In one of the tanker bearings, "Al-Quwaish" exploited the energy of machinery and equipment at 85% and the net monthly sales value of 8000 dinars. The following amounts were disbursed in operational operations, 2500 dinars wages of primary materials, insurance prices 300 dinars, loans 250 dinars, administrative expenses 200 dinars, 500 dinars, marketing expenses 130 dinars, industrial expenses 130 dinars Calculate Miley 1. Fixed costs 2 - changing costs 3. Sales
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- KrishnaGems Ltd has just installed Equip.-R at a cost of Rs 2,00,000. Themachine has a five yearlife with no residual value. The annual volume ofproduction is estimated at 1,50,000 units, which can be sold at Rs 6 per unit.Annual operating costs are estimated at Rs 2,00,000 (excludingdepreciation) at this output level. Fixed costs are estimated at Rs 3 per unitfor the same level of production. KrishnaGems Ltd has just come acrossanother model called Equip.-S capable of giving the same output at anannual operating cost of Rs 1,80,000 (exclusive of depreciation). There willbe no change in fixed costs. Capital cost of this machine is Rs 2,50,000 andthe estimated life is for 5 years with no residual value.The company has anoffer for sale of Equip.-R at Rs 1,00,000. The cost of dismantling andremoval will be Rs 30,000. As the company has not yet commencedoperations, it wants to sell Machine-R and purchase Equip.-S. Nine GemsLtd will be a zero-tax company, for seven years in view of several…KrishnaGems Ltd has just installed Equip.-R at a cost of Rs 2,00,000. Themachine has a five yearlife with no residual value. The annual volume ofproduction is estimated at 1,50,000 units, which can be sold at Rs 6 per unit.Annual operating costs are estimated at Rs 2,00,000 (excluding depreciation) at this output level. Fixed costs are estimated at Rs 3 per unitfor the same level of production. KrishnaGems Ltd has just come acrossanother model called Equip.-S capable of giving the same output at anannual operating cost of Rs 1,80,000 (exclusive of depreciation). There willbe no change in fixed costs. Capital cost of this machine is Rs 2,50,000 andthe estimated life is for 5 years with no residual value. The company has anoffer for sale of Equip.-R at Rs 1,00,000. The cost of dismantling andremoval will be Rs 30,000. As the company has not yet commencedoperations, it wants to sell Machine-R and purchase Equip.-S. Nine GemsLtd will be a zero-tax company, for seven years in view of…Stelle Technology has a contract to build a network for a customer for a total sales price of €10 million. Th e network will take an estimated three years to build, and total building costs are estimated to be €6 million. Stelle recognizes long-term contract revenue using the percentage-of-completion method and estimates percentage complete based on expenditure incurred as a percentage of total estimated expenditures. 1 . At the end of Year 1, the company had spent €3 million. Total costs to complete are estimated to be another €3 million. How much revenue will Stelle recognize in Year 1? 2 . At the end of Year 2, the company had spent an additional €2.4 million for an accumulated total of €5.4 million. Total costs to complete are estimated to be another €0.6 million. How much revenue will Stelle recognize in Year 2? 3 . At the end of Year 3, the contract is complete. Th e company spent an accumulated total of €6 million. How much revenue will Stelle recognize in Year 3?
- A company uses 1,500 units of Zeron per year. Each unit has an invoice cost of P222, including shipping costs. Because of the volatile nature of Zeron, it costs P860 for liability insurance on each shipment. The costs of carrying the inventory amount to P65 per item per year exclusive of a 20 percent cost of capital. Other order costs amounts to P18 per order. At present, the company orders 250 units at a time. What is the annual cost of the company's current order policy?On average, PT. ABH would order from PT. GDAM 1.000.000 kg Crude Palm Oil (CPO) every month to be used as the raw materials for its production. This amount of CPO is refined and processed to produce cooking oils. The inventory is depleted each month and needs to be reordered. If the carrying cost is IDR 32.000 and the fixed order cost is IDR 4.000.000 (Assume a 360-day year)a. Does PT. ABH already follows an economically advisable strategy?b. If it is further noted that PT.ABH procurement team takes 10 days to place and receive an order and the firm’s production policy requires it to hold 50.000 kg as safety stock to prevent against stockouts. Determine the reorder point that must be seti 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 years
- Ionic Charge is a newly organized manufacturing company that plans to manufacture 60,000 units per year of a new prodect. The following estimates have been made of the company's costs and expenses other than income taxes Fixed Variable per unit Manufacturing costs Direct Materials $25 Direct Labor $15 Manufacturing overhead $500,000 8 Period Costs Selling expenses 2 Admin expenses $300,000 Totals $800,000 $50 A. What should the company establish as the sales price per unit if it sets a target of earning an operating income of $700,000 by producing and selling 60,000 units during the first year of operations.A company produces mineral water. Based on the projected annual sales of 40,000 bottles of mineral water, cost studies have produced the following estimates: Total annual costs (in rupees) Variable cost percentage Material 193,600 100 Labour 90,000 70 Overhead 80,000 64 Administration 30,000 30 The production will be sold through dealers who would receive a commission of 8% of sale price. Management to realize a profit of 10 percent of sales. Required: Calculate Net ProfitFor the year just ended, Lotlot Company had direct costs of P1 Million based on a production set up for the period. If the alternative set up were adopted, direct costs could have been P850,000. In addition, Lotlot fixed costs were P100,000. The incremental costs was P250,000 P150,000 P100,000 P50,000
- This year, Lambert Company will ship 1,500,000 pounds of goods to customers at a cost of $1,200,000. If a customer orders 10,000 pounds and produces $200,000 of revenue( total revenue is $20million), The amount of shipping cost assigned to the customer by using ABC would be a. Unable to be determined. b.$8,000($0.80per pound shipped) c.$24, 000(2% of the shipping cost) d. $12,000(1% of the shipping cost) e. None of theseKPR manufactures 30,000 units of part AQ each year for use on its production line. At this level of activity, the cost per unit for part AQ is: Direct materials . . . . . . . . . . . . . . . . . . . . . Rs 3.60Direct labor . . . . . . . . . . . . . . . . . . . . . . . . 10.00Variable manufacturing overhead . . . . . . . 2.40Fixed manufacturing overhead . . . . . . . . . 9.00Total cost per part . . . . . . . . . . . . . . . . . . . Rs 25.00 An outside supplier has offered to sell 30,000 units of part AQ. each year to KPR for Rs 21 per part. If KPR accepts this offer, the facilities now being used to manufacture part AQ could be rented to another company at an annual rental of Rs 80,000. However, KPR has determined that two-thirds of the fixed manufacturing overhead being applied to part AQ would continue even if part AQ were purchased from the outside supplier. Required Being a finance Manager advice the top management that KPR should manufacture the AQ product internally or they should…A certain factory produces 2000 Ton per year of its product. Th price of one kilogram is 1.8$. The annual direct production cost is 2million $ when the factory works at its whole capacity. Other fixed costs are 7X10^5 b) If the selling price increases by 10% calculate the increase in the net profit at the whole capacity assuming the taxes are 48% of the gross profit.