acme coral paid 5000 php to lease a railcar from the reading railroad under the terms, 1000 php of this payment is refundable if the railcar is returned within two days of signing of lease
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acme coral paid 5000 php to lease a railcar from the reading railroad under the terms, 1000 php of this payment is refundable if the railcar is returned within two days of signing of lease
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- Lulu hypermarket estimates daily demand of 18 kgs for a product. It costs RO 100 to make and receive an order, and it takes 16 workdays to receive it. The annual holding cost is 25 % of purchase price. The price RO 2 per kg. The company is operating 5 days per week, and a total of 210 workdays in one year. What is the minimum annual total holding and ordering cost in RO? Round-up to the nearest integerThe Asian Transmission Co. makes and sell automotive parts. Present sales volume is 50,000 units a year and selling price is P50.00 per unit. Fixed expenses is P180,000.00 per year and variable cost per unit is P35.00. What is the total profit / loss for the year if only 10,000 are sold? a. P30k b. P30k c. P70k d. P570kABC Corporation manufactures a certain product that sells for P5,000 each. The company’s maximum production capacity is 360 units per year. At present it is able to produce and sell 280 units a year. The cost to manufacture each product is P2,400 and the fixed operating cost per year is P520,000.1. What is the break – even sales volume of the product per year?2. What is the profit per year based on the present production – sales status?3. What is the loss if only 150 units were produced and sold in a year?
- ENGINEERING ECONOMICS DISCOUNT A hardware store purchased a tool of 20,000 pesos per unit. At what price should the tool be sold so that giving a 15% discount will provide them 25% profit? Please show complete solution of your answer.Consider the following data of a company for the year 1999:Sales = Rs. 1,20,000Fixed cost = Rs. 25,000Variable cost = Rs. 45,000Find the BEP.A manufacturing company leases a building for $100,000 per year for its manufacturing facilities. In addition, the machinery in this building is being paid for in installments of $20,000 per year. Each unit of the product produced costs $15 in labor and $10 in materials. The product can be sold for $40. what are the following 1. How many units per year must be sold for the company to breakeven? 2. If 10,000 units per year are sold, what is the annual profit? 3. If the selling price is lowered to $35 per unit, how many units must be sold each year for the company to earn a profit of $60,000 per year? 4. If the labor cost is increased by 10% and materials cost is increased by 5%, the number of units to break even is closest to:
- Five years ago a dam was constructed to impound irrigation water and to provide flood protection for the area below the dam. Last winter a 100-year flood caused extensive damage both to the dam and to the surrounding area. This was not surprising, since the dam was designed for a 50-year flood. The cost to repair the dam now will be $250,000. Damage in the valley below amounts to $750,000. If the spillway is redesigned at a cost of $250,000 and the dam is repaired for another $250,000, the dam may be expected to withstand a 100-year flood without sustaining damage. However, the storage capacity of the dam will not be increased and the probability of damage to the surrounding area below the dam will be unchanged. A second dam can be constructed up the river from the existing dam for $1 million. The capacity of the second dam would be more than adequate to provide the desired flood protection. If the second dam is built, redesign of the existing dam spillway will not be necessary, but…A company has a production capacity of 500 units per month and its fixed costs are P250,000 a month. The variable costs per unit are P1,150 and each unit can be sold for P2,000. Economy measures are instituted to reduce the fixed costs by 10 percent and the variable costs by 20 percent. Determine the old and the new break-even points. What are the old and the new profit at 100 percent capacity?A local car dealer is advertising a standard24-month lease of $1,150 per month for its new XT3000 series sports car. The standard lease requires adown payment of $4,500, plus a $1,000 refundableinitial deposit now. The first lease payment is due atthe beginning of month 1. In addition, the companyoffers a 24-month lease plan that has a single up-frontpayment of $29,500, plus a refundable initial depositof $1,000. Under both options, the initial depositwill be refunded at the end of month 24. Assume aninterest rate of 6% compounded monthly. With thepresent-worth criterion, which option is preferred?
- Investors put up $520,000 to construct a building and purchase all equipment for a new restaurant. The investors expect to earn a minimum return of 10 per cent on their investment. The restaurant is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $1,000 per week in other fixed costs. Variable costs include $1,000 in weekly wages and $600 per week for materials, electricity, etc. The restaurant charges $5 on average per meal. If the restaurant were to shut down, what would losses per week?Jumbo Company uses 1,100 units of an particular item each year. Carrying the item in inventory costs $200 per unit per year. It costs $150 for each order of the chemical. The firm uses the item at a constant rate each year. Calculate the Economic Order Quantity AND Use the data from problem above and assume that Jumbo Company operates 250 days per year. Also assume that its total usage is 1,100 units per year. There is a lead time of 2 days and Jumbo desires to keep a safety stock of 4 units. Calculate the reorder pointWhat can you say about negative and positive gross margin in sensitivity analysis