the risk to the firm of excessive levels of debt
Category: Uncategorized
000
for additional 5
they should sell the new expansion product for $16.80 per unit. Assuming the same sales mix of these two products
the contribution margin of current production is $7.20 and the contribution margin of the total expected production (current + expansion) is $7.03 per unit
000 750
000 Sales 1050000 12.5 1134000 12.74157303
735 units.
reduction in per capital income
and the condition of GDP. The condition of the company such as employee condition
national security
and leverage over time. This overall condition can be a risky thing for the ABC Company.
investing
and financing activities. This calculation tells that the ABC Company enjoyed a cash flow provided from operations of about $3
ABC Company could invest more in other firms’ securities like common stocks or debts to earn more cash proceeds in return. More common stocks may also be issued to collect funds to invest on more profitable sectors or to involve more production activities by expanding its manufacturing activities. However
full financing of this project cannot be done with the current level of cash flows generated from the company as the new project will need additional financing for raw materials to manufacture with more time. So more funds will be needed in the new project to be invested in and more labor force to produce effectively to supply in time delivery will also be needed.
Aidan. The Royal Tombs of Ancient Egypt. Pen and Sword
2016.