ble 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)

ble 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)

Accounting Information Systems

10th Edition

ISBN:9781337619202

Author:Hall, James A.

Publisher:Hall, James A.

Chapter13: Systems Development And Program Change Activities

Section: Chapter Questions

Problem 12P: COST-BENEFIT ANALYSIS Listed in the diagram for Problem 7 are some probability estimates of the...

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Estimate the NPV, ROI, and payback period for the XYZ project using the information below, Estimated costs for the XYZ project are $200,000 in year 0 and $50,000 each in years 1, 2, and 3. Estimated benefits are $0 in year 0 and $150,000 each year in years 1, 2 and 3. Calculate the following i) NPV, ii) ROI, iii) and year in which payback occurs for a discount rate of 6.5
Estimate the NPV, ROI, and payback period for the XYZ project using the information below, Estimated costs for the XYZ project are $200,000 in year 0 and $50,000 each in years 1, 2, and 3. Estimated benefits are $0 in year 0 and $150,000 each year in years 1, 2 and 3. Calculate the following i) NPV, ii) ROI, iii) and year in which payback occurs for a discount rate of 6.5%. Discount Rate Paragraph Costs Assume the Project started in year 0 Discount Factor Discounted Costs Benefits Discount Factor Discounted Benefits ROT BIEEE 8 Discounted Benefits-Costs Cumulative Benefits-costs Pay Back Year 6.5% 0 1 2 3 Total
The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: ProcurementCost ($) Probability LaborCost ($) Probability TransportationCost ($) Probability 10 0.2 18 0.25 2 0.74 12 0.35 20 0.35 5 0.26 13 0.45 22 0.1 25 0.3 Compute profit per unit for the base-case, worst-case, and best-case scenarios.Profit per unit for the base-case: $ fill in the blank 1Profit per unit for the worst-case: $ fill in the blank 2Profit per unit for the best-case: $ fill in the blank 3 Construct a simulation model to estimate the mean profit per unit. If required, round your answer to the nearest cent.Mean profit per unit = $ fill in the blank 4 Why is the simulation approach to risk analysis preferable to generating a variety of…
K Fabulous Fabricators needs to decide how to allocate space in its production facility this year is considering the following contra a. What are the profitability indexes of the projects? b. What should Fabulous Fabricators de? What are the profitability indexes of the projects? The profitability index for contract Ais (Round to be decimal places) Round to two decimal places) The profitablity index for contract Dis The profitability index for contract CH b. What should Fabulous Fabrators do? (Select the best choice below) OA It should take the two projects with the highest profitability indexes C and A OB. Since it has the capacity to do both Band C and NPV NPV is greater than NPV, it should do to and C OC. Since the NPV of A is the largest, it should choose A OD. Since the profitability indes for the largest, it should choose C Data table (Click on the following icon in order to copy its contents into a spread) Contract Use of Facility 100% 55% 45% C $2.02 m $105 min $1.46 milion…
Using the data below compute of the following: Contribution margin per unit in 3. 2018, 4. 2019 5. 2020 BEP in sales units in 6. 2018 7. 2019 8. 2020 BEP in peso sales in 9. 2018 10. 2019 11. 2020 What is the required sales in unit for the desired Net profit 12. 2018 13. 2019 14. 2020 2018 2019 2020 Sales per unit Desired profit Fixed costs. P7.50 P9.00 P10.00 P15,000 P28,000 P30,000 360,000 375,000 420,000 Variable cost Cost per unit: Variable cost 2.50 4.00 4.00
I need help with finding the accounting breakeven and cash break even and OCF at financial breakeven with taxes. Also, what excel function to use for NPV calculation in the NPV profile D11 XVfx C TOSK T lapet area: Initial cost Unit sales Price/unit Variable cost/unit B TOYT E Fixed costs Project life 1,000,000 Required return 11% 5,000 Tax rate 21% 7,000 Unit sales uncertainty 8% 6,400 Variable cost uncertainty 270,000 Fixed cost uncertainty 8% 5 Question 1 Base Case Best Case Worst Case Unit sales 5,000 Variable cost/unit 6,400 5,400 1 5,888 4,600 6,912 Fixed costs 270,000 Sales 35,000,000 Variable cost 32,000,000 Fixed cost 270,000 Depreciation 200,000 248,400 37,800,000 31,795,200 248,400 ! 200,000 32,200,000 31,795,200 291,600 291,600 200,000 EBIT 2,530,000 5,556,400 (86,800) Taxes (21%) Net income OCF 531,300 1,166,844 (18,228) 1,998,700 4,389,556 (68,572) 2,138,700 4,589,556 131,428 NPV $7.126.168.77 $15,962,526.33 ($514,255.65) Question 2 fignoring Taxes with Taxes) x…
COST-BENEFIT ANALYSIS Listed in the diagram for Problem 7 are some probability estimates of the costs and benefits associated with two competing projects. a. Compute the net present value of each alternative. Round the cost projections to the nearest month. b. Repeat step (a) for the payback method. c. Which method do you think provides the best source of information? Why?
C1 C2 R to 22800 18000 22100
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Iggy Company is considering three capital expenditure projects. Relevant data for the projects are as follows. Annual Life of Project Investment Income Project 22A $242,800 $16,840 6 years 23A 275,000 20,680 9 years 24A 282,000 15,700 7 years Annual income is constant over the life of the project. Each project is expected to have zero salvage value at the end of the project. Iggy Company uses the straight-line method of depreciation. Click here to view PV table. (a)