50.1K

Verified Solution

Link Copied!

NOTE Answer All Questions, INDICATE YOUR STEP WISE CALCULATIONS CHOOSE THE MOST APPROPRIATE OPTION AND CIRCLE THE SAME [3 Marks] 1. The expected variable cost per unit is $14 and the expected fixed costs are $320,000. The fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $65,000. The tax rate is 34 percent . The sales price is estimated at $76 a unit, plus or minus 3 percent. What is the earnings before interest and taxes under the base case scenario to produce 7000 units? A. $46,920 B. $93,160 C. $40,000 D. $49,000 a 2. Emirates Metals is analyzing a proposed project. The company expects to sell 19,000 units, plus or minus 3 percent. The expected variable cost per unit is $4.10 and the expected fixed costs are $40,000. The fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $32,000. The tax rate is 34 percent. The sales price is estimated at $9.50 a unit, plus or minus 4 percent. What is the operating cash flow for a sensitivity analysis using total fixed costs of $38,000? A. $53,516 B. $22,436 C. $27,210 D. $48,672 3. Three months ago, you purchased 180 shares of stock in RAAS Trading at a price of $48.70 a share. The stock pays a quarterly dividend of $0.25 a share. Today, you sold all of your shares for $51.60 per share. What is the total amount of your dividend income on this investment? A. $115 B. $135 C. $45 D. $150

Answer & Explanation Solved by verified expert

See Answer