Inspection time for a plant is 10,000 hours per year. The cost of inspection consists of salaries of four inspectors, totaling P60,000. Inspection also used supplies costing P3 per inspection hour. The company has a close to zero defect state and has eliminated the need for any inspection activity. Calculate the nonvalue-added cost of inspection per year. Your answer
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- Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs?Variety Artisans has a bottleneck in their production that occurs within the engraving department. Arjun Naipul, the COO, is considering hiring an extra worker, whose salary will be $45,000 per year, to solve the problem. With this extra worker, the company could produce and sell 3,500 more units per year. Currently, the selling price per unit is $18 and the cost per unit is $5.85. Using the information provided, calculate the annual financial impact of hiring the extra worker.
- A company that manufactures automatic blowdown control valves (for applications where boilers are operated unsupervised for 24 to 36 hours) has fixed cost of $160,000 per year and variable cost of $400 per valve. If the company expects to sell 12,000 valves per year, determine the selling price in order for the company to (a) break even, and (b) make a profit of $400,000 per year.i need to find the average cost per unit? if : the machine to produce the units cost $400,000 the monthly operating and maintenance cost is: $1,000 cost of material and labour is: $60/unit defective unit at a cost: $60/unit nominal production of: 2,800 units/month nominal defect rate: 3% MARR is 10% compounded monthly period of time 5 yearsAmanufacturermakes 7,900,000 memory chips per year. Each chip takes 0.4minutes of direct labor at the rate of $8 per hour. The overhead costs are estimated at $11 per direct labor hour. A new process will reduce the unit production time by 0.01 minutes. If the overhead cost will be reduced by $5.50 for each hour by which total direct hours are reduced, what is the maximum amount you will pay for the new process? Assume that the new process must pay for itself by the end of the first year. (a) $25,017 (b) $1,066,500 (c) $10,533 (d) $17,775 (e) $711,000.
- Q-Constructions has tasked you to investigate the number of construction projects per year for which the company would need to break-even and make a profit of $500,000 per year. The average price of a building contract is $700,000 per project. The following are the fixed and variable costs of Q-Constructions in Table 2: Description Cost Office Space 55,000 Professional Staff Salaries 205,000 Insurances 50,000 Machine Maintenance 80,000 Website Management 30,000 On-site workers’ salaries $120,000 per project Average Material Cost 60% of the project price per project Table 2: Associated Costs of Q-Constructions Use this information above to complete the requested analyses below. Calculate: The break-even number of projects needed by the company. The income made by the company at break-even. Calculate the new number of projects that need to be completed to maintain a profit of $500,000 per year.Q-Constructions has tasked you to investigate the number of construction projects per year for which the company would need to break-even and make a profit of $500,000 per year. The average price of a building contract is $700,000 per project. The following are the fixed and variable costs of Q-Constructions in Table 2: Description Cost Office Space 55,000 Professional Staff Salaries 205,000 Insurances 50,000 Machine Maintenance 80,000 Website Management 30,000 On-site workers’ salaries $120,000 per project Average Material Cost 60% of the project price per project Table 2: Associated Costs of Q-Constructions Use this information above to complete the requested analyses below. Calculate: The break-even number of projects needed by the company. The income made by the company at break-even. Show all working out including the modelling and solution steps. Q-Constructions is interested in making a profit per year to ensure the…Q-Constructions has tasked you to investigate the number of construction projects per year for which the company would need to break-even and make a profit of $500,000 per year. The average price of a building contract is $700,000 per project. The following are the fixed and variable costs of Q-Constructions in Table 2: Description Cost Office Space 55,000 Professional Staff Salaries 205,000 Insurances 50,000 Machine Maintenance 80,000 Website Management 30,000 On-site workers’ salaries $120,000 per project Average Material Cost 60% of the project price per project Table 2: Associated Costs of Q-Constructions Use this information above to complete the requested analyses below. A) Calculate: The break-even number of projects needed by the company. The income made by the company at break-even. Show all working out including the modelling and solution steps. B) Q-Constructions is interested in making a profit per year to ensure…
- Q-Constructions has tasked you to investigate the number of construction projects per year for which the company would need to break-even and make a profit of $500,000 per year. The average price of a building contract is $700,000 per project. The following are the fixed and variable costs of Q-Constructions in Table 2: Description Cost Office Space 55,000 Professional Staff Salaries 205,000 Insurances 50,000 Machine Maintenance 80,000 Website Management 30,000 On-site workers’ salaries $120,000 per project Average Material Cost 60% of the project price per project Table 2: Associated Costs of Q-Constructions Use this information above to complete the requested analyses below. Calculate: The break-even number of projects needed by the company. The income made by the company at break-even. Show all working out including the modelling and solution steps. Q-Constructions is interested in making a profit per year to ensure the…Q-Constructions has tasked you to investigate the number of construction projects per year for which the company would need to break-even and make a profit of $500,000 per year. The average price of a building contract is $700,000 per project. The following are the fixed and variable costs of Q-Constructions in Table 2: Description Cost Office Space 55,000 Professional Staff Salaries 205,000 Insurances 50,000 Machine Maintenance 80,000 Website Management 30,000 On-site workers’ salaries $120,000 per project Average Material Cost 60% of the project price per project Table 2: Associated Costs of Q-Constructions a. Q-Constructions workers’ have approached the building union and been informed they could be paid a higher salary and want their salaries to be determined based on a percentage of the project price. The company has reviewed their historical records on the number of projects per year and has made the decision to respect the…A Civil Engineer produces a certain construction material at a labor cost of P16.20 per piece, materials cost of P38.50 per piece and variable cost of P7.40 per piece. The fixed charges on the business is P100,000 a month. If the product is sold for P95.00 each, how many pieces must be made and sold each month to break even?