Questions from Corporate Finance

Q: Healthy Potions, Inc., a pharmaceutical company, bought a machine

Healthy Potions, Inc., a pharmaceutical company, bought a machine at a cost of $2 million five years ago that produces pain-reliever medicine. The machine has been depreciated over the past five years...

Q: Why do analysts care about how sensitive EBITDA and EBIT are to

Why do analysts care about how sensitive EBITDA and EBIT are to changes in revenue?

Q: What are variable costs and fixed costs? What are some examples

What are variable costs and fixed costs? What are some examples of each? How are these costs estimated in forecasting operating expenses?

Q: When forecasting operating expenses, explain the difference between a fixed cost

When forecasting operating expenses, explain the difference between a fixed cost and a variable cost?

Q: Zippy Corporation just purchased computing equipment for $20,000.

Zippy Corporation just purchased computing equipment for $20,000. The equipment will be depreciated using a five-year MACRS depreciation schedule. If the equipment is sold at the end of its fourth yea...

Q: Define variable costs and fixed costs, and give an example of

Define variable costs and fixed costs, and give an example of each?

Q: Calculate the accounting operating profit break-even point and pretax operating

Calculate the accounting operating profit break-even point and pretax operating cash flow break-even point for each of the three production choices outlined below?

Q: The accounting operating profit break-even point tells us the number

The accounting operating profit break-even point tells us the number of units that must be sold for a firm to break-even in a given year from an accounting operating profit perspective. What measure t...

Q: What is simulation analysis, and how is it used?

What is simulation analysis, and how is it used?

Q: Duplicate Footballs, Inc., expects to sell 15,000 balls

Duplicate Footballs, Inc., expects to sell 15,000 balls this year. The balls sell for $110 each and have a variable cost per unit of $80. Fixed costs, including depreciation and amortization, are curr...