Q3/A cement manufacturing company has a sales value for the first half of the year in the company's records ($492,000) for the year 2020, and the company records for that year provided the following information: Depreciation ($80,000) variable costs per unit (1,128) and fixed costs (25,000), Invested capital ($ 860000), production capacity (4500) units. Find each of: the annual project profit 2 - the profit percentage of the project 3 - the safety threshold ratio 4 - the size and value of the break-even point 5- determine whether the project is economically feasible

Q3/A cement manufacturing company has a sales value for the first half of the year in the company's records ($492,000) for the year 2020, and the company records for that year provided the following information: Depreciation ($80,000) variable costs per unit (1,128) and fixed costs (25,000), Invested capital ($ 860000), production capacity (4500) units. Find each of: the annual project profit 2 - the profit percentage of the project 3 - the safety threshold ratio 4 - the size and value of the break-even point 5- determine whether the project is economically feasible

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter2: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 14SP

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