Light emitting diodes (LED) light bulbs have become required in recent years, but dothey make financial sense? Suppose a typical 60-watt incandescent light bulb costs $.37and lasts 1,000 hours. A 15-watt LED, which provides the same light, costs $3.00 andlasts for 12,000 hours. A kilowatt-hour of electricity costs $.113. A kilowatt-hour is 1,000watts for 1 hour. If you require a return of 10 percent and use a light fixture 500 hours peryear, what is the equivalent annual cost of each light bulb? (A negative answer shouldbe indicated by a minus sign. Do not round intermediate calculations and round youranswers to 2 decimal places, e.g., 32.16.)60-watt incandescent light bulbLED light bulb

Answered: Light emitting diodes (LED) light bulbs…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 2PA: Syntech makes digital cameras for drones. Their basic digital camera uses $80 in variable costs and...

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Syntech makes digital cameras for drones. Their basic digital camera uses $80 in variable costs and requires $1,500 per month in fixed costs. Syntech sells 100 cameras per month. If they process the camera further to enhance its functionality, it will require an additional $45 per unit of variable costs, plus an increase in fixed costs of $1,000 per month. The current price of the camera is $160. The marketing manager is positive that they can sell more and charge a higher price for the improved version. At what price level would the upgraded camera begin to improve operational earnings?
Mortech makes digital cameras for drones. Their basic digital camera uses $80 in variable costs and requires $1,500 per month in fixed costs. Mortech sells 200 cameras per month. If they process the camera further to enhance its functionality, it will require an additional $45 per unit of variable costs, plus an increase in fixed costs of $1,000 per month. The current price of the camera is $200. The marketing manager is positive that they can sell more and charge a higher price for the improved version. At what price level would the upgraded camera begin to improve operational earnings?
Light emitting diodes (LED) light bulbs have become required in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $.55 and lasts 1,000 hours. A 15-watt LED, which provides the same light, costs $3.90 and lasts for 12,000 hours. A kilowatt-hour of electricity costs $.131. A kilowatt-hour is 1,000 watts for 1 hour. If you require a return of 11 percent and use a light fixture 500 hours per year, what is the equivalent annual cost of each light bulb? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Light emitting diode (LEDs) light bulbs have become required in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent light bulb costs $.35 and lasts for 1,000 hours. A 15-watt LED, which provides the same light, costs $2.90 and lasts for 12,000 hours. A kilowatt hour of electricity costs $.111. A kilowatt-hour is 1,000 watts for 1 hour. However, electricity costs actually vary quite a bit depending on location and user type. An industrial user in West Virginia might pay $.04 per kilowatt-hour whereas a residential user in Hawaii might pay $.25.. You require a return of 9 percent and use a light fixture 500 hours per year. what is the break even cost per kilowatt-hour
Light emitting diode (LEDs) light bulbs have become required in recent years, but do they make financial sense? Suppose a typical 60 watt incandescent light bulb costs $.48 and lasts for 1, 000 hours. A 15 watt LED, which provides the same light, costs $3.55 and lasts for 12, 000 hours. A kilowatt hour of electricity costs $.124. A kilowatt-hour is 1,000 watts for 1 hour. However, electricity costs actually vary quite a bit depending on location and user type. An industrial user in West Virginia might pay $.04 per kilowatt-hour whereas a residential user in Hawaii might pay $.25. You require a return of 10 percent and use a light fixture 500 hours per year. What is the break even cost per kilowatt-hour? (Do not round intermediate calculations and round your answer to 6 decimal places, e. g., 32.161616.)
Network Systems is introducing a new network card. Suppose Network Systems knows its fixed costs are $600,000, its variable costs are $500 per card, and it must sell 15,000 cards to break even the first year. What is the minimum price per unit it should charge
A set of four “100-year,” sixty (60) watt light bulbs costs $24.95. If H equals the annual number of hours the bulb is used, each bulb provides 100Hhours of light, and the efficiency of each bulb is 80%. A set of four, sixty (60) watt standard bulbs costs $2.60. Each standard bulb provides H hours of light and the efficiency of each bulb is 95%. If the cost of electricity is $0.0574/kWh, how many hours of operation each year will make the costs of the two types of bulb breakeven? Your personalMARR is 5% per year. Assume repeatability. State other realistic assumptions you must make.
1. A recently retired professor, Melinda Marketing, plans to establish the Hot-Air FanCompany and manufacture circulating fans. She estimates the fixed cost of operations tobe $357,500 annually. The variable cost of producing the fans is forecasted to be $85 perunit.a. How many fans must be sold to break even if the fans are priced at $150?b. If Hot-Air sells 6,000 fans, what will be the EBIT?c. If Hot-Air sells 6,000 fans and has interest expense of $8,125, what is Hot-Air’stimes-interest-earned? Hot-Air does not have any nonoperating expenses.d. If the fans are priced at $150, what is Hot-Air’s breakeven sales? 2. Vapor Lock Motors’ EBIT is $7,000,000, the company’s interest expense is $2,000,000, and its tax rate is 40 percent. Vapor Lock’s beta is 1.5. a. What is Vapor Lock’s DFL? b. If Vapor Lock were able to grow its EBIT by 50%, what would be the percentage increase in net income? c. If Vapor Lock were able to grow its EBIT by 50%, what would be the resulting net income? 3. A…
Projects with different lives: Your company is deciding whether to purchase a high-quality printer for your office or one of lesser quality. The high-quality printer costs $40,000 and should last four years. The lesser quality printer costs $30,000 and should last three years. If the cost of capital for the company is 13 percent, then what is the equivalent annual cost for the best choice for the company? Round to the nearest dollar. $10,000, either vehicle $10,000, short-term vehicle $12,706, short-term vehicle $13,448, long-term vehicle
Four hundred pounds of copper are used in a typical 2,200-square-foot newly constructed house. Today’s copper price is $3.75 per pound. Solve, a. If copper prices are expected to increase 8.5% per year (on average), what is the cost of copper going to be in a new 2,400-square-foot house built 10 years from now? Use a cost-capacity factor of 1.0. b. To minimize building costs, do you think that another less-expensive material (e.g., aluminum) will be substituted for copper in the electrical wiring in new homes?
Metalfab Pump and Filter Inc. estimates that the cost of steel bodies for pressure valves will increase by $2 every 3 months. If the cost for the first quarter is expected to be $80, what is the present worth of the costs for a 5-year time period at an interest rate of 1.1% per quarter? Please work out the problem, do not use excel, however if you must please show formulas and every thing thank you!
The efficiency of a 20 kW electric motor in an industrial facility is 65% and it works for 4200 hours a year. EnergyThe Engineer, who is working on efficiency, proposes replacing it with a 92% efficient motor with the same power. OldSince the price of the engine is 8500 dollars, the price of the new engine is 16500 dollars and the unit price of electricity is 115 cents/kWh;what would you do if it were you? (Energy saving, answer by calculating the payback period of the invested money.)

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