National Chemical Company manufactures a chemical compound that is sold for $59 per gallon. A new variant of the chemical has been discovered, and if the basic compound were processed into the new variant, the selling price would be $84 per gallon. National expects the market for the new compound variant to be 8,400 gallons initially and determines that processing costs to refine the basic compound into the new variant would be $159,600. Required: a. What would be the effect on total profit if National produces the new compound variant? b. Should National produce the new compound variant? Complete this question by entering your answers in the tabs below. Required A Required B What would be the effect on total profit if National produces the new compound variant? f National produces the new compound, profit will increase Required A Required B >
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- National Chemical Company manufactures a chemical compound that is sold for $53 per gallon. A new variant of the chemical has been discovered, and if the basic compound were processed into the new variant, the selling price would be $87 per gallon. National expects the market for the new compound variant to be 8,700 gallons initially and determines that processing costs to refine the basic compound into the new variant would be $174,000. Required: a. What would be the effect on total profit if National produces the new compound variant? b. Should National produce the new compound variant? Complete this question by entering your answers in the tabs below. Required A Required B What would be the effect on total profit if National produces the new compound variant? If National produces the new compound, profit will byNational Chemical Company manufactures a chemical compound that is sold for $58 per gallon. A new variant of the chemical has been discovered, and if the basic compound were processed into the new variant, the selling price would be $82 per gallon. National expects the market for the new compound variant to be 8,700 gallons initially and determines that processing costs to refine the basi compound into the new variant would be $182,700 Required: a. What would be the effect on total profit if National produces the new compound variant? b. Should National produce the new compound variant? Complete this question by entering your answers in the tabs below. Required A Required B What would be the effect on total profit if National produces the new compound variant? if National produces the new compound, profit will increaseNational Chemical Company manufactures a chemical compound that is sold for $53 per gallon. A new variant of the chemical has been discovered, and if the basic compound were processed into the new variant, the selling price would be $81 per gallon. National expects the market for the new compound variant to be 8,500 gallons initially and determines that processing costs to refine the basic compound into the new variant would be $136, 000. Required: What would be the effect on total profit if National produces the new compound variant? Should National produce the new compound variant?
- Two alternative suppliers are offering to provide a system to recover an organic compound from a process stream in your company's chemical production facility. The cost of the two identical options are quoted as follows: Supplier #1: Total cost of $175,000; 70% of which must be paid now, and the balance to be paid in 12 months time upon completion of the installation of the system. Supplier #2: Total price of $180,000; 25% to be paid now, and the balance to be paid in 3 equal installments at 4 month intervals. You are asked to proceed with the project using the lower cost supplier. Assuming a nominal annual interest rate of 12%, compounded monthly, which one do you choose?Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two types of machines that would be appropriate are presently on the market. The company has determined the following: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Machine A could be purchased for $60,500. It will last 10 years with annual maintenance costs of $2,100 per year. After 10 years the machine can be sold for $6,050. Machine B could be purchased for $55,000. It also will last 10 years and will require maintenance costs of $8,400 in year three, $10,500 in year six, and $12,600 in year eight. After 10 years, the machine will have no salvage value. Required:Assume an interest rate of 8% properly reflects the time value of money in this situation and that maintenance costs are paid at the end of each year. Ignore income tax considerations. Calculate the present value of Machine A & Machine B. Which machine…Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two types of machines that would be appropriate are presently on the market. The company has determined the following: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Machine A could be purchased for $60,500. It will last 10 years with annual maintenance costs of $2,100 per year. After 10 years the machine can be sold for $6,050. Machine B could be purchased for $55,000. It also will last 10 years and will require maintenance costs of $8,400 in year three, $10,500 in year six, and $12,600 in year eight. After 10 years, the machine will have no salvage value. Required:Assume an interest rate of 8% properly reflects the time value of money in this situation and that maintenance costs are paid at the end of each year. Ignore income tax considerations. Calculate the present value of Machine A & Machine B. Which machine…
- 11. Sell or process further. In producing Ergon, a by-product, Bygon, is also made and is sold for $20 per ton. The company is considering combining additional chemicals with Bygon to produce low-grade fertilizer, to be called Exton, and sold to wholesalers at $12 per 100 pounds. The chemi cals would be added to Bygon at the rate of 40 pounds per 100 pounds of by-product. Additional 2500000 costs would be: Chemicals. Direct labor Variable factory overhead.. $7.00 per 100 pounds of input 3.00 per 100 pounds of output 1.50 per 100 pounds of output 100 = 25000 While present facilities are adequate to produce Exton, $40,000 in additional annual promo- tion and advertising costs would be incurred. The current volume of Bygon is 2,500,000 pounds, or (12-11-5)=) 0.5*25000 12500 1,250 tons. Required: Recommendation to sell Bygon or process further to produce Exton. (.Sell or Process Further Port Allen Chemical Company processes raw material D into joint products E and F. Raw material D costs $6 per liter. It costs $100 to convert 100 liters of D into 60 liters of E and 40 liters of F. Product F can be sold immediately for $6 per liter or processed further into Product G at an additional cost of $4 per liter. Product G can then be sold for $14 per liter. Determine whether Product F should be sold or processed further into Product G. • Calculate the net advantage (disadvantage) of further processing • Use a negative sign with your answer to indicate a net disadvantage (if applicable). $0 per literI need solution to part D mainly... if you have time you can solve A,B,C otherwise not required... Graph should be neat and clean. The fuel Company in 2022 requires 240,000 units of raw materials. Purchase price raw materials/unit of Rp. 2,000. The cost of ordering is Rp. 150,000/customer, while storage fee of 25% of the purchase price. You are asked to count : a. What is the most economical order quantity (EOQ)? b. How many orders must be made in a year? c. How many days does the company place an order (1 year = 360 days)? d. Draw the curve?
- Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two types of machines that would be appropriate are presently on the market. The company has determined the following: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)Machine A could be purchased for $27,500. It will last 10 years with annual maintenance costs of $1,000 per year. After 10 years the machine can be sold for $2,750.Machine B could be purchased for $25,000. It also will last 10 years and will require maintenance costs of $4,000 in year three, $5,000 in year six, and $6,000 in year eight. After 10 years, the machine will have no salvage value.Required:Assume an interest rate of 8% properly reflects the time value of money in this situation and that maintenance costs are paid at the end of each year. Ignore income tax considerations.Calculate the present value of Machine A & Machine B. Which machine Esquire…A distributor of fasteners is opening a new plant and considering whether to use a mechanized process or a manual process to package the product. The manual process will have a fixed cost of $36,234 and a variable cost of $2.14 per bag. The mechanized process would have a fixed cost of $84,420 and a variable cost of $1.85 per bag. The company expects to sell each bag of fasteners for $2.75. a) What is the break-even point for the manual process (in units)? b) What is the break-even point for the mechanized process (in units)? c) A point of indifference for two processes is quantity at which each process generates the same amount of profit (review video). What is the point of indifference for the two processes? (Hint: 1) Use equations to set profit of manual process equal to mechanized process and solve for quantity; 2) (Excel) If you have a break-even for each process - have only one cell that represents quantity that be used to calculates costs/revenues for each process and use Goal…Che Required information [The following information applies to the questions displayed below.] Intercontinental's special order requires 1,400 kilograms of genatope, a solid chemical regularly used in the company's products. The current stock of genatope is 9,600 kilograms at a book value of 8.40 p per kilogram. If the special order is accepted, the firm will be forced to restock genatope earlier than expected, at a predicted cost of 9.00 p per kilogram. Without the special order, the purchasing manager predicts that the price will be 8.60 p when normal restocking takes place. Any order of genatope must be in the amount of 5,000 kilograms. 2. Identify the relevance of each of the figures given in the exercise in terms of making the special-order decision. (a) Book value of inventory (b) Quantity to be used in the special order (c) Predicted cost if next order is placed early (d) Predicted cost if next order is placed on time 4 of 6