1. Compute the selling price if the contribution margin percentage is 25% and contribution margin per unit is P25, 000. P100, 000 P62, 500 P75, 000 P6, 250
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- Menkin’s Tools produces low-cost steel tools. One of their most popular tools is a steel wrench that comes in three sizes. Each of the three wrenches is forged in hydraulic presses. Data for the forging presses are given below? FC VC SP A $ 200,000 $ 6.00 $ 20.00 B $ 150,000 $ 4.50 $ 18.00 C $ 275,000 $ 3.25 $ 15.00 What is the breakeven point (in units) for Press A? 10,657 11,111 12,432 14,286 What is the breakeven point (in units) for Press B? 10,657 11,111 12,432 13,346 What is the breakeven point (in units) for Press C? 14,896 18,865 20,960 23,404Two lathes are being considered in the manufacture of certain machine parts. Data is given below, all cost in peso: REQUIRED:a. Determine the number of machine parts/year that could be produced so that 2 lathes will be equally economical ifthe MARR is 18%. Use AWMb. If the number of parts is 10,000 units, which lathe will you recommend? Use RORc. If the number of parts is 10,000 units, which lathe will you recommend? Use PWMA contractor has 50 men of the same capacity. They can complete the work in 30 days, the working day being 8 hours, but the contract expires in 20 days. He decides to put 10 additional men. If all the men get P300 per day for a full or part time day, & if the liquidated damages are P1T for every full or part day he requires over his contract time. How many days will he complete the work with the 10 additional men
- The Philippines Transmission Co. makes and sells certain automotive parts. Present sales volume is 483,000 units a year at a selling price of fifty centavos (P0.50) per unit. Fixed expenses total P80,000 per year. a. What is the present total profit for a year?b. What is the break-even point in pesos per unit?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 = P400n Project A Project B 0 -$7,000 -$5,000 1 -$2,500 -$2,000 2 -$2,000 -$2,000 3 -$1,500 -$2,000 4 -$1,500 -$2,000 5 -$1,500 -$2,000 6 -$1,500 -$2,000 7 - -$2,000 8 - - Suppose projects A and B are mutually exclusive. The required service period is 8 years and comparable equipment will be leased for $3,000 per year payable at the end of each year for the remaining years of the required service period. Which project is a better choice at 15%? Use PW(15%) criterion and show your equation with numbers plugged into factors and your numerical result for each option.
- A process plant making 5000 kg/day of a product selling for $1.75/kg has annual variable production cost of $2M at 100 % capacity and fixed costs of $700,000. What is the fixed cost per kg at the break even point ? If the selling price of the product is increased by 10%, what is the dollar increase in net profit at full capacity if the income tax rate is 35% of the gross earnings?Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year Cash Flow 0 - S1,785,000 1 610,000 2 707,000 3 580,000 4 483,000 All cash flows will occur in Erewhon and are expressed in dollars. In an attempt to improve its economy, the Erewhonian government has declared that all cash flows created by a foreign company are "blocked" and must be reinvested with the government for one year. The reinvestment rate for these funds is 4 percent. If Anderson uses a required return of 11 percent on this project, what are the NPV and IRR of the project?An investment of P 250,000 can be made in a project that will produce a uniform annual revenue of P 192,800 for 5 years and then have a salvage value of 10% of the first cost. Operation and maintenance will be P 72,000 per year. Taxes and insurance will be 4% of the first cost per year. The company expects capital to earn 20% before income taxes. Show whether or not the investment is justified economically using1. ROR method2. payout method
- AMI, Inc., IS Considering the purchase ot a digital camera tor maintenance of design specitfications by teeding digital pictures directiy into an engineering workstation where computer-aided design files can be superimposed over the digital pIctures. Dittferences between the two images canbe noted, and corrections, as appropriate, can then be made by design engineers a. You have been asked by management to determine the PW of the EVA of this equipment, assuming the following estimates: capital investment = $326,000; market value at end of year six=$122,000, annual revenues = $122,000; annual expenses = $8,000; equipment life = 6 years;effective income tax rate = 25%, and after-tax MARR=8% per year. MACRS depreciation will be used with a five-year recovery period.b. Compute the PW of the equipment's ATCFs.A9. calculate the AW and PW of both project A and project BNight Shades. Incorporated, manufactures biotech sunglasses. The variable materials cost is $12.14 per unit, and the variable labor cost is $6.89 per unit. a. What is the variable cost per unit? b. Suppose the company incurs fixed costs of $845,000 during a year in which total production is 210,000 units. What are the total costs for the year? c. If the selling price is $49.99 per unit, does the company break even on a cash basis? If depreciation is $450.000 per year, what is the accounting break-even point? Pls don't copy answer