: a. Profit last year b. The revenues required to break even c. The revenues required to earn a before-tax profit of $5,000,000 d. The margin of safety ratio last year e. Puddlemuffin is thinking of concentrating more on manufacturing by outsourcing their marketing to a firm that charges their clients 5% of their revenue. At what level of sales would Puddlemuffin be indifferent between their current structure and out- sourcing the marketing? 19. Entrepreneur Jayesh Jain is planning to start a new business. He estimates that fixed costs will be $300,000 annually for the first few years. Variable costs will be $200 per unit, and he hopes to sell each unit for $320 per unit. As this product is new, Jain is unsure of demand, but preliminary market studies show he should be able to sell 2.000 units in the first year. Calculate the following: a. Profit for the first year if Jain is able to sell the projected amount of units b. Unit sales required to break even c. Unit sales required to earn a before-tax profit of $90,000 d. The margin of safety for the first year in units e. Suppose Jain could save $50,000 in fixed costs if he outsources part of the production process, which will cost $10 more per unit. What is the point of indifference in units? 21. Atmince Company sold 120,000 units this year for $15 each. Variable costs were 59 per unit, and fixed costs were $600,000. Calculate the following: a. Before tax income this year b. The number of units required to break even c. The number of units required to earn before-tax income of $300,000 d. The margin of safety this year in units e. The indifference point between this year's cost structure and next year's, when Atmince plans to raise the price by $0.75 to compensate for an expected $243,750 increase in fixed costs First, calculate the net initial investment, the annual cash flows, and the terminal cash flows of the project. 1. Dama, Inc., is considering purchasing a new machine costing $1,200,000 to replace their current machine, which has a book value of $350,000 and could be sold for $75,000. The new machine would last 10 years and would have a salvage value of $200,000. Each year, the new machine would save $300,000 in operating expenses. Dama has a tax rate of 30%, and a required rate of return of 9%. Calculate the net initial investment, the annual cash flows, and the terminal cash flows of the project. 2. Palles Company is considering a new investment that would cost $700,000 for new as- sets that would have a salvage value of $100,000. The project would last for 6 years and would bring in $200,000 in additional income each year. To free up capacity for the new project, Palles would have to sell off assets with a book value of $100,000 and sales value of $250,000. Palles has a tax rate of 20% and a required rate of return of 11%. Calculate the net initial investment, the annual cash flows, and the terminal cash flows of the project

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