Hw-1638 finance problem solutions | Accounting homework help

  

9 – #20

Your buddy comes to you with a sure fire way to make some quick money and help pay off your student loans. His idea is to sell T-shirts with words “I get” on them, “You get it?” He says, “You see all those bumper stickers and T-shirts that say, ‘got milk’ or ‘got surf’. So this says, ‘I get.’ It’s funny! All we have to do is buy a used silk screen press for $3,500 and we are in business!” Assume there are no fixed costs, and you depreciate the $3,500 in the first period. Further, taxes are 30%.
a. What is the accounting break-even point if each shirt costs $6.50 to make and you can sell them for $13.00 apiece?
Now assume one year passed and you have sold 5,000 shirts! You find out that the Dairy Farmers of America have copyrighted the “got milk” slogan and are required you to pay $15,000 to continue operations. You expect the craze will last for another three years and that your discount rate is 12%.
b. What is the financial break-even point for your enterprise now?

Calculate your order
Pages (275 words)
Standard price: $0.00
Client Reviews
4.9
Sitejabber
4.6
Trustpilot
4.8
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00
Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.
Power up Your Study Success with Experts We’ve Got Your Back.