Title: Calculating Costs and Break-even, Returns, Yields, and Returns and Variability

Contents

Page 360 (1)

 Calculating Costs and Break-even: Night Shades inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $5.43 per unit, and the variable labor cost is $3.13 per unit.

a) What is the variable cost per unit?

b) Suppose NSI incurs fixed costs of $720,000 during a year in which total production is 280,000 units. What are the total costs for the year?

c) If the selling price is $19.99 per unit, Does NSI break even on a cash basis?

c) If depreciation is $220,000 per year, what is the accounting breakeven point?

Page 396 (1, 2)

1. Calculating Returns: Suppose a stock had an initial price of $91 per share, paid a dividend of $2.40 per share during the year and had an ending share price of $102. Compute the percentage total return.

2. Calculating Yields: In problem 1, what was the dividend yield? The capital gains yield?

Page 397 (7)

Calculating Returns and Variability: Using the following returns, calculate the arithmetic average returns, the variances, and the standard deviations of X and Y.

The above questions are from the below text:

Ross, S., Westerfield, R., & Jordan, B. (2012). Fundamentals of corporate finance.

Boston, MA: McGraw-Hill/Irwin. 

Number of words: 498 (1.66 pages)