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NEW QUESTION: 1
A manufacturing company sells 5 different products.
The company holds no inventories and has a high level of fixed cost.
Place against the statements below the comment "needed" or "not needed" to select ALL of the information required to calcuate the total number of units to break-even.

Answer:
Explanation:

NEW QUESTION: 2

A. SAT
B. HAT
C. BAT
D. RAT
Answer: B

NEW QUESTION: 3
A company is considering making material adaptations to its warehouse and equipment. These costs will be $25,000,000 and will have a benefit period of 10 years. The income tax rate during this period will be 30%. The company is considering the effects of capitalizing the costs versus expensing the cost.
Which of the following effects will occur if the costs are expensed rather than capitalized?
A. Expensing will cause income to be greater in the years after the first year by $1,750,000 per year
B. Expensing will cause the return on equity to be lower in later years
C. Expensing will cause the return on assets in later years to be lower
Answer: A
Explanation:
In the years following the year the costs were incurred, there will be no expense if the costs were expensed in the first year. However, if costs were capitalized, there would be a $2,500,000 depreciation cost, which, after the tax effects (.3 x $2,500,000), would make income less by $1,750,000.