Marginal ACCOUNTS properly without ai or internet as it will go through scan

ANSWER IT CORRECTLY NO HANDWRITTEN SOLUTION 5 EASY ANS PROPER STEPS AND NICELY DONE MIGHT GET TIPPED NO CRAB IF KNOW THEN BID

You are required to analyze the financial information provided and answer the
questions below. Show all workings and provide an explanation for each of your
answers.
Case Information: Assume that you are a managerial accountant for a manufacturing
company. You have been given the following financial information for the year ended
31 December 2022:
Sales Revenue: $5,000,000 Cost of goods sold: $3,000,000 Operating expenses:
$1,000,000 Depreciation expense: $200,000 Interest expense: $100,000 Tax rate: 30%
Question 1: Calculate the company’s gross profit margin, operating profit margin,
and net profit margin.
Question 2: Calculate the company’s break-even point in units and dollars.
Question 3: Assume that the company plans to increase its sales revenue by 10%.
Calculate the new break-even point in units and dollars.
Question 4: The company is considering two investment opportunities, as follows:
•
•
Investment A requires an initial investment of $500,000 and will generate
annual cash inflows of $100,000 for five years.
Investment B requires an initial investment of $700,000 and will generate
annual cash inflows of $150,000 for five years.
Which investment opportunity should the company choose based on the net present
value method assuming a required rate of return of 10%?
Question 5: Calculate the company’s return on investment (ROI) and residual income.
The company’s assets are valued at $8,000,000, and the company’s cost of capital is
12%.