If the present worth of costs exceeds that of the benefits, PW for the project is: Select one: a. always an integer b. equal to zero C. positive d. negative
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- 1. Compute the contribution margin per unit if the total fixed cost is P400, 000 and breakeven point is 4,000 units. a. P25 b. P100 c. P2, 500 d. P1, 000 2. What is the contribution margin ratio when the fixed costs are P13, 000, 000, the sales are P25, 000, 000, and the variable costs are P10, 000, 0000? a. 40% b. 48% c. 60% d. 52% 3. Which of the following is the value that we need to consider that will contribute towards covering fixed cost and providing for profit?* a. contribution margin b. net margin c. gross profit d. gross marginA plant has annual fixed costs of $100,000. Variable costs are $40,000 per year at 80% production capacity; annual revenues are $70,000 at this capacity. The selling price per unit is $35. a. At 80% capacity, what are annual sales in number of units? b. What is the variable cost per unit? c. What is the breakeven quantity?Q.(i) . Selling Price :Rs. 12 Per UnitVariable Cost : 2/3 of SPFixed Cost :Rs. 40,000You are required to calculate:(a) Sales to earn profit of Rs. 8000.(b) Also show the BEPs in Breakeven chart. Q.(ii). Use the following information and explain that how the reduction in selling pricewould affect the MOS?Particulars Rs.Selling price per unit 40Material per unit 12Labour per unit. 8Variable Overheads per unit 4Total Fixed cost is Rs. 8, 000. Full capacity of the Plant is 5, 000 units.Reduced selling price is Rs. 32 per unit.
- Q4: A project is considered to last for 10 weeks with a budget of $1,600,000. The cost behaviour of the project in its first 6 months is exhibited in the following table. The project progress is considered linearly proportional to time. Cost behaviour of the project in Q4: Cost data WK6 WKI WK2 WK3 WK4 WK5 Earned value to date ($) 150,000 300,000 480,000 900,000 1,200,000 1,480,000 Actual cost to date ($) 200,000 350,000 600,000 820,000 1,120,000 1,520,0000 a. Use the EV formulas to evaluate the project's progress performance over the six weeks.At what output level is variable costs per unit at a minimum? Supporting Materials Steel Costs $ per ton MC ATC $175 AVC $115 $70 4,000 9,000 11,000 16,500 Steel Outp ut (in tons)Question Table Q4 shows information for systems A and B. By using the information provided determine: Table Q4 Information on System A & B System A Output X1 unit per day Dollar spent Y1 per unit $ spent for day Kl per day Other cost Z1 per day System B Output X2 unit per day Expenditure Y2 per unit $ spent for day K2 per day Other cost Z2 per day a. Assuming that system A is stable, determine the following: i. The 100% output of system A, if the output per maximum is noted to be at 60%. ii. The unit of output considering losses, if the output of system A is 30% higher than the one given in Table above and the output per unit effective capacity is 0.65. iii. From (i), determine the new quantity (unit) of the output to reach an additional 20% increment in unit per maximum for system A. iv. The quantity (unit) of the output for A that should be able to be collected if the efficiency is 80%, the unit of the output is the same as (ii). b. Assuming that both systems are stable and operating…
- Barney need to choose between two equipment for his project. Equipment A: First cost = 200,000.00, Annual Operating Cost = 32,000.00 , Annual Labor Cost = 50,000.00 , Property taxes = 3%, Payroll taxes = 4%, Estimated life = 10 years. Equipment B: First cost = 300,000.00, Annual Operating Cost = 24,000.00 , Annual Labor Cost = 32,000.00 , Property taxes = 3%, Payroll taxes = 4%, Estimated life = 10 years. If the minimum required rate of return is 15%, what is the equivalent uniform annual cost of Equipment B? a. P126,070 b. P124,030 c. P129,850 d. P130,870A cell phone company has a fixed cost of $1,000,000 per month and a variable cost of $22 per month per subscriber. The company charges $33 per month to its cell phone customers. a.What is the annual breakeven point for this company? b. The company currently has 95,000 subscribers and proposes to raise its monthly fees to $39.95, what is the new annual break-even point if the variable cost increases to $25 per customer per month? c.lf 20,000 subscribers will drop their services because of mönthly increase in part (b), will the company still be profitable?Question 4 XYZ Company manufactures and sells plates. Present sales output is 4,000,000 units per year at a selling price of $.70 per unit. Fixed costs are $800,000 per year. Variable costs are $.35 per unit. What is the Contribution Margin for a year? $1,400,000 $800,0000 1,600,000 $400,000