8. Spencer Tools would like to offer a special product to its best customers. It...
90.2K
Verified Solution
Link Copied!
Question
Finance
8. Spencer Tools would like to offer a special product to its best customers. It requires $55,000 of investment for new equipment. The fixed costs are estimated at $21,000. The product sells for $22.50 per unit and variable cost is $10 per unit. (the interest rate is 10%) a) Using a 5-year depreciation schedule, what's the depreciation? Depreciation: $55000/5= $11000/year b) What is the accounting breakeven units? Accounting Breakeven Point: Fixed Cost/(Sales-VC)= $21000/$12.5= $1680 C) What's the cash break-even units? d) What's the financial breakeven units? e) What's the OCF (payment) when NPV =0
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.