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- ENGINEERING ECONOMY RATE WILL BE GIVEN. WRITE THE COMPLETE SOLUTIONS/EXPLANATION LEGIBLY OR TYPEWRITTEN. GIVE STRAIGHT TO THE POINT EXPLANATION. A company is analyzing a make-versus-purchase situation for a component used in several products, and the engineering department has developed these data: Option A: Purchase 10,000 items per year at a fixed price of $8.50 per item. The cost of placing the order is negligible according to the present cost accounting procedure. Option B: Manufacture 10,000 items per year, using available capacity in the factory. Cost estimates are direct materials = $5.00 per item and direct labor = $1.50 per item. Manufacturing overhead is allocated at 200% of direct labor (= $3.00 per item). Based on these data, should the item be purchased or manufactured?A company plans to design and build transport vehicles for the Army. The cost for the design is $10M. The cost for the test prototype is $2M. The cost to produce and test each production vehicle is $0.5M. What is the non-recurring cost? What is the recurring cost per vehicle? What price per vehicle must the company sell the vehicles to the government to make $50K profit per vehicle if the company sold 50 vehicles? 100 vehicles? Why does the price per vehicle go down when production goes up?The Allianz Company produces a specialty wood furniture product, and has the following information available concerning its inventory items: Relevant ordering costs per purchase order $520 Relevant carrying costs per year for each product: Required annual return on investment 16% Required other costs per year $9 Annual demand is 32,000 prroducts per year. The purchase price per product is $51.What is the economic order quantity?
- Use the following information to calculate the change in value that would result if the benchmark were achieved for this company for a full year: Benchmark Cost per Occupied Room $ 3.85 Current Cost Per Occupied Room Total Rooms (per day) $ 4.00 1,500 Occupancy percentage Capitalization Rate 78 % 6 % Show your work.Bose will incur fixed costs of $200,000 and unit variable costs of $25 on its new wireless Bluetooth shower speaker. Bose plans to price the speaker at $750. To break-even, Bose must sell _____ units.The Rosebud Motel is a must-stay for any road-tripper or weary traveler. The motel fils each of its 24 rooms for 200 nights each during the year. Annual fixed costs total $160,000. The variable cost of one night's stay is $100. The motel owners expect a 50% return on the company's $500,000 of assets each year. The Rosebud Motel is currently the only place to stay for 50 miles. What should Rosebud's cost-plus price be if sales volume and costs are expected to stay consistent? OA. $133.33 OB. $185.42 OC. $2,150.00 OD. $152.08 OE. The Rosebud Motel would not set its price as it is a price-taker in this market.
- 8. The cost of producing a small transistor radio set consists of P23.00 for labor and P37.00 for materials. The fixed charges in operating the plant are P100,000 per month. The variable cost is P1.00 per set. The radio set can be sold for P75.00 each. Determine how many sets must be produced per month to break even.Once the break-even point has been reached, net income will increase by the unit contribution margin for each additional unit sold. True or false?Given an EOQ problem modelled below, compute for L (lead time in days). Only final answer is rounded (two decimal places) which means that any intermediate value must not be rounded off. For guidance, D is the annual demand and ROP is the reorder point. D = 6,000 units/year EOQ Model Q* ROP = 1/4 of average inventory t L 250 working days (1 year)
- On February 1, Mosbius Designs needs to purchase some office equipment. The company is short of cash and expects to be short for several months. The treasurer has said that he could pay for the equipment in payments occurring every two months beginning on April 1 and ending on December 1. The first payment will be $80, and payments will be $87 more every two months. For example, the payment on June 1 will be $80 + $87. A local office supply firm will agree to sell the equipment, Miro, now and accept payment according to the treasurer's schedule. If interest will be charged at 12% annually, compounded every 2 months, how much office equipment can the Miro Company buy now? What is the present worth of the payment schedule? Round your answer to two (2) decimal places.ABC Corporation manufactures a certain product that sells for P5,000 each. The company’s maximum production capacity is 360 units per year. At present it is able to produce and sell 280 units a year. The cost to manufacture each product is P2,400 and the fixed operating cost per year is P520,000.1. What is the break – even sales volume of the product per year?2. What is the profit per year based on the present production – sales status?3. What is the loss if only 150 units were produced and sold in a year?A company makes a product with a selling price of $20 per unit and variable costs of $ 8 per unit. The fixed costs for the period are $30762. What is the required output level to make a target profit of $15,000?