Assignment 2 Chapters 5-6-8 2

Chapter 10 18) For February, the cost components of a picture frame include $0.30 for the glass, $0.75 for the wooden frame, and $0.80 for assembly. The assembly desk and tools cost $500. 250 frames will be produced in the coming year. What cost function best represents these costs? A) y = 1.85 + 500X B) y = 500+ 1.85X C) y = 3.85 + 600X D) y = 1.05 + 500X

question 15 After spending a year and ​$49,000​,you finally have the design of your new product ready. In order to start​ production, you will need ​$31,000 in raw materials and you will also need to use some existing equipment that​ you've fully​ depreciated, but which has a market value of ​$103,000. Your colleague notes that the new product could represent 10​% of the​ company's overall sales and that 10​% of overhead is ​$60,000. Your tax rate is 25​%.As you start your analysis of the​ product, what should be your initial incremental free cash​ flow? The initial incremental free cash flow is ​$________.​(Round to the nearest dollar. Be sure to use a negative sign if the answer is​ negative.)

Question 7           You are contemplating leaving your full-time employment to concentrate your ability on the marketing of a new low-energy portable heater. You have spoken to a group of manufacturers of similar product, and you have produced the following data based upon the production of 1200 heaters in the six months to December 31, 2021.                                                                                       R                                 R Unit selling price                                                                                            160 Less: Direct materials                                                 50            Direct labour                                                    30 Fixed Overheads: Admin                                                                         4.00 Rent                                                                            7.50 Rates…

Question 5             You are contemplating leaving your full-time employment to concentrate your ability on the marketing of a new low-energy portable heater. You have spoken to a group of manufacturers of similar product, and you have produced the following data based upon the production of 1200 heaters in the six months to December 31, 2021.                                                                                       R                                 R Unit selling price                                                                                            160 Less: Direct materials                                                 50            Direct labour                                                    30 Fixed Overheads: Admin                                                                         4.00 Rent                                                                            7.50 Rates…

Question 4             You are contemplating leaving your full-time employment to concentrate your ability on the marketing of a new low-energy portable heater. You have spoken to a group of manufacturers of similar product, and you have produced the following data based upon the production of 1200 heaters in the six months to December 31, 2021.                                                                                       R                                 R Unit selling price                                                                                            160 Less: Direct materials                                                 50            Direct labour                                                    30 Fixed Overheads: Admin                                                                         4.00 Rent                                                                            7.50 Rates…

Question 11             You are contemplating leaving your full-time employment to concentrate your ability on the marketing of a new low-energy portable heater. You have spoken to a group of manufacturers of similar product, and you have produced the following data based upon the production of 1200 heaters in the six months to December 31, 2021.                                                                                       R                                 R Unit selling price                                                                                            160 Less: Direct materials                                                 50            Direct labour                                                    30 Fixed Overheads: Admin                                                                         4.00 Rent                                                                            7.50 Rates…

Question 22           You are contemplating leaving your full-time employment to concentrate your ability on the marketing of a new low-energy portable heater. You have spoken to a group of manufacturers of similar product, and you have produced the following data based upon the production of 1200 heaters in the six months to December 31, 2021.                                                                                       R                                 R Unit selling price                                                                                            160 Less: Direct materials                                                 50            Direct labour                                                    30 Fixed Overheads: Admin                                                                         4.00 Rent                                                                            7.50 Rates…

Question 23             You are contemplating leaving your full-time employment to concentrate your ability on the marketing of a new low-energy portable heater. You have spoken to a group of manufacturers of similar product, and you have produced the following data based upon the production of 1200 heaters in the six months to December 31, 2021.                                                                                       R                                 R Unit selling price                                                                                            160 Less: Direct materials                                                 50            Direct labour                                                    30 Fixed Overheads: Admin                                                                         4.00 Rent                                                                            7.50 Rates…

Required information Problem 03.036 DEPENDENT MULTI-PART PROBLEM - ASSIGN ALL PARTS A process for producing the mosquito repellant Deet has an initial investment of $205,000 with annual costs of $55,000. Income is expected to be $90,000 per year. Problem 13.036.b: Calculate the breakeven point What is the annual breakeven production quantity for both payback periods if net profit, that is, income minus cost, is $10 per gallon? When i=0%, the annual breakeven production quantity is determined to be 3504 gallons per year. When 12%, the annual breakeven production quantity is determined to be 1914 gallons per year.

Problem 9-19 Project Evaluation (LO2, LO3) United Pigpen is considering a proposal to manufacture high-protein hog feed. The project would make use of an existing warehouse, which is currently rented out to a neighboring firm. The next year's rental charge on the warehouse is $180,000, and thereafter, the rent is expected to grow in line with inflation at 4% a year. In addition to using the warehouse, the proposal envisages an investment in plant and equipment of $1.68 million. This could be depreciated for tax purposes straight-line over 10 years. However, Pigpen expects to terminate the project at the end of 8 years and to resell the plant and equipment in year 8 for $560,000. Finally, the project requires an immediate investment in working capital of $430,000. Thereafter, working capital is forecasted to be 10% of sales in each of years 1 through 7. Year 1 sales of hog feed are expected to be $5.80 million, and thereafter, sales are forecasted to grow by 5% a year, slightly faster…

I need help with questions 4/5/6A   Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a five-year period. His annual pay raises are determined by his division’s return on investment (ROI), which has exceeded 21% each of the last three years. He has computed the cost and revenue estimates for each product as follows:      Product A Product B Initial investment:           Cost of equipment (zero salvage value) $ 210,000   $ 420,000 Annual revenues and costs:           Sales revenues $ 290,000   $ 390,000 Variable expenses $ 136,000   $ 186,000 Depreciation expense $ 42,000   $ 84,000 Fixed out-of-pocket operating costs $ 74,000   $ 54,000      The company’s discount rate is 19%.    Click here to view Exhibit 8B-1 and Exhibit 8B-2, to determine the appropriate discount factor using tables.      Required: 1. Calculate the payback period for each product. (Round your answers to 2 decimal places.)…

/1 View Policies Current Attempt in Progress port Presented below are data relating to labor for Verde Appliance Repair Shop. Repair-technicians' wages $132,600 40,800 Fringe benefits 66,300 Overhead The desired profit margin per hour is $23. The material loading charge is 60% of invoice cost. Verde estimates that 5,100 labor hours will be worked next year. If Verde repairs a dishwasher that takes 1.5 hours to repair and uses parts of $60, compute the bill for the job. Total cost 8:50 PM 4 ) 11/18/2019 hp Su prt sc delete home end pg up

EXERCISE 6–4 Basic Segmented Income Statement LO6-4 Roval Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow $7.50 Selling price per unit Variable expenses per unit $6.00 $2.40 $5.25 $45,000 $21,000 Traceable fixed expenses per year

Problem 9-19 Project Evaluation (LO2, LO3) United Pigpen is considering a proposal to manufacture high-protein hog feed. The project would make use of an existing warehouse, which is currently rented out to a neighboring firm. The next year's rental charge on the warehouse is $130,000, and thereafter, the rent is expected to grow in line with inflation at 4% a year. In addition to using the warehouse, the proposal envisages an investment in plant and equipment of $1.38 million. This could be depreciated for tax purposes straight-line over 10 years. However, Pigpen expects to terminate the project at the end of 8 years and to resell the plant and equipment in year 8 for $460,000. Finally, the project requires an immediate investment in working capital of $380,000. Thereafter, working capital is forecasted to be 10% of sales in each of years 1 through 7. Year 1 sales of hog feed are expected to be $4.80 million, and thereafter, sales are forecasted to grow by 5% a year, slightly faster…

Chapter 6 RUN LIKE THE WIND PROFIT GOAL Please solve and explain the following problem "Run Like The Wind sells ceiling fans.  Target profit for the year is $470,000.  If each fans contribution margin is $32 and fixed costs total $222,640, what is the number of fans that must be sold to meet the company's goal?"

ACC 123 Problem Set No. 1 Directions: Show your solution clearly and systematically. s The Rolling Creek Textile Mill produces denim. The fixed monthly cost is $21,000, and the variable cost per yard of denim is $0.45. The mill sells a yard of denim for $1.30. For a monthly volume of 18,000 yards of denim, determine the total cost, total revenue, and profit. Determine the annual break-even volume for the Rolling Creek Textile Mill. Graphically illustrate the break-even volume for the Rolling Creek Textile Mill determined in Problem 1. The General Store at State University is an auxiliary bookstore located near the dormitories that sells academic supplies, toiletries, sweatshirts and T-shirts, magazines, packaged food items, and canned soft drinks and fruit drinks. The manager of the store has noticed that several pizza delivery services near campus make frequent deliveries. The manager is therefore considering selling pizza at the store. She could buy premade frozen pizzas and heat…

Problem 9-19 Project Evaluation (LO2, LO3) United Pigpen is considering a proposal to manufacture high-protein hog feed. The project would require use of an existing warehouse, which is currently rented out to a neighboring firm. The next year's rental charge on the warehouse is $185,000, and thereafter, the rent is expected to grow in line with Inflation at 4% a year. In addition to using the warehouse, the proposal envisages an Investment in plant and equipment of $1.71 million. This could be depreciated for tax purposes straight-line over 10 years. However, Pigpen expects to terminate the project at the end of 8 years and to resell the plant and equipment in year 8 for $570,000. Finally, the project requires an immediate Investment in working capital of $435,000. Thereafter, working capital is forecasted to be 10% of sales In each of years 1 through 7. Working capital will be run down to zero in year 8 when the project shuts down. Year 1 sales of hog feed are expected to be $5.90…

Problem 9-19 Project Evaluation (LO2, LO3) United Pigpen is considering a proposal to manufacture high-protein hog feed. The project would require use of an existing warehouse, which is currently rented out to a neighboring firm. The next year's rental charge on the warehouse is $185,000, and thereafter, the rent is expected to grow in line with inflation at 4% a year. In addition to using the warehouse, the proposal envisages an Investment in plant and equipment of $1.71 million. This could be depreciated for tax purposes straight-line over 10 years. However, Pigpen expects to terminate the project at the end of 8 years and to resell the plant and equipment in year 8 for $570,000. Finally, the project requires an immediate Investment in working capital of $435,000. Thereafter, working capital is forecasted to be 10% of sales In each of years 1 through 7. Working capital will be run down to zero in year 8 when the project shuts down. Year 1 sales of hog feed are expected to be $5.90…

QUESTION 9 You plan on starting a lawn mowing business by investing $700 of your own money and purchase $500 of equipment. You plan to work 260 hours per month and charge your customers $22 per hour. Your anticipated costs include: Depreciation Advertising Gas Assistant's Wages Miscellaneous Expenses $25.00 per month $26.00 per month $1.20 per hour $8.00 per hour $20.00 per month Calculate your Variable cost per hour on the budgeted contribution margin income statement.

Question 8 of 17 A business has the capacity to manufacture 720 electronic components per annum that it sells for $500 each. The variable costs are $270 per component and the fixed costs are $102,000 per year. a. What quantity should it sell in a year to have a net income of $41,000 per year? Round up to the next whole number b. What is the net income per year at capacity? SAVE PROGRESS SUBMIT AS

Question 17             You are contemplating leaving your full-time employment to concentrate your ability on the marketing of a new low-energy portable heater. You have spoken to a group of manufacturers of similar product, and you have produced the following data based upon the production of 1200 heaters in the six months to December 31, 2021.                                                                                       R                                 R Unit selling price                                                                                            160 Less: Direct materials                                                 50            Direct labour                                                    30 Fixed Overheads: Admin                                                                         4.00 Rent                                                                            7.50 Rates…

QUESTION 2 SAB Manufacturing Company produces bicycle parts in batches. The demand for the parts is 200 units per month. The holding cost per unit per year is $3. The set-up cost is $50 per production run. The parts can be produced at the rate of 40 unit per day and the daily demand is 9.6 units. The company operates 250 days in a year. Determine: a. Optimal quantity for each production run b. Length of each production cycle c. Number of set-ups per year. d. Annual set-up cost e. Annual carrying cost, and f. Maximum inventory level

QUESTION 23 An automobile company needs to decide of outsourcing shafts or producing shafts in the company. If the company outsource the shafts, the shafts could be purchased ein the first year for $30 per shaft but the price of shaft for the subsequent years will increase by 5% from the previous year. If the company decide to produce the shafts, an investment of $3,000,000 needed for equipment and upgrades. The total annual cost associated with production (e.g. fixed, variable, labor and material cost) is $1,000,000. The annual demand is 40,000 shafts for the next 7 years. The new equipment purchased will have a salvage value of $450,000 at the end of year 7. If the company interest rate is 5%, which of the following statements is correct? O The company should outsource the shafts and the annual equivalent savings is $91,564 O The company should produce the shafts and the annual equivalent savings is $91,564 O The company should outsource the shafts since the AEC per unit from…

Activity Frame $1,551.22 $1,163.42 $1,318.54 $1,706.34 Fox spent $1,500 on a marketing study to estimate the number of units that it can sell each year. What should Fox do to take this information into account? The company does not need to do anything with the cost of the marketing study because the marketing study is a sunk cost. Increase the NPV of the project $1,500. Increase the amount of the initial investment by $1,500.

2: Homework Question 5 of 9 - / 1 View Policies Current Attempt in Progress Cullumber's Candles will be producing a new line of dripless candles in the coming years and has the choice of producing the candles in a large factory with a small number of workers or a small factory with a large number of workers. Each candle will be sold for $10. If the large factory is chosen, the cost per unit to produce each candle will be $3.60. The cost per unit will be $7.50 in the small factory. The large factory would have fixed cash costs of $2.30 million and a depreciation expense of $300,000 per year, while those expenses would be $470,000 and $100,000, respectively, in the small factory. Calculate the pretax operating cash flow break-even point for both factory choices for Cullumber's Candles. (Round answers to nearest whole units e.g. 152.) retax operating cash flow breakeven point for the large factory is units and for the small factory is eTextbook and Media Save for Later Attempts: 0 of 3…

EXERCISE #10 Fad Enterprise has 23,000 units of demand last year. This year the top management expects the need will be acreased by 25%. Therefore, the production lines must be working 3-shift per day in 6 days a week. To meet the demand, the operations only shut down a week in entire year. Presently the production assembly system produces 12 units per hour. The enterprise kept the excess units about $0.50 per unit. The delivery takes 6 working days with a cost of $10 per order. The enterprise keeps supplies approximately 2 months of production. (a) Find the optimum value of ordering. (b) The size of Kanban oduction assembly cess units must be 000 per order. The roximately 30% of (c) The amount of design capacity for a year business operation.