Morgan Inc. manufactures ergonomically correct office chairs. They have a contribution margin of $110,000 and fixed expenses of $28,500. They are adding a warehouse space that will add $20,000 to their fixed expenses. What is their DOL after adding this new expense? O 2.50 O 1.35 O 1.79 O 2.27
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- A Company wants to introduce new product. The estimated price of each mobile phone is RO 60. The company requires a profit margin of 20% on sales. The estimated cost of manufacturing the product is : Material cost : RO 9.500 Labour Cost : RO 12.750 Other Direct Expenses : RO 7.500 Administrative Costs : RO 5.000 Marketing and Selling expenses : RO 15.000 Calculate the Target Cost of the product and the Target Cost Gap.Most Visited Getting Started Getting Jumpy With... Bash Bunny Docum.... GitHub - hak5/bash... Bunny Toolkit - Home Alice's company has a machine that can produce a maximum of 2722 components annually. She sells each component for $65. The company's fixed costs are $35,120 per annum, and the variable costs are $25 per component. a) Calculate the number of components the company needs to sell per annum to break-even. components b) Calculate the break-even in dollars (round off to the nearest cent). $ c) Calculate the break-even as a percent of capacity (round off to the nearest percent). % d) If Alice produced and sold 1047 components in a year, what was the profit made or loss incurred? O profit loss e) if the company wants to make a profit of $69,000 per year, how many components does it need to sell? components Reset Wifi Pineappl... Initial SeturCox Electric makes electronic components and has estimated the following for a new design of one of its products: Fixed Cost $10,000 Material cost per unit = $0.15 Labor cost per unit = $0.10 Revenue per unit = $0.65 Show Transcribed Text Implement your model from part (b) in Excel using the principles of good spreadsheet design and find the profit if Cox Electric makes 18,000 new product. If required, round your answer to nearest whole number. For subtractive or negative numbers use a minus sign. (Example: -300)
- Hint(s) Check My Work Cox Electric makes electronic components and has estimated the following for a new design of one of its products: Fixed Cost $9,000 == Material cost per unit = $0.15 Labor cost per unit = $0.10 Revenue per unit = $0.65 Production Volume = 12,000 Per-unit material and labor cost together make up the variable cost per unit. Assuming that Cox Electric sells all that it produces, build a spreadsheet model that calculates the profit by subtracting the fixed cost and total variable cost from total revenue, and answer the following questions. (a) Construct a one-way data table with production volume as the column input and profit as the output. Breakeven occurs when profit goes from a negative to a positive value; that is, breakeven is when total revenue = total cost, yielding a profit of zero. Vary production volume from 5,000 to 50,000 in increments of 5,000. In which interval of production volume does breakeven occur? to units (b) Use Goal Seek to find the exact…M4 Engineering is considering an investment in one of two machines. The CNC machine will increase productivity from producing 150 airplane mounting clamps per hour to producing 290 per hour. The contribution margin per unit is $0.32 per clamp. Assume that any increased production of clamps can be sold. The second machine is an automatic packing machine. The packing machine will reduce packing labor cost. The labor cost saved is equivalent to $21 per hour. The CNC machine will cost $260,000, have an eight-year life, and will operate for 1,800 hours per year. The packing machine will cost $85,000, have an eight-year life, and will operate for 1,400 hours per year. M4 Engineering seeks a minimum rate of return of 15% on its investments. Calculate the NPV and PV index for both machines (the packing machine will have a higher PV index). Utilize the PV tables from chapter 11/ chapter 25 for your calculations. What machine should be purchased? Address both financial and non-financial reasons…A truck manufacturer can produce one more truck if it hires another employee for $40,000. It can also produce one more truck if it buys $50,000 worth of machinery. A truck sells on the market for $60,000. The truck manufacturer should a. Hire employees until the cost of the next employee equals the cost of buying machinery to produce another truck b. Buy machinery until the cost of buying machinery to produce another car equals the cost of hiring another employee С. Sell machinery and lay off employees d. Lay off employees and buy machinery e. None of the above
- The Borstal Company has to choose between two machines that do the same job but have different lives. The two machines have the following costs: Year Machine A $48,000 11,600 11,600 11,600+ replace OLZ3+ 0 1 2 4 Machine A Machine B Machine B $58,000 Annual Rental Payment 11, 200 11, 200 These costs are expressed in real terms. a. Suppose you are Borstal's financial manager. If you had to buy one or the other machine and rent it to the production manager for that machine's economic life, what annual rental payment would you have to charge? Assume a 12% real discount rate and ignore taxes. (Do not round intermediate calculations. Enter your answers as a positive value rounded to 2 decimal places.) 11,200 11,200 replaceUSING EXCEL SOLVER Based on Kolesar and Blum (1973). Suppose that a company must service customers lying in an area of A square miles with n warehouses. Kolesar and Blum showed that when the warehouse(s) are located properly, the average distance between a warehouse and a customer is (Ayn)1y2. Assume that it costs the company $90,000 per year to maintain a warehouse and $400,000 to build a warehouse. Also, assume that a $5,000,000 building cost is equivalent to incurring a cost of $500,000 per year indefinitely. The company fills 180,000 orders per year, and the shipping cost per order is $1.25 per mile. If the company serves an area of 120 square miles, how many warehouses should it have? Can the formulas also be shown?A company is planning to manufacture computer desks. The fixed cost will be $60,000 and it will cost $200 to produce each desk. Each desk will be sold for $450. a. Write the cost function, C, of producing x desks. b. Write the revenue function, R, from the sale of x desks. c. Determine the break-even point. Describe what this
- The Borstal Company has to choose between two machines that do the same job but have different lives. The two machines have the following costs: Year Machine A Machine B $51,000 0 $41,000 1 10,200 8,400 2 10,200 8,400 3 10,200+ replace 8,400 4 8,400 + replace These costs are expressed in real terms. a. Suppose you are Borstal's financial manager. If you had to buy one or the other machine and rent it to the production manager for that machine's economic life, what annual rental payment would you have to charge? Assume a 8% real discount rate and ignore taxes. (Do not round intermediate calculations. Enter your answers as a positive value rounded to 2 decimal places.) Answer is complete but not entirely correct. Annual Rental Payment Machine A $ 25,108.00 Machine B $ 24,561.00 > b. Which machine should Borstal buy? Machine A Machine BThe Borstal Company has to choose between two machines that do the same job but have different lives. The two machines have the following costs: Year Machine A Machine B 0 $ 41,000 $ 51,000 1 10,200 8,400 2 10,200 8,400 3 10,200+ replace 8,400 4 8,400 replace These costs are expressed in real terms. a. Suppose you are Borstal's financial manager. If you had to buy one or the other machine and rent it to the production manager for that machine's economic life, what annual rental payment would you have to charge? Assume a 8% real discount rate and ignore taxes. Note: Do not round intermediate calculations. Enter your answers as a positive value rounded to 2 decimal places. b. Which machine should Borstal buy? c. If there is steady 6% per year inflation, what will be the annual rental payment for machine B for the second year? Note: Enter your answer as a positive value rounded to 2 decimal places. a. Machine A a. Machine B b. Which machine should Borstal buy? c. Year 2 rental payment…Q.1 ChemCo has developed a new product, and has consulted with its marketing department, who have determined that the market share will be 20,000 units, and have recommended that a selling price of $60.00 per unit would be app- ropriate. ChemCo has been able to keep the cost per unit at $50.00. The company has spent a total of $900,000 to design and develop this product. Required: Use the above information to compute as follows: 1. Compute the expected margin for ChemCo 2. Compute the expected turnover 3. Compute the ROI Explain why it is necessary to do the above computations, and show how management can use this information for managing operations