The goodsmith charitable foundation, which is tax-exempt, issued debt last year at 13 percent to finance a new playground facility in los angeles. this year the cost of debt is 25 percent higher; that is, firms that paid 15 percent for debt last year will be paying 18.75 percent this year. a. if the goodsmith charitable foundation borrowed money this year, what would the aftertax cost of debt be, based on their cost last year and the 25 percent increase? (do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.)

Lynch company manufactures and sells a single product. the following costs were incurred during the company’s first year of operations: variable costs per unit: manufacturing: direct materials $ 12 direct labor $ 6 variable manufacturing overhead $ 1 variable selling and administrative $ 1 fixed costs per year: fixed manufacturing overhead $ 308,000 fixed selling and administrative $ 218,000 during the year, the company produced 28,000 units and sold 15,000 units. the selling price of the company’s product is $56 per unit. required: 1. assume that the company uses absorption costing: a. compute the unit product cost. b. prepare an income statement for the year. 2. assume that the company uses variable costing: a. compute the unit product cost. b. prepare an income statement for the year.

An object that is clicked on and takes the presentation to a new targeted file is done through a

Carlton industries is considering a new project that they plan to price at $74.00 per unit. the variable costs are estimated at $39.22 per unit and total fixed costs are estimated at $12,085. the initial investment required is $8,000 and the project has an estimated life of 4 years. the firm requires a return of 8 percent. ignore the effect of taxes. what is the degree of operating leverage at the financial break-even level of output?