Tutor, Incorporated (TI) provides instructional services to its customers. TI charges $240 per student. The Company expects to serve 700 students during the coming year. All of the Company's expenses are fixed. Total annual fixed costs are projected to be $80,000. If the estimated number of students decreases by 10%, net income will

Currently, OET Corporation sells 350,000 units of widgets a month at a price of $21 a unit. The company currently has a net 30 credit policy. Mr. Ent, the company's financial manager, is evaluating a new credit policy of net 60 for the company. The marketing manager thinks that sales would increase by 10,000 units per month if the company were to switch to the new credit policy. The APR for OET is 13% compounded monthly, and its variable cost per widget is $12. Ignore taxes. Tomorrow, Mr. Ent will be making a presentation on the new proposed credit policy to the CEO of OET. He will be expected to provide answers to the following questions. The net present value of the proposed credit policy switch is O a. $837,692.31 O b. $437,295.90 O $783.926.13 O d. $592,032.32 O. e. $639,284.55

Suppose you are the human resource manager for a cellular phone company with 700 employees. Top management has asked you to implement three additional fringe benefits that were negotiated with employee representatives and agreed upon by a majority of the employees. These include group term life insurance, a group legal services plan, and a wellness center. The life insurance is estimated to cost $390 per employee per quarter. The legal plan will cost $312 semiannually per employee. The company will contribute 40% to the life insurance premium and 75% to the cost of the legal services plan. The employees will pay the balance through payroll deductions from their biweekly paychecks. In addition, they will be charged  1 4 %  of their gross earnings per paycheck for maintaining the wellness center. The company will pay the initial cost of $800,000 to build the center. This expense will be spread over 5 years. (a) What total amount should be deducted per paycheck for these new…

Raveen Products sells camping equipment. One of the company’s products, a camp lantern, sells for $90 per unit. Variable expenses are $63 per lantern, and fixed expenses associated with the lantern total $135,000 per month. At present, the company is selling 8,000 lanterns per month. The sales manager is convinced that a 10% reduction in the selling price will result in a 25% increase in the number of lanterns sold each month. If proposed changes by sales manager implementted, then How many lanterns would have to be sold at the new selling price to yield a minimum net operating income of $72,000 per month?

Your firm spends $5,000 every month on printing and mailing​ costs, sending statements to customers. If the interest rate is   0.5% per​ month, what is the present value of eliminating this cost by sending the statements​ electronically?

A plastic manufacturing company that makes four major products seeks to expand its operations in the coming year. At the beginning of the financial year, the company must decide on which of four new machines A, B, or C to purchase to be able to meet total annual demand. Each machine operates 14 hours a day, 360 days a year. Machine A costs GH¢43,000, machine B costs GH¢37,500 and machine C costs GH¢75,000. The following product forecasts and processing times have been projected:                      Demand,                     units/year               Processing times per Unit (Minutes) Product                              Machine A         Machine B             Machine CPenholders        16,000             5                         3                         6Bowls                14,000             4                          3                         5Cups                   6,000             6                         5                         7Carrier Bags      24,000            3…

It is the first of October, and you are developing cost estimates for creating an engineering consulting business with a small group of friends. Liability insurance beginning January 1 will cost $475 per month, payable at the beginning of each month. What is the PW of this insurance for the first year as of today’s date? The firm’s MARR is a 12% nominal annual rate.

Suppose you are the human resource manager for a cellular phone company with 700 employees. Top management has asked you to implement three additional fringe benefits that were negotiated with employee representatives and agreed upon by a majority of the employees. These include group term life insurance, a group legal services plan, and a wellness center. The life insurance is estimated to cost $390 per employee per quarter. The legal plan will cost $468 semiannually per employee. The company will contribute 40% to the life insurance premium and 75% to the cost of the legal services plan. The employees will pay the balance through payroll deductions from their biweekly paychecks. In addition, they will be charged  1 4 %  of their gross earnings per paycheck for maintaining the wellness center. The company will pay the initial cost of $900,000 to build the center. This expense will be spread over 5 years. (a) What total amount should be deducted per paycheck for these new…

Hydro Systems Engineering Associates, Inc., provides consulting services to city water authorities. The consulting firm’s contribution-margin ratio is 15 percent, and its annual fixed expenses are $245,000. The firm’s income-tax rate is 30 percent.a. Calculate the firm’s break-even volume of service revenue.b. How much before-tax income must the firm earn to make an after-tax net income of $138,000?c. What level of revenue for consulting services must the firm generate to earn an after-tax net income of $138,000?d. Suppose the firm’s income-tax rate changes to 20 percent. What will happen to the break-even level of consulting service revenue?

A 90-room motel has an average room rate of $64 and average occupancy of 77%. Its fixed costs are $800,000 a year, and its variable costs total $500,000. The owner wants to increase operating income from current level to $250,000. She decides to do the following adjustments: increase price by $6 spend $30,000 more per year on marketing to compensate for the higher room rate To motivate the staff, the owner also set a $2,000 reward to the best employee Send guest fruits to each room, which costs $5 per room How many rooms does she need to sell per night?