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Please help me work through the question below:Sales are a function of the number of packs sold and the price per pack. Likewise, variable costs are a function of the number of packs sold and the cost to produce each pack. You sell these packs to retailers for 200 dollars each. In the current year you will sell 100,000 packs. Your fixed costs including such items as insurance, marketing, travel, shows, office supplies, warehouse rentals etc. totals 5 million dollars this year and are not part of the 80 dollars per pack manufacturing cost. The federal income tax rate for your company is 40 percent. Your company is publicly traded on the NASDAQ with 1,000,000 shares outstanding.Please calculate the earnings per share and price/earnings multiple assuming that the current stock prices is 10 dollars per share.
Amount in $Sale Price per packVariable manufacturing cost per packTotal Sales revenueTotal manufacturing costsContributionless: Fixed costProbit before taxLess: tax @ 40%Net profit after…
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