Archer Logistics will ship all of the Canadian athletes' gear to Germany for the World Cup. The company has the following historical information based on similar trips taken overseas: Trip Nautical Miles Operating Costs 1 450,000 $320,000 2 540,000 $365,000 3 620,000 $405,000 What is the best estimate of total operating costs using the high-low method if the expected mileage for the trip to Germany is 550,000 miles?

General Accounting

A piece of laborsaving equipment has just come onto the market that Mitsui Electronics, Ltd., could useto reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow (currency is inthousands of yen, denoted by ¥):Purchase cost of the equipment ............. ¥432,000Annual cost savings that will beprovided by the equipment .................. ¥90,000Life of the equipment .............................. 12 yearsRequired:(Ignore income taxes.)1. Compute the payback period for the equipment. If the company requires a payback period of fouryears or less, would the equipment be purchased?2. Compute the simple rate of return on the equipment. Use straight-line depreciation based on theequipment’s useful life. Would the equipment be purchased if the company’s required rate of returnis 14%?

Amarjit Truckers, Ltd. operates a fleet of delivery trucks in North America. The company has determined that, if a truck is driven 120,000 kilometres during a year, the average operating cost is 18.000 cents per kilometre. If a truck is driven only 50,000 kilometres during a year, the average operating cost increases to 21.0 cents per kilometre. Required: 1. Using the high - low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (Do not round intermediate calculations. Round the "Variable cost" to 5 decimal places. Round "Fixed cost" to 2 decimal places.) 2. Express the variable and fixed costs in the form Y = a + bX. (Do not round intermediate calculations. Round the "Variable cost" to 5 decimal places. Round "Fixed cost" to 2 decimal places.) 3. If a truck were driven 80,000 kilometres during a year, what total cost would you expect to be incurred? (Do not round intermediate calculations. Round "Total annual cost" to 2 decimal places.)

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Emerald Island Company is considering building a manufacturing plant in County Kerry. Predicting sales of 100,000 units, Emerald Isle estimates the following expenses: An Irish firm that specializes in marketing will be engaged to sell the manufactured product and will receive a commission of 10% of the sales price. None of the U.S. home office expense will be allocated to the Irish facility. Required: 1. If the unit sales price is 2, how many units must be sold to break even? (Hint: First compute the variable cost per unit.) 2. Calculate the margin of safety ratio. 3. Calculate the contribution margin ratio.

Please answer these all.

Lee Enterprises operates in the leisure and enter-tainment industry and one of its activities is to promote concerts at locations throughout the world. The company is examining the viability of a concert in Singapore. Estimated fixed costs are £60 000. These include the fees paid to performers, the hire of the venue and advertising costs. Variable costs consist of the cost of a pre-packed buffet that will be provided by a firm of caterers at a price, which is currently being negotiated, but it is likely to be in the region of £10 per ticket sold. The proposed price for the sale of a ticket is £20. The management of Lee has requested the following information: 1 The number of tickets that must be sold to break even (that is, the point at which there is neither a profit nor a loss).2 How many tickets must be sold to earn £30 000 target profit?3 What profit would result if 8000 tickets were sold?4 What selling price would have to be charged to give a profit of £30 000 on sales of 8000…

Suppose that Kittle Co. is a U.S. based MNC that is considering setting up a subsidiary in Singapore. Kittle would like this subsidiary to produce and sell guitars locally in Singapore, and needs assistance with capital budgeting. The duration of this project is four years, with an initial investment of S$20,000,000 (Singapore dollars). Kittle Co. managers have also provided you with forecasted expense data, including variable cost per unit, total variable cost, annual lease expense, depreciation, as well as other fixed annual overhead expense, over the next four years. The following table shows the forecasted expense data along side the previous forecasts provided by Kittle management. Complete row 9 of the table, filling in the total expense for the project for each of the 4 years. 1. Demand 2. Price per Unit 3. Total Revenue 4. Variable Cost Per Unit 5. Total Variable Cost 6. Annual Lease Expense 7. Other Fixed Annual Expense 8. Noncash Expense (Depreciation) 9. Total Expense Year 0…

In addition to its Australian business, Big Red Bicycle is considering manufacturing anew range of cheaper bicycles in Indonesia. The following information is available:● The Indonesian plant has capacity to manufacture 8,000 units.● Big Red Bicycle’s strategic goal is to generate a pretax profit of $1,000,000 forthe next financial year for Indonesian operations.● Clients will pay a maximum of $500 per bicycle● Possibility exists for move to Indian plant with capacity for 10,000 units.● Market for bicycles is growing rapidly and BRB will be able to sell allunitsproduced.● Limited ability to renegotiate costs with suppliers.● Pricing and cost information is as follows. Bicycle price per unit $500 (excl. GST)Current variable costs perunit $250 Fixed costs $1,280,000 Complete the following. 1. On your response document, work out:a. how many units at current variable cost would need to be produced toachieve profit target (show calculations)b. what the variable costs per unit would need to…