1.A new product, an automated crepe maker, is being introduced ät selling price of RM59 per unit, management projects sales of 70,000 maker as a new product would require an investment of RM500,00 investment is 12%. The target cost per crepe maker is closest to: A. RM59.00 B RM66.08
Q: E9-2 (Algo) Computing and Recording a Basket Purchase and Straight-Line Depreciation [LO 9-2, LO…
A: Lets understand the basics.Depreciation is a reduction in value of asset due to wear and tear,…
Q: On January 1, year 1, Ontario Company sold a new machine to Canada Company for $70,000. Canada…
A: The installment amount is computed using the following formula: -
Q: Vaughn Inc. had beginning inventory of $11,160 at cost and $18,600 at retail. Net purchases were…
A: LIFO is last in first out method means inventory bought last is sold first.Inventory means the…
Q: Lewis Company reports the following fixed budget and actual results for May. Prepare a flexible…
A: Variances is the amount of difference between the actual values and the values estimated by the…
Q: Cullumber Toys' management is considering eliminating product A, which has been showing a loss for…
A: Differential analysis is a management accounting technique in which we assess only the changes in…
Q: On June 13, the board of directors of Siewert Inc. declared a 2-for-1 stock split on its 60 million,…
A: The stock split is the effect on the shares that would not affect the overall capital of the…
Q: Zeidler Company bought a building and the land on which the building is located for a total cash…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: Explain the ABC inventory management system and the just-in-time inventory managementsystem
A: The objective of this question is to understand two different inventory management systems: ABC and…
Q: Prepare a CVP Income Statement for 2025 based on management's estimates. (Round per unit answers to…
A: The contribution margin is calculated as the difference between the sales and variable costs. The…
Q: The machining division of Sheridan International has a capacity of 2,130 units. Its sales and cost…
A: Sales200 $ 75.00 $ 15,000Less: Variable cost200 $ 24.00 $ 4,800Contribution margin lost200 $…
Q: e following information is available from the accounting records of Florida Laser Tech.. Sales at…
A: Break even point :— It is the point of production where total cost is equal to total revenue. At…
Q: Beachwood Classics makes furniture for children. It has received a special order for 1,500 units…
A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is one of the Important Cost…
Q: is unmarried, filing head of household with the following income for the year. Wages $32,275…
A: Gross income is total profits or revenue before deductions, whereas adjusted income is generally…
Q: Sorrento Products uses a job costing accounting system for its manufacturing costs. A predetermined…
A: The estimated overhead cost divided by the estimated units to be allocated gives us the…
Q: On August 1, Pure Joy Corporation (a U.S.-based importer) placed an order to purchase merchandise…
A: The objective of the question is to prepare journal entries for the foreign currency forward…
Q: Sheryl's Shipping had sales last year of $15,000. The cost of goods sold was $7,500, general and…
A: On statement of cash flow, the cash flow is reported under three activities that are operating,…
Q: akefield Hospital’s accounting records disclosed the following information: Cost of property and…
A: It is the main operating fund of state and local government used to record the departmental…
Q: Mario's Pizza has been suffering financial difficulties due to new local competition. They have…
A: A capital receipt is a type of fiscal sale that involves the damage or flux of finances or…
Q: Date Account Titles and Explanation Debit Credit
A: Journal is detailed record that documents all financial transactions of a business in chronological…
Q: Richard's son, David (age 16), has earned income of $5,000 and unearned income of $1,100 for 2023.…
A: The income of a child whose age is under 18 as per the IRS is required to be shown and determined by…
Q: Isabella Canton is considering taking a part-time job at a local clothing store. She loves the store…
A: Relevant costs are future-oriented and play an important role in decision-making since they give…
Q: Last year a company had sales of $400,000, a turnover of 2.4, and a return on investment of 36%. The…
A: Investment turnover = Investment turnover measures the efficiency of a company's assets to generate…
Q: Monty Corporation has 755,000 shares outstanding. The shares have an average cost of $43 per share.…
A: Journal entries are the primary reporting of the business transactions in the books of accounts.…
Q: A company purchases 20 units of Product X for $10 each and then 30 units for $12 each. The company…
A: Cost of goods sold is the amount of money incurred by the entity on the making of the goods sold in…
Q: Required information Miami Solar manufactures solar panels for industrial use. The company budgets…
A: MANUFACTURING OH BUDGETManufacturing OH Budget is the Management Estimation of Manufacturing OH Cost…
Q: Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are produced in…
A: The objective of the question is to calculate the total activity cost and activity cost per unit for…
Q: An alphabetical list of Ivanhoe Company adjusted accounts at its fiscal year end, August 31, 2024,…
A: The financial statements of the business include income statement, statement of owners' equity and…
Q: Based on past experience, Maas Corp. (a U.S. -based company) expects to purchase raw materials from…
A: The rate at which one country’s currency can be converted into another country’s currency referred…
Q: The following salaried employees of Mountain Stone Brewery in Fort Collins, Colorado, are paid…
A: Answer:-Since the percentage approach has not wage or allowance caps, the employer can utilize it in…
Q: Crane Toys Company has a balance in inventory of $634000 at the beginning of the month. During the…
A: Ending inventory is the amount of inventory that an entity has on hand at the end of the period. It…
Q: ventory 2,580 CDs with a unit cost of $7. During March, Novak made the following purchases of CDs.…
A: Lets understand the basics.Cost of goods available for sale is a total of total cost of goods…
Q: Current Attempt in Progress Riverbed Corp. was experiencing cash flow problems and was unable to pay…
A: Journal is a record of financial transactions in chronological order. It contain details like dates,…
Q: Trey has two dependents, his c
A: Child tax credit 2023 (taxes filed in 2024)For 2023, the child tax credit is worth $2,000 per…
Q: Journal entry worksheet
A: Adjusting entries are journal entries that are passed at the end of accounting period to adjust the…
Q: The following are methods in calculating the capital Double-Declining Method Quarterly-Deduction…
A: SLD method depreciates the asset from the purchase price to the residual value in even amounts over…
Q: SkyChefs, Incorporated, prepares in-flight meals for a number of major airlines. One of the…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Review each transaction below and indicate whether you agree or disagree with how the bookkeeper…
A: Journal entry is an art of recording, summarizing and classifying the business transactions into…
Q: A company has the following at the end of the year: Inventory Quantity Purchase Cost Market Value…
A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…
Q: For Year Ended December 31 Direct materials Direct labor Department manager salaries Supplies used…
A: Responsibility accounting is one of the branches of modern costing systems that majorly applies to…
Q: Prior to recording the following, Elite Electronics, Incorporated, had a credit balance of $3,000 in…
A: Journal entries are the foremost reporting of the business transactions in the books of accounts,…
Q: Identify which of the following is/are types of distributions of Mutual Fund Trust: a. All of the…
A: a) All of the Choices: This statement is not correct because not all options are valid types of…
Q: The following information is available for Trinkle Company for the month of June: 1. The unadjusted…
A: Lets understand the basics.Bank reconciliation: It is a statement drawn up by the business to verify…
Q: 1/1 1/20 7/25 10/20 1 Beginning Inventory Purchase Purchase Purchase 2 Units 130 650 130 390 1,300…
A: FIFO means the item which is received first will be sold out first. LIFO means the item which is…
Q: Padre holds 100 percent of the outstanding shares of Sonora. On January 1, 2019, Padre transferred…
A: Requierement of the question : Prepare worksheet entries related to consolidation of the…
Q: On December 31, 2023, Berclair Incorporated had 240 million shares of common stock and 5 million…
A: Earning per Share ie EPS - It is the ratio between a company's earning and its number of outstanding…
Q: Zira Company reports the following production budget for the next four months. Each finished unit…
A: Direct Material Budget :— This budget is prepared to estimate the number of units and cost of…
Q: Park Co. is considering an investment that requires immediate payment of $27,000 and provides…
A: Payback period can be defined as the time period in which the investment made for the project can…
Q: What amount of gain or loss does James recognize if he sells the stock for $5,256 and $4234…
A: Stock gain or loss is the difference between the selling price of a stock and its purchase price. If…
Q: Question 6 A bond with a face value of $200,000 and a quoted price of 102 has a selling price of…
A: BOND Bond is a Financial Security which is generally Issued by the Corporations, Government &…
Q: The Albertville City Council decided to pool the investments of its General Fund with Albertville…
A: Interest is of $ 86,000 i.e. interest collected of $ 54,000 and interest accrued of $ 32,000.…
Step by step
Solved in 3 steps with 2 images
- NPV. Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS system: annual sales of 46,000 units at $17 a unit, production costs at 37% of sales price, annual fixed costs for production at $200,000. The company tax rate is 40%. What is the annual operating cash flow of the new GPS system? Should Grady Precision Measurement Tools add the GPS system to its set of products? The initial investment is $1,400,000 for manufacturing equipment, which will be depreciated over six years (straight line) and will be sold at the end of five years for $380,000. The cost of capital is 10%. What is the annual operating cash flow of the new GPS system? (Round to the nearest dollar.)2. A new copier company plans to produce one model of copier. The copiers will sell for $820 each. The annual fixed costs of operation are $5,600,000 and the variable cost is $210 per unit. a. Assuming that they can sell everything they produce at this price, compute the breakeven quantity QBEP. b. If the company actually produces 11,000 copiers the first year, what will the profit/loss be? c. Include a fully-labeled breakeven chart illustrating the problem. 3. Fixed and variable cost for three potential facility locations are as shown below. Fixed cost Variable cost Location per year $240,000 $100,000 $150,000 per unit $15 $30 $20 a. Plot the total cost lines for these four locations on a single cost-volume graph. b. If expected output is to be 12,000 units per year, which location would provide the lowest cost? c. Identify the range of output over which each location alternative would be preferred (lowest cost). Compute the relevant crossover points, and clearly indicate your…Coore Manufacturing has the following two possible projects. The required return is 10 percent. Project Y -$ 27,900 13,900 Project Z -$ 59,000 17,500 12,300 30,000 14,700 10,300 Year 0 1 2 3 4 15,500 28,000 a. What is the profitability index for each project? Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 3- b. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 3. c. Which, if either, of the projects should the company accept? a. Project Y Project Z b. Project Y Project Z c. Accept project
- The purchasing price for a dye press is $30,000. It is expected to provide labour cost savings of $5,000 in year 1. The savings are expected to increase linearly by X$ each year for seven years. Find the dollar value of X such that the purchase price is justified by the labour savings at MARR = 5%.The solution is with $1 of which of the following?65.8067.8069.8071.80None of the aboveThe X Division of NUBD Products Co. is considering an investment in a new project. The project has an estimated cost of P1,000,000. If NUBD Products Co. has a target rate of return of 12%, how large does the return on investment on this project need to be to generate P180,000 of residual income?The following table presents sales forecasts for Golden Gelt Giftware. The unit price is $30. The unit cost of the giftware is $25. Year Unit Sales 20, 000 2. 31, 200 14, 900 5, 700 Thereafter It is expected that net working capital will amount to 25% of sales in the following year. For example, the store will need an initial (year 0) investment in working capital of 0.25 x 20,000 x $30 = $150,000. Plant and equipment necessary to establish the giftware business will require an additional investment of $197,000. This investment will be depreciated in an asset class with a CCA rate of 25%. We will assume that the firm has other assets in this asset class. After 4 years, the equipment will have an economic and book value of zero. The firm's tax rate is 35%. The discount rate is 10%. What is the net present value of the project? (Round your answer to the nearest whole dollar amount.) NPV $
- A manufacturer of woodworking tools wants to introduce a new power screwdriver. To compete effectively, the screwdriver cannot be priced at more than ₱20. The company requires a 35% rate of return on investment on all new products. In order to produce and sell 40,000 screwdrivers each year, the company will need to make an investment of ₱1,200,000. The target cost per screwdriver would be: a. ₱15.50 b. ₱10.00 c. ₱9.50 d. ₱12.50 e. ₱30.00 f. ₱1.50An investment of $80,000 today is expected to give rise to an annual contribution of $45,000. This is based on selling one product, a volume of 15,000 units, selling price of $16.50 and variable cost of $12. Annual fixed cost of $11,000 will be incurred for the next four years; the discount rate is 10%.Required:(a) Calculate the NPV of this investment. (b) Calculate the sensitivity of your calculation to the discount rate.A manufacturer of woodworking tools wants to introduce a new power screwdriver. To compete effectively, the screwdriver cannot be priced at more than ₱14. The company requires a 15% rate of return on investment on all new products. In order to produce and sell 80,000 screwdrivers each year, the company will need to make an investment of ₱800,000. The target cost per screwdriver would be: a. ₱15.50 b. ₱1.50 c. ₱14.00 d. ₱12.50
- An equipment with a cost of P 100 000 is expected to generate returns of P 90 000; P 60 000 and P 50 000 for the first, second and third year, respectively. Using a discount rate of 12%, what is the NPV of the project? а. Р 60 121 b. Р 79 341 c. P 83 431 d. P 63 778B) Pakar & Son Sdn Bhd is looking to invest in a new project, with a project life of 4 years. The project involves a new manufacturing equipment that makes inline skate wheels. The marketing department estimates a total sale of 6,000 units each year at a price of RM300 per unit. Variable cost is about 40% from the selling price. Fixed cost is estimated at RM450,000 per year. The new equipment will cost RM1,500,000. The machine will be depreciated to zero over its 6-year economic life using the straight-line method. At the end of year 4, the equipment can be sold at RM650,000. The project also requires an investment of RM525,000 in net working capital at the start and it will be recovered in full at the end of the project's life. The corporate tax rate is 35 percent. The required rate of return for the project is 25%. i) What is the initial cost of this project? ii) Determine the annual cash flow of this project from year 1 to year 4.The most likely outcomes for a particular project are estimated as follows: Unit price Variable cost $ 49 21 $309, 000 29, 200 uni ts per year Fixed cost Expected sales However, you recognize that some of these estimates are subject to error. Suppose that each variable may turn out to be either 10% higher or 10% lower than the initial estimate. The project will last for 13 years and requires an initial investment of $0.99 million, which will be depreciated straight-line over the project life to a final value of zero. The firm's tax rate is 35% and the required rate of return is 17%. What is project NPV in the "best case" scenario, that is, assuming all variables take on the best possible value? (Round your answer to the nearest whole dollar amount.) NPV in the "best case" scenario 1961296 What about the "worst case" scenario? (Use the minus sign for negative values. Round your answer to the nearest whole dollar amount.) NPV in the "worst case" scenario -148345