The following pair of assets differ only in the MARR. The problem asks you to determine the effect of this difference on the economic life and to explain the result. All assets decline in value by 20 percent year. Installation costs are zero for all assets. Further data concerning the four pairs of assets are given in the table that follows. Initial Operating Cost Asset First Cost A $125,000 $30.000 B $125,000 $30,000 a. Determine the economic lives for assets A and B. Rate of Operating Cost Increase 13.5%/year 13.5%/year MARR 5% 25%
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- The following are data from a production, calculate; The Break-even point in terms of sales value and in . The production demand is at 20,000 units. What is the cw1ent production profit? If the management decides to lower dow11its selling price by 50% given the same demand, will this be a sound decision? Justify. Monthly Fixed Factory Overhead Cost = P600,000 Monthly Fixed Selling Overhead Cost = Pl20,000 Va1iable Manufacturing Cost per Unit = P220 Va1iable Selling Cost per Unit = P30 Variable Distribution Cost per Units = P50 Selling Price per limit = P400Please solve in 30 min i will give you a upvote PROBLEM 2 Karim Inc. calculated the annual cost of owning an asset as follows. EUAC Annual EUAC Replacement Capital Repair Repair Year Costs Costs Costs $1,400 $1,100 1 2 $450 $200 3 $900 $600 $350 4 $800 $800 $400 $700 $1,000 $600 $1,300 $500 $1,600 $450 $600 7 $750 a. When should the company replace the equipment? b. If Karim Inc currently replaces its equipment every year to avoid increasing annual repair costs, how much can the company save annually?A Company manufactures and sells one product. The product has the following cost and revenue data: Selling price Per Unit (AED) 70 Variable cost Per Unit (AED) 30 Total fixed expenses per month are as follows: Expenses types AED Advertising Rent Heating 263,069 100,000 100,000 The company produced and sold 10,000 units during the month and had no beginning or ending inventories. a. What is the break-even value in Dirhams?
- A Company manufactures and sells one product. The product has the following cost and revenue data: Selling price Per Unit (AED) Variable cost Per Unit (AED) Rent 70 Total fixed expenses per month are as follows: Expenses types AED Advertising Heating 30 457,816 100,000 100,000 The company produced and sold 10,000 units during the month and had no beginning or ending inventories. a. What is the break-even value in Dirhams?13.12 You work for Bellevue Window Products. While performing an analysis for a new window prod- uct, you found a report from last year that pro- vided the following information regarding the manufacture of a similar product: annual produc- tion rate T 40,000 units; selling price = $70 per unit; fixed production cost = $240,000 per year; variable production cost = $1,700,000 per year; variable selling expenses = $96,000 per year. As a first-cut, you decide to use this information to estimate (a) the breakeven production rate per year, (b) the company's profit last year, and (c) the annual production rate that would generate a profit of $1,000,000 per year. What are your estimates?2. A company is planning to install a new automated concrete block making machine. Four different brands are available. The related cost information for these four brands are as follows Initial investment Useful life 5 Brand P1 P2 P3 P4 $24,000 $30,400 $49,600 $52,000 5 5 5 (years) Annual expenses Power $2,720 $2,720 $4,800 $5,040 labor $26,400 $24,000 $16,800 $14,800 Maintenance $1600 $1,800 $2,600 $3,000 Insurance $480 $608 $992 $1040 Percent of nondetective 95% 92% 96% 91% items Assume that each brand has the same capacity 120,000 units per year and has no market value at the end of useful life. Which brand should be selected if all non-defective units can be sold at a selling price of $0.875 per unit by finding Present worth, Annual worth and Future worth? Considering MARR 10 Percent, solve by spreadsheet.
- Kontrol paneli > Derslerim > 2020-2021 Güz Dönemi > İŞLETME FAKÜLTESİ > İŞLETME > 2021G-ITB101-1252178 > ITB 101 - Final Exam > ITB 10 曲 Kontrol paneli Site ana sayfası Takvim Nişanlar Tüm dersler Course dashboard Soru 17 The Farley Farm, a dairy company, has total costs of $15,000 and total variable costs of $2,000. The Farley Farm's total fixed costs are Henüz cevaplanmadı 4 üzerinden Lütfen birini seçin: işaretlenmiş O A. indeterminate because the firm's output level is not known. P Soruyu işaretle O B. SO O C$ 15000 O D.$ 13000 O E$ 17000 ÖNCEKİ SAYFA SONRAKİ SAYFA O Aramak için buraya yazınPhysical Units (pennants) 1,050 Work in process, November 1ª Started during November ? Good units completed and transferred out during November 8,900 Normal spoilage Abnormal spoilage 120 40 1,800 Work in process, November 30b Total costs added during November a Degree of completion: direct materials, 100%; conversion costs, 50%. bDegree of completion: direct materials, 100%; conversion costs, 15%. Direct Conversion Costs Materials $1,032 $740 $12,000 $27,250 Flow of Production Completed and transferred out during current period Normal spoilage Abnormal spoilage Work in process, ending Work done to date Equivalent Units Direct Conversion Materials Costs 8,900 120 40 1,800 10,860 8,900 120 40 270 9,330company is planned to install new automated plastic molding press. Four different presses are available as follows: Press 1 Press 2 Press 3 Press 4 Capital Investment $24,000 $30,000 $49,000 $52,000 Useful Life (year) 5 5 5 5 Annual Expenses Power ($) Labor ($) Maintenance ($) Tax & Insurance ($) 2,720 26,400 1,600 480 2,720 24,000 1,800 608 4,800 16,800 2,600 992 4,800 14,800 2,000 1,040 Assume that each press has the same output capacity (120,000 units per year) and all units can be sold (the selling price is $0.375 per unit. Additional capital invested is expected to earn at least 10%. a) Sketch Cash Flow Diagram for the four choices b) Which press should be chosen (use Present Worth PW method?
- 3. The annual worth method An office supply company has purchased a light duty delivery truck for $15,000. It is anticipated that the purchase of the truck will increase the company’s revenue by $10,000 annually, whereas the associated operating expenses are expected to be $3,000 per year. The truck’s market value is expected to decrease by $2,500 each year it is in service. If the company plans to keep the truck for only 2 years, what is the annual worth of this investment? The MARR = 18% per yearA university is trying to determine how much it should charge for tickets to basketball games to help offset the expenses of the new arena. The cost to build the arena including labor, materials. e tc. was $92 million. Each year the maintenance cost is expected to increase by 5% as the building gets older. 1l1e maintenance cost for the first year is $150.000. Utilities arc expected to average about $200.000 per year and labor costs $300,000. The average attendance at basketball games over the year is expected to be J00.000 people (or 100.000 tickets sold to events). Assuming the arena has no other source of income besides regular ticket sales (not including student tickets) for basketball games, what should the university charge so that it can recover at least a 6% cost of borrowing on its investment? ll1c university expects the arena to be used for 40 years and 10 have no appreciable salvage value.101 Use the following information to answer the question which immediately follows Y = 2,000, GT-200, Cd=400 +0.9(Y-T) - 600r, 1200-80r, L-0.5Y 500, M-5000, P-7.35, n² = 0.02 What is the value of r? Select one a 0.58 Ob. 0.45 OC 0.62 Od 0.38 13