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Need this question ASAP please Q2) The Onmacabim Corporation manufactures air conditioners for the elevators in the high-rise residential wildings. They provide the following information:
Need this question ASAP please
Q2) The Onmacabim Corporation manufactures air conditioners for the elevators in the high-rise residential wildings. They provide the following information: In the current financial year, the company has managed to sell 3,000 units, whose average selling price S1S0. The associated variable cost of manufacturing an air conditioner is $100 per unit, while the fixed costs the firm average around $40,000 per annum. The annual interest expense for obtaining the firm's debt financing amounts to $20,000 per year. The spplicable corporste tax rate is 40%. Show all intermediate steps, workings, calculations, and formulas, along with the final answer. A) Estimate the EBIT broak-even point in the number of whin for the eserpery. 8 mark B) Calculate the EBIT break-even point in the dollar sales wolume for the coepery: (1) matk) C) Find the minimum price per unit the firm should charge to reach the EBII breakeven. (1 eath ) D) Find the new level of the firm's Net Income, if the economy was booming and the company s Soles level bad increased by 25%. (l mark) E) Determine the firm's operating leverage and interpret its meaning. (1 mark) Step by Step Solution
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