The management of the local cotton mill is evaluating the replacement of low-wage workers by automated machines. if this project is adopted, production and sales are expected to increase significantly: norma rae, the mill’s financial analyst, expects cash will have to increase by $8,000 and the accounts receivable will increase by $10,000 in response to the increase in sales volume. because of the higher level of production, inventory will have to increase by $12,000, with an associated $6,000 increase in accounts payable. accrued taxes and wages, even with the decrease in the number of laborers, are estimated to increase by $2,500. calculate the change in net working capital if the automation project is adopted

Horace society is planning its annual western fair raceway gala. the gala committee has assembled the following expected costs for the event: dinner (per person) $10 gaming token and program (per person) $2 prize payouts $4,300 tickets and advertising $800 private box suite rental $1,700 lottery licenses $200 the committee members would like to charge $40 per person for the evening’s activities. required: 1. what is the break-even point for the dinner-dance (in terms of the number of persons who must attend)? 2. assume that last year only 200 persons attended the dinner-dance. if the same number attend this year, what price per ticket must be charged in order to break even? 3. refer to the original data ($40 ticket price per person). prepare a cvp graph for the dinner- dance from zero tickets up to 600 tickets sold.