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QUESTION 29 For the next 4 questions suppose the following data holds: Initial Investment $15,000 Price $30/unit Fixed Costs $12,000/year Discount Rate 12% Variable Costs

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QUESTION 29 For the next 4 questions suppose the following data holds: Initial Investment $15,000 Price $30/unit Fixed Costs $12,000/year Discount Rate 12% Variable Costs $15/unit Project Life 4 years Depreciation $3,750/year Tax rate 40% How much is the contribution margin (after-tax)? $5 $6 $7 $8 $9 QUESTION 30 Continuation of the previous problem: Initial Investment $15,000 Price $30/unit Fixed Costs $12,000/year Discount Rate 12% Variable Costs $15/unit Project Life 4 years Depreciation $3,750/year Tax rate 40% What is the accounting break-even point? O 1050 units 1125 units 1250 units 1300 units O 1600 units QUESTION 31 Continuation of the previous problems: Initial Investment $15,000 Price $30/unit Fixed Costs $12,000/year Discount Rate 12% Variable Costs $15/unit Project Life 4 years Depreciation $3,750/year Tax rate 40% How much is the EAC of the initial investment? $568 $4154 $4321 $4938 $5523 QUESTION 32 Continuation of the previous problems: Initial Investment $15,000 Price $30/unit Fixed Costs $12,000/year Discount Rate 12% Variable Costs $15/unit Project Life 4 years Depreciation $3,750/year Tax rate 40% What is the PV break-even point? 1182 units 1337 units 1512 units 1945 units 1976 units

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