Finance calculate

1. Calculate Costs and Break Even– Wales Inc manufactures biotech Gloves. The variable materials cost $10.50 per unit, and the variable labor costs is $9.49 per unit.
2. What is the variable costs per unit?
3. Suppose Wales incurs fixed costs of $888,500 during the year in which total production in 222,500 units. What are the total costs for the year?
4. If the selling price is $50.00 per unit, does Wales Inc break even on a cash basis?
5. If depreciation is $368,000 per year, what is the Accounting break even point?

2. Compute Average Costs – CU Eyewear Inc. can manufacture sunglasses for $28.50 per pair in raw material

Costs and $18.85 per pair in variable expense. The glasses sell for $155.00 per pair. Last year productions were 140,000 pairs. Fixed costs were $1.225,000.

1. What are the total costs?
2. What are the marginal costs per pair?
3. What are the average costs?
4. If the company are considering a one-time order for an extra 5,000 pairs. What is the minimum accepted total revenue from this order?

3. Scenario Analysis- ABA Inc has the following estimates for its new assembly project

Price- $2,000 per unit    Variable Costs -$500.00 per unit Fixed costs- $4,5000,000 Quantity- 105,000 units

Suppose the company believes all the estimates are accurate only to within plus or minus -10 percent.

1. What values should the company use for the four variables given. ( Base/ Best/ Worse)

4. Calculate Break Even- In each of the following cases calculate the Cash break-even and Accounting break-even.

Unit Price                              Unit Variable Costs                           Fixed Costs                          Depreciation

1. $3,150                                         $2,200                                        $9,150,000                             $3,300,000
2. $   120                                         $    105                                        $    126,000                            $    196,000
3. $     16                                         $         5                                        $        1,600                             $        1,116

5. Changes in Cash Account- Indicate the impact of the following corporation actions on cash, using the

Letter I- Increase    D- Decrease or N when there is No Changes

1. Interest is paid on a Note.
2. Sales is made and receive payment.
3. Equipment is purchase on credit.
4. A dividend is paid.
5. Real Estate is purchase with a mortgage.
6. Paid on Accounts Payable.
7. Went to bank for a loan.
8. Prepaid the Insurance bill.
9. Fixed Asset is sold to vendor
10. The Accounts receivable balance is reduced

6. Cash Equation – Sam’s Corporation has equity value of $14,480. The long-term debt is $9,970. Net Working Capital other then cash is $3,340. Fixed Assets are $12,840.
7. How much cash does the company have? If the Current liabilities are $4,980.
8. What is total Current Assets?