1. The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $37.47. The variable cost per unit is $26.38, Poseidon Swim has average fixed costs per year of $23,078.

What is the break-even point in dollar sales?

2. Irresistible Chips is reviewing its financial condition. The firm generated an operating profit of $3,554,884. The firms interest expense was $2,071,606.

What will be the resulting percentage change in earnings per share if they expect operating profit to change -2.5 percent?

(You should calculate the degree of financial leverage first).

(Write the percentage sign in the "units" box).

Round the answer to two decimals

3. Genetic Insights Co. purchases an asset for $14,784. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic Insights has a tax rate of 30%. The asset is sold at the end of six years for $4,287.

Calculate book value of an asset. Round the answer to two decimals.

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