What will the optimal duration of the downtime in years ? a.None is correct b. 0.076 c. 0.069 d. 0.721 e. 0.065 O f. 0.502

Q: Example: A new process for a manufacturing process will have a first cost of $55,000 with annual…

A: Payback period= First costs / Annual cash flowIt doesnt take into consideration time value of money

Q: Hang Coffee uses high-end coffee roasting machines that cost $30,000 to purchase plus $5,000 per…

A: Initial cost= $30,000Maintenance cost= $5,000Required return= 18%Number of years= 4 years

Q: 4. Wheel Division of TG Corporation has the capacity for making 80,000 wheel sets per year and…

A: Acceptable Transfer Price Range=Minimum Acceptable Tranfer Price to Maximum Acceptable Tranfer Price

Q: The monthly demand for ice cans being manufactured by Mr. Cruz is 3,500 pieces. With a manually…

A: Make or buy decision: It is the act of selecting between  making  a product or buy  it from an…

Q: A chemical company produces chemicals for lawn fertilizer. The annual demand for this product, which…

A: Answer : From Given data h = (0.34)* 3.5 = 1.19 unit/year And given that per day production is 10000…

Q: The cost of producing a small transistor radio set consists of P23.00 for labor and P 370.00 for…

A: Given, The selling price of radio set is P750. Fixed cost P100,000. Labor cost P23 and material is…

Q: Handheld fiber optic meters with white light polarization interferometry are useful for measuring…

A: Break Even Point (BEP) :— It is the point at which total cost is equal to total revenue. At this…

Q: Gateway Construction Company, run by Jack Gateway, employs 25 to 30 people as subcontractors for…

A: Given as,

Q: Machine A has a fixed cost of P40,000 per year and a variable cost of P6 per unit. Machine B has an…

A: Since both machines break even at 2,000 units, total cost of both Machines will be equal at…

Q: 3. A firm has production capacity of 500 refrigerators per month and its fixed costs are P2,750,000…

A: The break even sales are the sales where business earns no profit no loss during the period.  The…

Q: A fixture that cost 800 will save P0.07 per item produce. Maintenance will be at 50 annually. 3600…

A: Answer) Calculation of Payback period   Year  Annual Net cash flow Present Value Factor @…

Q: To solve the bid price problem presented in the text, we set the project NPV equal to zero and found…

A: Excel formula:Solution:

Q: The purchase price of the machine required to produce a certain part is $ 40000, the maintenance…

A: Breakeven point occurs when there is a situation of no profit no loss exists.

Q: Anderson Inc. uses packing machines to prepare their product for shipping. One machine costs…

A: Present value annuity factor is computed as follows:-PVAF = where,, 99, 254); position: relative;…

Q: Calculate the lifetime cost per unit and, through the use of target costing, identify any cost gap.…

A: It has been given in the question that any product which is new has be marked up by 35% in order to…

Q: vour options for shipping Sa00.000 of machine parts from Hamilton to Malaysia, are use a ship that…

A: Daily holding cost = 28 Difference in cost per day shipping cost = 98

Q: A new process for manufacturing laser levels will have a first cost of $40,000 with annual cost o…

A: The payback period is used to determine how long it will take an investment to make back its initial…

Q: 7.  HEA ltd sells 2,000 bags of cement each year. It is estimated that the cost of holding one bag…

A: EOQ is one of the oldest methods of inventory management where the total holding costs and ordering…

Q: Champion Bakers uses specialized ovens to bake its bread. One oven costs $1000,000 and lasts about 4…

A: First cost (X) = $1000000 Annual cost (A) = $10000 n = 4 years r = 17%

Q: Oman cables SAOG normally expects a mark-up on cost of 40% and the company decided to produce a new…

A: The target price of the product is based on the cost of the product and the required mark up on the…

Q: 4. You will need to replace your quadcopter manufacturing system in seven years. You estimate the…

A: Let the no. of quadcopters that will be sold each year be "x". Total profit on each unit  = 550…

Q: use a ship tha truck the part econd option will t holding cost is esti

A: Daily holding cost = 28 Difference in cost per day shipping cost = 98

Q: 4. Your company is producing 750,000 units a year. All 750,000 units sell for P10 million. If cost…

A: Break even point means a situation where the is neither profit nor loss. Sales revenue is sufficient…

Q: Process A has a fixed cost of $16,000 per year and a variable cost of $40 per unit. For process B, 5…

A: We have been given that ,  For process A   Fixed costs = $16,000 variable costs = $40 / unit   For…

Q: b) If the selling price increases by 10% calculate the increase in the net profit at the whole…

A: The Question is related to Marginal costing and it will be solved accordingly.

Q: Wrangler Western has some of its jeans stone-washed under a contract with an independent contractor,…

A: The present worth of the machine is operating cost is the present value of all future cash outflow

Q: The process for producing a fruit-tree pesticide has a first cost of $200,000 with annual costs of…

A: PAYBACK PERIOD The payback period method is a technique used in capital budgeting for calculating…

Q: mni.3

A: Calculate the Annual Cash FlowCash Flow=(Revenues-Costs-Depreciation)*(1-t)…

Q: company is considering the end of the year rental of a copying machine that costs P 1,000 the first…

A: Present value concept means that with the passage of time, value of the amount will decrease due to…

Q: Dishman Ltd plans to sell 200,000 items a year for £15 each. Fixed costs are £360,000 a year and…

A: Margin of safety is the difference between the actual sales for the current period and the break…

Q: Max's Brakes is introducing a new revolutionary brake-pad for vehicles that will never wear out.…

A: Cash fixed expense per year is $1500 Depreciation expense is $600 The selling price is $100 The…

Q: ch time its market value will be 5% of its purchased cost. The equipment rate an annual receipts…

A: Internal rate of return at which present value of cash flow is equal to initial investment.

Q: Homesaver Ltd believes it can sell 10,000 home smoke detectors per year at Rs30 each. They cost Rs20…

A: NPV concept shall be used for determining the viability of the proposal. NPV is the difference…

Q: 4. Konica Minolta plans to sell a copier that prints documents on both sides simultaneously, cutting…

A: Internal rate of return(IRR): It is the discount rate  where  the net present value  of a project…

Q: Process A has a fixed cost of Php 120 000 per year and a variable cost of Php 210 per unit. For…

A: We can determine the Total costs using the formula below:Total Costs = Fixed costs + (variable cost…

Q: and alternative 2 is to purchase from outside. Determine the break-even qua between the two…

A: Breakeven quantity is where the there is no profit and no loss and there is no difference between…

Q: What is the minimum number of loaves that must be sold per year

A: Minimum order quantity for an Investment is the one, at which cost of an investment meets the…

Q: Barker Production Company is considering the purchase of a flexible manufacturing system. The annual…

A: ..

Q: A new process for a manufacturing process will have a first cost of $45,000 with annual costs of…

A: Discounted payback period is an important capital budgeting tool. Here we firstly discount all the…

Q: Calculate the IRR of the previous project. Justify for what type of discount this investment will be…

A: This is not the follow-up question as the question which of follow up has been solved and there have…

Q: Required information A process for producing the mosquito repellant Deet has an initial investment…

A: As per the given information:Initial investment - $165,000Annual costs - $43,000Income - $93,000

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.