The Asian Transmission Company makes and sells certain automotive parts. Present sales volume is 500,000 units a year at a selling price of ₱ 0.50 per unit. Fixed expenses total ₱ 80,000. Determine the break-even point.
Q: SHOW YOUR SOLUTION PLEASE. (DON'T USE TABLE) 1. A company that sells computers has proposed to a…
A: Replacement Analysis is the technique utilized in capital planning which assists with choosing…
Q: CT Corp. is considering two mutually exclusive projects. Both require an initial investment of…
A: Net Present Value, or NPV, refers to the difference between present values of cash inflows and the…
Q: FootballComm LLC is a manufacturer of devices for football coaches and their coaching staffs that…
A: Here we calculate the economic worth of producing the headsets by calculating the net present worth…
Q: Estimated sales of a product is 30000 units. Two kinds of raw materials P and Q are required for…
A: Given, Two raw materials are used P and Q Expected units to be sold = 30,000 Opening balance of…
Q: Ruth Brennan is evaluating two options. The first option is to open her own legal practice. Based on…
A: Given, The total revenue earned by Ruth Brennan from business = $320,000 Cost of purchases -…
Q: Two investments involving a virtual mold apparatus for producing dental crowns qualify for different…
A:
Q: The Electro-comp Corporation manufactures 2 electrical products: air conditioners and large fans.…
A:
Q: A convertible bond has a par value of $1,000, but its current market price is $950. The current…
A: The par value of bond = $1000 Current market price of bond = $950 The company's stock price = $19…
Q: A building contractor is faced with the problem of possibly paying liquidation damages of PhP…
A: Building contractors Liquidated Damage = 20,000 per day for delay. No. of days left for contract…
Q: The internal rate of return on some project is defined as the rate of interest that a. makes the NPV…
A: The answer is - a. Makes the NPV of the project equal to zero.
Q: When evaluating a new project, the firm must consider all off the following factors EXCEPT:
A: Discounted income or "DCF" will be accustomed estimate the worth of a specific project, a company,…
Q: Offshore Petroleum's fixed costs are $2,500,000 and its debt repayment requirements are $1,000,000.…
A: a. Breakeven output (in dollars) = Fixed cost / Profit-volume ratio = $2500000 / 0.4444 = $5625563…
Q: The cost of making a small transistor radio is 23.00 php in labor costs and 37.00 php in material…
A: Given; Labor cost of making a small transistor radio= 23.00php Material cost of making a small…
Q: Company XYZ is an electric car manufacturer. The company produces and sells two models: Standard and…
A: The above question has been solved using the Goal Seek function in MS Excel as shown below.
Q: Electric posts and transmission lines must be installed in a new industrial park. It has been…
A: Cost of a project refers to expenditures connected with the design, planning, and execution of a…
Q: A toy manufacturing company is selling pokemon figures in Latin America, generating annual revenues…
A: Annual revenue is the total amount of money a firm earns from the sale of products, services,…
Q: Company X has been contracting its overhauling work to Company Y for$40,000 per machine per year.…
A: The annual equivalent cost can be calculated as follows:
Q: Two investments involving a virtual mold apparatus for producing dental crowns qualify for different…
A: Answer A and B is in second and third step:
Q: Identify the special cash flow category for each of the following.
A: Sunk Cost is defined as the cost that has been undertaken as a part of production and cannot be…
Q: A company is considering the purchase of a generating set to supply the electrical needs of his…
A:
Q: A company is trying to consider buying an equipment with an initial cost of $80,000. The salvage…
A: In this case the sinking fund approach will work where uniform amount is invested to get the amount…
Q: Two investments involving a virtual mold apparatus for producing dental crowns qualify for different…
A:
Q: For a certain company, the costs involved in producing blocks of ice are as follows: Cost of…
A: cost of production is the monetary value spent on inputs to produce output. And there are two types…
Q: International Machine Manufacturing Company is preparing to build a new plant by considering three…
A: A B C Annual Fixed Cost 1,00,000 2,50,000 5,50,000 Per unit variable cost 16 12 10
Q: A company is considering constructing a plant to manufacture a proposed new product. The land costs…
A: Land cost = $300,000 Building cost = $600,000 Equipment cost = $250,000 Additional working capital…
Q: he Electro-comp Corporation manufactures 2 electrical products: air conditioners and large fans. The…
A: Air conditioners = X Large fans = Y To maximize the benefits, Z = Px*X + Py*Y Z = 25X + 15Y Subject…
Q: Two alternatives are being considered by a food processor for the warehousing and distribution of…
A: (a) Let assume interest rate (i) is 10% for the calculation of time value purpose. Cost for…
Q: An integrated, combined cycle power plant produces 285MW of electricity by gasifying coal. The…
A:
Q: A firm has current after-tax earnings of P1,000,000 and has declared a cash dividend of P20,000. The…
A: Dividend-payout ratio:- The preferential and regular dividend payments ratios are compared to the…
Q: machine has a cost of Php 13391.00. It has a salvage of Php 2680.00 and an economic life of 10…
A: Sum of year's digit technique : It is variety of the "Lessening Balance Method". For this situation,…
Q: Harris International currently pays a dividend of $3.24 per share on its preferred stock that sells…
A: The amount of funding can be calculated as follows. The calculated value shows that the amount of…
Q: Fixed costs are irrelevant in decisions about whether a product should be retained or be dropped.…
A: 22. The required rate of return is the maximum rate of return that an investment project yield be…
Q: A company manufacturing calculators has a capacity of producing 200 calculators a month. The…
A: The total cost incurred by a firm operating in a market includes fixed costs and variable costs.…
Q: Which of the following would be an advantage of using a Project Management software application…
A: Project management software help in planning,collaboration,organise resources,reporting,project…
Q: Consider the following two mutually exclusive service projects with projectlives of three years and…
A: Present value is the sum of money to be earned in the potential that is equal in worth to a…
Q: Illustrate the procedure of break-even analysis based on NPW?
A: The break-even analysis determines the point of output where the total cost is equal to total…
Q: Assume that sales are predicted to be $3,300, the expected contribution margin is $1,155, and a net…
A: To calculate the break-even point of a organization, the annual constant value is split by the…
Q: A manufacturing company is considering a capacity expansion investment at the cost of $241,797 with…
A: * SOLUTION :-
Q: A machine cost 7,350 has a life of 8 years and has a salvage value of 350 at the end of a years.…
A: Given: The cost of a machine is = $7,350 Machine life = 8 years Salvage value of = $350 To Find: The…
Q: The gross requirements for item A are specified for the beginning of weeks 1 through 12 in the table…
A: * SOLUTION :- Given that , The lead time = 2 weeks The order cost = 160 The inventory cost is…
Q: You want to establish your own business and are thinking about releasing a new product. Customers…
A: Profit = TR - TC Breakeven occurs if the profit is 0 and TR=TC
Q: Company C manufactures electric motors. The variable costs are $5,000 per month, the average selling…
A: The total cost incurred by the firms operating in a market includes fixed costs and variable costs.…
Q: Mama Leone's Frozen Pizzas uses 50,000 units of cheese per year. Each unit costs $2.50. The ordering…
A: Economic order quantity is positively related to the ordering cost. It means as ordering cost rises…
Q: Ruth Brennan is evaluating two options. The first option is to open her own legal practice. Based on…
A: Calculation of Accounting Profit of Ruth Brennan Accounting profit is a company's total earnings as…
Q: Two alternative designs are under consideration for a tapered fastening pin. The fastening pins are…
A: Operating cost of lathe including labor = $18.60 per hr Operating cost of drill including labor =…
Q: A financial investor has an investment portfolio. A bond in her investment portfolio will mature…
A: Let us understand the returns on reinvestment Option A: There are three possible return depends upon…
Q: Development projects done by Standalone Products are subsidized by a government grant program. The…
A: Given information Two project Checkweigher and Scheduler Checkweigher Project First cost =$32000…
The Asian Transmission Company makes and sells certain automotive parts. Present sales volume is 500,000 units a year at a selling price of ₱ 0.50 per unit. Fixed expenses total ₱ 80,000. Determine the break-even point.
Step by step
Solved in 3 steps
- National 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 $90 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 $170,000.When evaluating a new project, the firm must consider all off the following factors EXCEPT: Sunk costs such as previous expenditures associated with a market test to determine the feasibility of the project. Changes in net operating working capital attributable to the project. The current after-tax salvage value of a piece of previously acquired land where the new project will be housed. The side effect that the project may have on the firm’s current business and operation.A financial investor has an investment portfolio. A bond in her investment portfolio will mature next month and provide her $25,000 to reinvest. The choices for reinvestment have been narrowed to the following two options:Option 1: Reinvest in a foreign bond that will mature in one year. Thistransaction will entail a brokerage fee of $150. For simplicity, assume thatthe bond will provide interest over the one-year period of $2,450, $2,000, or $1,675 and that the probabilities of these occurrences are assessed to be 0.25, 0.45, and 0.30, respectively.Option 2: Reinvest in a $25,000 certificate with a savings and loan association.Assume that this certificate has an effective annual rate of 7.5%.Which form of reinvestment should the investor choose in order to maximize her expected financial gain?
- The Titanic Shipbuilding Company has a noncancelable contract to build a small cargo vessel. Construction involves a cash outlay of $265,000 at the end of each of the next two years. At the end of the third year, the company will receive payment of $625,000. The company can speed up construction by working an extra shift. In this case, there will be a cash outlay of $575,000 at the end of the first year followed by a cash payment of $625,000 at the end of the second year. Use the IRR rule to show the (approximate) range of opportunity costs of capital at which the company should work the extra shift Please answer fast I give you upvoteYour company manufactures circuit boards and other electronic parts for various commercial products. Design changes in part of the product line, which are expected to increase sales, will require changes in the manufacturing operation. The cost basis of new equipment required is $220,000 (MACRS five-year property class). Increased annual revenues, in year zero dollars, are estimated to be $360,000. Increased annual expenses, in year zero dollars, are estimated to be $239,000. The estimated market value of equipment in actual dollars at the end of the six-year analysis period is $40,000. General price inflation is estimated at 4.9% per year; the total increase rate of annual revenues is 2.5%, and for annual expenses it is 5.6%; the after-tax MARR (in market terms) is 10% per year (im); and t = 39%. (Refer to Chapter 7 and Problem 8.7) a. Based on an after-tax, actual-dollar analysis, what is the maximum amount that your company can afford to spend on the total project (i.e., changing…Two alternatives are being considered by a food processor for the warehousing and distribution of its canned products in a sales region. These canned products come in standard cartons of 24 cans per carton. The two alternatives are as follows.Alternative A: To have its own distribution system. The administrative costs are estimated at $43,000 per year, and other general operating expenses are calculated at $0.009 per carton. A warehouse will have to be purchased, at a cost of $300,000. Alternative B: To sign an agreement with an independent distribution company that is asking a payment of $0.10 per carton distributed. Assume a study period of 10 years and that the warehouse can be sold at the end of this period for $200,000. a. Which alternative should be chosen, if management expects that the number of cartons to be distributed will be 600,000 per year? b. Find the minimum number of cartons per year that will make the alternative of having a distribution system (Alt. A) more…
- A company is considering the purchase of a generating set to supply the electrical needs of his office during brownouts. The generating set costs P 70,000 with a life of 10 years with a salvage value of P 10,000. The daily operating cost is P 50 per hour. During a brownout, the office operation will be delayed which cause a loss of P 150 per hour. At 18% interest rate, how frequent( in number of hours per year ) is the brownout to justify the purchase of the generator set?Michelin is considering going ‘‘lights-out’’ in the mixing area of the business that operates 24/7. Currently, personnel with a loaded cost of $590,000per year are used to manually weigh real rubber, synthetic rubber, carbon black, oils, and other components prior to manual insertion in a Banbary mixer that provides a homogeneous blend of rubber for making tires (rubber products). New technology is available that has the reliability and consistency desired to equal or exceed the quality of blend now achieved manually. It requires an investment of $2,250,000, with $93,000 per year operational costs and will replace all the manual effort described above. The planning horizon is 8 years, and there will be a $275,000 salvage value at that time for the new technology. Marginal taxes are 25%, and the after-tax MARR is 10%. The new investment relates to the 7-Year Property Class. Part a Determine the annual cost of purchasing the new technology. $enter a dollar amount Carry all interim…Illustrate the procedure of break-even analysis based on NPW?
- Two alternative designs are under consideration for a tapered fastening pin. The fastening pins are sold for $0.70 each. Either design will serve equally well and will involve the same material and manufacturing cost except for the lathe and drill operations. Design A will require 12 hours of lathe time and 5 hours of drill time per 1,000 units. Design B will require 7 hours of lathe time and 8 hours of drill time per 1,000 units. The variable operating cost of the lathe, including labor, is $18.60 per hour. The variable operating cost of the drill, including labor, is $16.90 per hour. Finally, there is a sunk cost of $5,000 for Design A and $9,000 for Design B due to obsolete tooling. Solve, a. Which design should be adopted if 125,000 units are sold each year? b. What is the annual saving over the other design?Two alternative designs are under consideration for a tapered fastening pin. The fastening pins are sold for $0.70 each. Either design will serve equally well and will involve the same material and manufacturing cost except for the lathe and drill operations. Design A will require 12 hours of lathe time and 5 hours of drill time per 1,000 units. Design B will require 7 hours of lathe time and 8 hours of drill time per 1,000 units. The variable operating cost of the lathe, including labor, is $18.60 per hour. The variable operating cost of the drill, including labor, is $16.90 per hour. Finally, there is a sunk cost of $5,000 for Design A and $9,000 for Design B due to obsolete tooling. Which design should be adopted if 250,000 units are sold each year? What is the annual saving over the other design?An equipment was purchased now at P10,000,000.00 prevailing interest rate is 10% per year. Solve the following cases capitalized cost: Solve for case 2 if the machine on item 1.1 is to be replaced every end of 10 years at 10% worth of money. Salvage cost is zero.