Utikasn Ltd. purchase glass bowls for € 2.5 per unit or they can manufacture it with fixed cost of € 69,000 and € 1.5. If the demand for glass bowls is 1,01,000 per annum. Which is the better option for the company for better profits and better costs
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Utikasn Ltd. purchase glass bowls for € 2.5 per unit or they can manufacture it with fixed cost of € 69,000 and € 1.5. If the demand for glass bowls is 1,01,000 per annum. Which is the better option for the company for better profits and better costs .
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- A $45,000 investment in a new conveyor system is projected to improve throughput and increasing revenue by $14,000 per year for five years. The conveyor will have an estimated market value of $4,000 at the end of five years. Using NPV with a MARR of 12%, is this a good investment?Juliette loves to eat ice cream and spends a fortune each week buying it. In an effort to save money, she is considering making her own ice cream at home. The cost of an ice cream maker is $150 and the cost of ingredients is $6 for each 1.5 L batch. The cost of the same 1.5 L is $10 at the store. If she eats three litres of ice cream per month, will she save money by making her favourite treat at home? Assume the ice cream maker has a one-year warrant and breaks immediatelv after.Juliette loves to eat ice cream and spends a fortune each week buying it. In an effort to save money, she is considering making her own ice cream at home. The cost of an ice cream maker is $155 and the cost of ingredients is $4 for each 1.5 L batch. The cost of the same 1.5 L is $12 at the store. If she eats three litres of ice cream per month, will she save money by making her favourite treat at home? Assume the ice cream maker has a one-year warranty and breaks immediately after.Cost of making the ice creamCost of buying the ice creamBest option
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- A book publisher has fixed costs of $300,000 and variable costs per book of $8.00. The book sells for $23.00 per copy. If the variable cost per unit decreased, would the new break-even point be higher or lower?Trumps Inc. has developed a chew-proof dog bed-the Tuff Pup. Fixed costs are P 204,000 per year. The average price for the Tuff-Pup is P 36, and the average variable cost is P 22 per unit. Currently, Trumps produces and sells 20,000 Tuff-Pups annually. Required: How many Tuff-Pups must be sold to break-even? If Trumps wants to earn P95,000 in profit, how many Tuff-Pups must be sold? Prepare a variable-costing income statement to verify your answer. Suppose that Trumps would like to lower the break-even units to 12,000. The company does not believe that the price or fixed cost can be changed. Calculate the new unit variable cost that would result in break-even units of 12,000 units. (Round to the nearest cent). What is Trumps current contribution margin and operating income? Calculate the degree of operating leverage (round your answer to four decimal places.) If sales increased by 10% next year, what would the present change in operating income be?Yuki sells rose flower pots. She gets the pots from Lazada. The price he paid for 6 pots is Php4,800.00. To covers costs, Yuki needs to generate a profit margin of 68% for each vase. What percentage mark-up should she add on each pot? If all the pots are sold, what is the total revenue generated? What is the total profit generated? What is the % margin?
- Consider the following costs of Zula Ltd over the relevant range of 5 000 to 2 0000 units produced.Units produced 5 000 10 000 15 000 20 000Variable cost $200 000 ? ? ?Fixed cost $1 800 000 ? ? ?Total ? ? ? ?Cost per unitVariable cost ? ? ? ?Fixed cost ? ? ? ?Total ? ? ? ?RequiredComplete the above tableA Limited is a manufacturer of china plates. Its costs include the following: Payments to plate painters. The painters each receive a basic wage and then are paid a fixed sum for each completed plate that passes the firm’s quality checks. Managing director’s salary Cost of china clay used in production Royalty payable to designer. The designer receives £30 for production runs of up 1000, £60 for production runs of up to 2000, and so on Depreciation of delivery vehicle” “Required: Classify each of these costs as: variable, fixed, stepped or semi-variable"Mikey W. Smitty, an emerging rapper, is getting ready tocut his first CD, called “Western Rap.” The cost of recording the CD is $5000 but copies are $5 apiece. If the CDscan be sold for $15 each, how many CDs must be sold tobreak even? What is the breakeven point in dollars?