The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $72.48. The variable cost per unit is $23.98, Poseidon Swim has average fixed costs per year of $16,084.

What would be the operating profit or loss associated with the production and sale of 315 swim trunks?

Your Answer:

Use the following information about Rat Race Home Security, Inc. to answer the questions:

Average selling price per unit $308.

Variable cost per unit $196

Units sold 481

Fixed costs $8,093

Interest expense $15,735

Based on the data above, what is the degree of financial leverage of Rat Race Home Security, Inc.?

Your Answer:

Genetic Insights Co. purchases an asset for $11,710. 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 $4,122.

Calculate gain or loss on disposal.

Gain should be entered as a positive number. Loss should be entered as a negative number. Round the answer to two decimals.

Your Answer: