1. Dolby Electronics assembles and sells home theatre installations at an average price of $8K/unit. Their cost is $5K/unit, and their overhead is $12K/month. What is their breakeven monthly sales in # of units?
2. An asset fitting into the 10-year MACRS category was purchased 2 years ago for $100,000. The book value of this asset is now (Do not round intermediate calculations.)
$86,200
$76,600
$72,000
$66,800
3. Firm X is considering the replacement of an old machine with one that has a purchase price of $80,000. The current market value of the old machine is $21,000 but the book value is $38,000. The firm's tax rate for ordinary income is 39%. What is the net cash outflow for the new machine after considering the sale of the old machine?
$52,370
$48,970
$64,720
$58,240