Samuel is the managerial accountant in charge of Company Guitig, which sells water bottles. He has the following costs:

Property Taxes $10,000

Lease $60,000

Production cost per bottle $5

Executive Salaries $100,000

Rent $80,000

The water bottle is sold at a premium price of $15. If Samuel produces the Break-Even amount of bottles, and taxes are 10%, should Samuel continue with the business based on the cash flow? Why or why not? Explain.

Break Even = Fixed Costs .

Price Variable Costs

Cash Flow

Taxable income

-Taxable Expenses

Profits before Taxes

-Taxes .

Profits after Taxes

+Non-taxable Income

-Non-taxable Expenses

= Cash Flow

$10.000 Property Tees Lease Production cost per bottle Executive Sales $80.000 $5 $100.000 $80,000 The water bottle is sold a premium price of $16. Samuel protestersk-Even amount of botes, and to aro 10%, should Samuel condue wire business based on the cash flow? Wiry or why not? Explain Break Even Fixed Coats Price - Varisti Costs Cash Flow Taxable income Table Expo Protes before axes Prots were $80 000 The water bottle is sold at a premium price of $15. If Sacel produces the Break Even amount of bottles and are 10M, should Samuel continue with the business based on the cash fow? Why or why not? Explain Break Even Fxed Coats Price-Vibe Costs Texable income Profits before Profiter Non-stable income Nie Express Cash Flow