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The Wildhorse Publications Textbook Company sells all of its books for $100 per book, and it currently costs $50 in variable costs to produce each

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The Wildhorse Publications Textbook Company sells all of its books for $100 per book, and it currently costs $50 in variable costs to produce each text. The fixed costs, which include depreciation and amortization for the firm, are currently $2 million per year. Management is considering changing the firm's production technology, which will increase the fixed costs for the firm by 58 percent but decrease the variable costs per unit by 58 percent. If management expects to sell 45,000 books next year, should they switch technologies? (Round answers to neorest whole dollar, . . 5. 275.) The current EBIT for the firm is $ If the firm changes technology, the firm's new EBIT will be $ The firm should the new technologies. The law firm of Donald, Cheatem, and Howe has monthly fixed costs of $81,000, EBIT of $220,000, and depreciation charges on its office furniture and computers of $5,000. Calculate the Cash Flow DOL for this firm. (Round answer to 3 decimal places, eg. 15.251.) The firm's Cash Flow DOL is The Carla Vista Co. is going to take on a project that is expected to increase its EBIT by $90,000, its fixed cost cash expenditures by $104,000, and its depreciation and amortization by $70,000 next year. If the project yields an additional 10 percent in revenue, what percentage increase in the project's EBIT will result from the additional revenue? (Round answer to 1 decimal place, e.g. 15.2.) The percentage increase in pretax operating cash flow driven by the additional revenue will be Crane's Candles will be producing a new line of dripless candles in the coming years and has the choice of producing the candles in a large factory with a small number of workers or a small factory with a large number of workers. Each candle will be sold for $10. If the large factory is chosen, the cost per unit to produce each candle will be $2.50. The cost per unit will be $7.00 in the small factory. The large factory would have fixed cash costs of $2.4 million and a depreciation expense of $300,000 per year, while those expenses would be $590,000 and $100,000, respectively in the small factory. Calculate the accounting operating profit break-even point for both factory choices for Crane's Candles. (Round answers to neorest whole units es. 152.) The accounting break-even point for large factory is unithand for small factory is

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