Rexeleg Company manufactures a product with the following costs per unit at the expected production of 40,000 units:

Direct materials: $ 5
Direct labor: $10
Variable overhead: $7
Fixed overhead: $9
The company has the capacity to produce 50,000 units.
The product regularly sells for $50.
A wholesaler has offered to pay $43 per unit for 3,000 units.

If the firm chooses to accept the special order and reject some regular sales, the effect on operating income would be a:

Calvin works at a facility which processes apples. it costs the facility $0.68 to make either a jar of applesauce or a bottle of apple juice. due to the nature of the process and contractual agreements, calvin's facility must make and sell three jars of applesauce for every two bottles of apple juice. a jar of applesauce sells for $2.20, and a bottle of apple juice sells for $3.15. if the facility has annual overhead costs of $368,500, not including production costs, how many bottles of apple juice will the facility have sold when it breaks even every year? round to the nearest whole bottle, if necessary.

Ben collins plans to buy a house for $166,000. if the real estate in his area is expected to increase in value by 2 percent each year, what will its approximate value be five years from now?

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?