Please let me the answer to these questions.Thanks Q3: A special project is going to be started by Hally Corporation. Companyis considering using stocks of an old raw material in a special project. Thespecial project would require all 230 kilograms of the raw material that are instock and that originally cost the company $900 in total. If the company wereto buy new supplies of this raw material on the open market, it would cost$8.25 per kilogram. However, the company has no other use for this rawmaterial and would sell it at the discounted price of $7.50 per kilogram if itwere not used in the special project. The sale of the raw material wouldinvolve delivery to the purchaser at a total cost of $50 for all 230 kilograms.What is the relevant cost of the 230 kilograms of the raw material whendeciding whether to proceed with the special project?Q4: Contribution Margin of Walls Corporation, Consumer division is Rs.1900,000 and the fixed expenses is Rs. 2,200,000 per year. Company isconsidering to eliminate this consumer division. If the Consumer Division iseliminated, $1,700,000 of the above fixed expenses could be avoided. Whatwill be the effect on Wall's profit next year if Consumer Division iseliminated? Q1: Zeal Corporation is thinking about the dropping of its product Z. Sales ofthe product total Rs.400.000 per year; variable expenses total Rs. 270,000 peryear. Fixed expenses charged to the product total Rs. 150,000 per year. Thecompany estimates that Rs. 70,000 of these fixed expenses are not avoidableeven if the product is dropped. If Product Z is dropped, what will be the netincrease or decrease in profit of the company?

Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…

Q1: Zeal Corporation is thinking about the dropping of its product Z. Sales of the product total Rs.400.000 per year; variable expenses total Rs. 270,000 per year. Fixed expenses charged to the product total Rs. 150,000 per year. The company estimates that Rs. 70,000 of these fixed expenses are not avoidable even if the product is dropped. If Product Z is dropped, what will be the net increase or decrease in profit of the company?

Q1: Zeal Corporation is thinking about the dropping of its product Z. Sales of the product total Rs.400.000 per year; variable expenses total Rs. 270,000 per year. Fixed expenses charged to the product total Rs. 150,000 per year. The company estimates that Rs. 70,000 of these fixed expenses are not avoidable even if the product is dropped. If Product Z is dropped, what will be the net increase or decrease in profit of the company?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 6P

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