Problem 6 Given the marginal cost data in the table below for a defender, it is economical to replace the defender in year 1 if EUAC of challenger is $12,500. Year 1 Marginal cost of defender $13,000 2 $12,000 3 $11,000 4 $16,000 5 $15,000
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- Required information Problem 03.036 DEPENDENT MULTI-PART PROBLEM - ASSIGN ALL PARTS A process for producing the mosquito repellant Deet has an initial investment of $205,000 with annual costs of $55,000. Income is expected to be $90,000 per year. Problem 13.036.b: Calculate the breakeven point What is the annual breakeven production quantity for both payback periods if net profit, that is, income minus cost, is $10 per gallon? When i=0%, the annual breakeven production quantity is determined to be 3504 gallons per year. When 12%, the annual breakeven production quantity is determined to be 1914 gallons per year.Question 4 There is a material, which demand is: 5000 unit/year. We have Reorder Cost: $10, Holding Cost: $4/unit per year. The supplier offers variable Unit Cost as below: Q2999, UC=$5.8 Please help to determine the optimal order quantityble cost per unit 1.3 ginal income per REQUIRED Use the information provided below to calculate the following independently: 1.3.1 Net profit 1.3.3 Marginal income per unit that will enable the project to break even 1.3.2 Break-even quantity if the selling price increases to R130 per unit INFORMATION Caprice Limited plans to start Project Star and the following are the forecasts for 2024 Sales Direct materials cost per unit Direct labour cost per unit Variable selling costs Manufacturing overhead costs (all fixed) Fixed selling and administrative costs 50 000 units at R120 per unit R36 R24 10% of sales R841 000 R1 040 000 (2 marks) (2 marks) (4 marks)
- Activity Frame $1,551.22 $1,163.42 $1,318.54 $1,706.34 Fox spent $1,500 on a marketing study to estimate the number of units that it can sell each year. What should Fox do to take this information into account? The company does not need to do anything with the cost of the marketing study because the marketing study is a sunk cost. Increase the NPV of the project $1,500. Increase the amount of the initial investment by $1,500.Chapter 10 18) For February, the cost components of a picture frame include $0.30 for the glass, $0.75 for the wooden frame, and $0.80 for assembly. The assembly desk and tools cost $500. 250 frames will be produced in the coming year. What cost function best represents these costs? A) y = 1.85 + 500X B) y = 500+ 1.85X C) y = 3.85 + 600X D) y = 1.05 + 500XProject A Time 0 - 10,000 Time 1 5,000 Time 2 Time 3 4,000 3,000 Project B - 10,000 4,000 3,000 10,000 If WiseGuy Inc. is choosing one of the above mutually exclusive projects (Project A or Project B), given a discount rate of 8%, which should the company choose? OA. Project A OB. Project B OC. Neither project-both have negative NPV. OD. Both projects-both have positive NPV.
- Chapter 6 Uniform Señes Analysisy Acertain 'ndustrial firm desires an economic analysis to detemine which of twodifferent machine should be purechased. Each machine s capable of performing the same task given amount of Hime . Assume the minimum attactiverate od returnMARR) is 8%. The following data are to beüsedin your anaylsis Machine X Machine Y First cost $ 5000.00 $8000,00 $150.00 $2000.00 Annual Manitenance Cost $00.00 Salvage value Es timated life inyear which machine would youchoo se? Base your answer on annual.cost Pravide cash flow diagrams and Showyour work? $00.00 12 i50 150 ISo 15. 150 IS. 15a 15. İso 1 2000. 150 ISo A A 5 6 7 la 12Question 7 A company can invest in two alternatives: Machine Eco and Machine Top. The controlling department provides the following data. Eco total annual costs annual sales 3.600.000,00 € 4.000.000,00 € 3.000.000,00 € € 8 purchasing price machine residual value useful life (years) The cost of capital are 10%. How would you decide using the • profit comparison calculation and the profitability comparison? When will the machines be amortized? Question 8 Top 3.700.000,00 € 4.200.000,00 € 4.500.000,00 € € 8 Please refer to question no. 7. What would be the results Eco had a residual value of € 500.000,-- and Top of € 600.000,--?D Question 39 If the selling price per unit is $10, the unit contribution margin is $5, and total fixed expenses are $15,000, what are the breakeven sales in units? O 75,000 O 150,000 O 1,500 0 3,000
- QUESTION 4 Exxarro Llimited is considering pricing and costing for the year ahead. The following data based on expected production and sales of 15 000 units are provided for analysis: Variable manufacturing cost Fixed manufacturing cost R1 185 000 R510 000 R5 per unit sold R130 000 Sales commission Fixed administration cost Sales R210 per unit Study the information provided above and answer the following questions independently: 4.1 Calculate the break-even sales value. 4.2 Calculate the sales volume required to achieve a profit of R 800 000. 4.3 Suppose Exxaro Limited is considering a decrease of 10% per unit in the selling price of the product with the expectation that it would increase sales volume by 10%. Is this a good idea? Motivate your answer with relevant calculations.Question 15 of 16 Elise and her friend Eloi developed an online car repair training course and sell it for $69 per course. The contribution margin per course is $26 and to break even they need to have a total revenue of $12,420 per annum. a. What is the break-even volume? Round up to the next whole number b. What is the fixed costs per annum? Round to the nearest cent c. What is the total revenue if they sell 3,020 courses this year?Problem 1: Four design alternatives were proposed. Each design alternative has unique costs and benefits. Given the information for the four mutually exclusive in the table below, recommend the best altemative using the incremental B/C ratio analysis method knowing that the MARR is 6%. (Use the PW in your calculation) Alternative 3. 4 12500 Capital investment cost $ 11000 12500 16800 Annual operating 120 and maintenance cost $ 480 450 140 Annual utility 580 700 950 1300 savings $ Annual revenue $ 700 550 200 250 Annual benefit S other 400 750 150 500 Project life in 40 40 40 40 years