You are a business analyst who develop solutions to some farm business problems. One of the difficulties in maintaining a farm is the existence of harmful pests. You were able to find out that the cost ? in pesos of removing ? amount (in percent) of pests is given by the equation P = 500 000x / (1 - x). Make a business presentation that includes the following: a. Cost in removing 25%, 50%, and 75% of pests b. Amount of pests removed with the following conditions: - Cost will be no more than ₱750,000 - Cost will be ₱2,000 000 or less - Cost will not go beyond ₱4,500 000
Q: Tim's Corp. is considering whether to overhaul an older machine or buy a newer more efficient…
A: Net Present Value is the sum of the discounted value of the future expected cash flows. In this…
Q: You are a manager at Percolated Fiber, which is considering expanding its operations in synthetic…
A: Here, Cost of Capital is 10% Cost of the Equipment is $19,000,000 Working Capital is $7,000,000 Part…
Q: You are a manager at Percolated Fiber, which is considering expanding its operations in synthetic…
A: Net present value is the most important capital budgeting technique which helps in the decision…
Q: Lou Lewis, the president of Lewisville Company, has asked you to give him an analysis of the best…
A: Evaluating alternatives: When a company is faced with the choice of two alternatives, both…
Q: A chemical company spent $480,000 to produce 144,000 gallons of a chemical, which can be sold for…
A: When there are two alternatives either to sell the product as it is or it should be further…
Q: 'ou are a manager at Northern Fibre, which is considering expanding its operations in synthetic…
A: Here, Cost of Project is $24 millions Net Income of Project is $4.732 million Depreciation is 2.400…
Q: You are a manager at Percolated Fiber, which is considering expanding its operations. Your boss said…
A: Depreciation is a non cash expenses. So this expense should be added back to calculate the free cash…
Q: A chemical company spent $531,000 to produce 151,000 gallons of a chemical that can be sold for…
A: Formula: Increase in Net operating income = Increase in Revenue - increase in Processing costs.…
Q: Your manager has asked you to advise your client Kofi Gyato, owner and director of Kofi Gyato…
A: Depreciation means the amount of expenses due to usage of fixed assets due to normal wear and tear…
Q: You are a manager at Permeable Fiber, which is considering adding a new product line. Your boss said…
A: Relevant cash flows while evaluating a capital project are the cash flows, to be resulted due to the…
Q: Your boss had requested you to select the best design that will give the best profit to the company.…
A: The best alternative is the one with the highest NPV. NPV = Present value of future cash flows -…
Q: Assume that Rolando Corporation is considering the renovation and/or replacement of some of its…
A: Particulars Amount Cost of new equipment $600,000 Less: Proceeds from sale of old…
Q: A firm is trying to choose between two machines to manufacture a new line of office furniture. The…
A: IRR is the internal rate of return. It is the rate of return at which Net present value is equal to…
Q: Your cousin has created a business specialised in 3-D printing of metal spare parts for repair…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: It is planning to reduce its labor costs by automating a critical task that is currently performed…
A: Present value means the actual amount is adjusted with the interest rate so as to get the present…
Q: The production department is proposing the purchase of an automatic insertion machine. It has…
A: Calculate the average rate of return as follows: Average rate of return = Average net income /…
Q: Your cousin has created a business specialised in 3-D printing of metal spare parts for repair…
A: Capital budgeting Capital budgeting is a concept in which evaluation of major projects is…
Q: Mr. Jones also considers improving the production efficiency of his company. He realizes if he rents…
A: working note : note: (variable) manufacturing overhead / (fixed ) manufacturing overhead cost…
Q: marginal (added) benefits of the proposed new equipment
A: Marginal cost-benefit analysis is a management accounting tool helps to determine the advantage of…
Q: A chemical company spent $530,000 to produce 152,000 gallons of a chemical that can be sold for…
A: In case of process costing, product has to go through several processes in order to become final…
Q: A firm is trying to choose between two machines to manufacture a new line of office furniture. The…
A: given, machine B initial cost = $12000 LIFE = 3 YEARS salvage value = $3000 annual operating expense…
Q: Your company is upgrading to more efficient production equipment for your firm’s only product. This…
A: Initial investment is the amount required to start a business or a project. In Capital Budgeting…
Q: Suppose your company has just found $100,000 worth of outdated inventory in an old warehouse (this…
A: The decision to resell or scrap inventory is done based on the profitability of both options. The…
Q: n a cost center, the manager has responsibility and authority for making decisions that affect a.…
A: solution note Dear student as per the Q&A guideline we are required to answer the first question…
Q: Noor Taxis Co. owns and runs 350 taxis and had sales of OMR 10 million in the last year. Noor Taxis…
A: Solution- Cost of implement 2100000 Relevant Depreciation 420000 irrelevant…
Q: Suppose that you are the manager of a studio cafe, and you are planning to invest on a new camera…
A: Incremental revenues and costs are the difference between the current situation and projected sales…
Q: A firm is trying to choose between two machines to manufacture a new line of office furniture. The…
A: Capital Budgeting: Capital budgeting decisions are the most important decision in corporate…
Q: You are a manager at Northern Fibre, which is considering expanding its operations in synthetic…
A: Net Present Value (NPV): Net present value is defined as the summation of the present value of cash…
Q: Your cousin has created a business specialised in 3-D printing of metal spare parts for repair…
A: IRR is used to evaluating the projects. At IRR, NPV is equal to 0 means PV of positive cashflows…
Q: An automobile manufacturer is considering a change in an assembly line that should save moneyby…
A:
Q: Required: 1. Determine the company’s current fixed costs. 2. Determine the company’s new…
A:
Q: If the farmer uses pesticides he expects a crop of 60,000 bushels; if he does not use pesticides he…
A: If the farmer uses pesticide and decides to sell the crop at harvest, the expected profit will be if…
Q: Assume that Rolando Corporation is considering the renovation and/or replacement of some of its…
A: Particulars Amount Cost of new equipment $600,000 Less: Proceeds from sale of old…
Q: Which of the following is an example of a sunk cost? Select one: a. The firm pays to replant trees…
A: Sunk cost are the costs which incurs regardless of the project being undertaken or not.
Q: You are a manager at Percolated Fiber, which is considering expanding its operations. Your boss said…
A: Depreciation is a non cash expenses. So this expense should be added back to calculate the free cash…
Q: A businessman wants to set up a factory in an area. Now, The entrepreneur is looking for the best…
A: The expected return is the return that the investor expects to get after the completion of this…
Q: You are a manager at Northem Fibre, which is considering expanding its operations in synthetic fibre…
A: Free Cash Flow: It is the amount by which operating cash flow of business exceeds its working…
Q: A sugar mill has the policy that in order to decide to evaluate a new investment, it must have a…
A: Capital budgeting is a technique to evaluate a project regarding its acceptability. There are many…
Q: In trying to decide whether or not to replace a sorting/baling machine in a solid waste recycling…
A: The Defender is the currently owned (in place) item and Challenger is the new possible replacement…
Q: The production department is proposing the purchase of an automatic insertion machine. It has…
A: Ratio analysis: This is the quantitative analysis of financial statements of a business enterprise.…
Q: You are a manager at Percolated Fiber, which is considering expanding its operations in synthetic…
A: The value of any project or Investment is equal to present value of all future free cash flows over…
Q: You were asked to answer the following question: Consider a small photography studio with 8 workers…
A: Cost refers to the amount that is spent to obtain a final product from the manufacturing unit or by…
Q: A company has an inventory of 1,300 assorted parts for a line of missiles that has been…
A:
Q: Suppose your company has just discovered $100,000 worth (this is the original manufacturing cost) of…
A: Profit on re-machine; $60,000-$30,000 =$30,000 profit on scrap out: Expected profit $15,000
Q: A company intends to install new management software for its warehouse. The software will cost…
A: The benefit in the first year is the total reduction through reduction in staff as well as general…
Q: You are a manager at Northern Fibre, which is considering expanding its operations in synthetic…
A: Net Present Value (NPV): Net present value is defined as the summation of the present value of cash…
Q: Two neighbouring farmers can use either high or low quantities of fertilizer. If they both use low…
A: Pesticides are designed to control the nuisance and damage caused by pests, and have contributed to…
You are a business analyst who develop solutions to some farm business problems.
One of the difficulties in maintaining a farm is the existence of harmful pests.
You were able to find out that the cost ? in pesos of removing ? amount (in
percent) of pests is given by the equation P = 500 000x / (1 - x). Make a business
presentation that includes the following:
a. Cost in removing 25%, 50%, and 75% of pests
b. Amount of pests removed with the following conditions:
- Cost will be no more than ₱750,000
- Cost will be ₱2,000 000 or less
- Cost will not go beyond ₱4,500 000
Step by step
Solved in 4 steps
- A businessman wants to set up a factory in an area. Now, The entrepreneur is looking for the best regional alternative that he thinks will profitable for his business, based on the survey results, area A has a probability of 0.8 to get a profit of IDR 5,000,000, if the company fails then will experience a loss of IDR 650,000. The second area is area B with 0.7 probability to get a profit of Rp. 5,500,000, if the company fail, you will get a loss of IDR 700,000. Based on this data, which locations are most advantageous?CleanTech manufactures equipment to mitigate the environmental effects of waste. (a) If Product A has fixed expenses of $15,000 per year and each unit of product has a $0.20 variable cost, and Product B has fixed expenses of $5000 per year and a $0.50 variable cost, at what number of units of annual production will A have the same overall cost as B? (b) As a manager at CleanTech what other data would you need to evaluate these two products?please choose the correct answer Imagine you are a manager. Your company has an opportunity to venture out into a new market with a new product. However, your current resources are limited. In order to take the opportunity, you need to discontinue the production of one of your existing products. Your company’s accountant provided you with the following information to help you decide which product to discontinue. Product A Income 5,000,000 Expenses 4,800,000 Product B Income 3,500,000 Expenses 2,275,000 Product C Income 2,100,000 Expenses 630,000 A. Product AB. Product BC. Product CD. All them
- The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which one has the best average rate of return. Machine A Machine B Machine C $83,087.40 $73,001.40 322,364.00 276,958.00 486,676.00 Estimated average income $45,130.96 Average investment Oa. Machine B Ob. Machine C Oc. Machine A Od. Machines B and C have the same preferred average rate of return.Carizick Co manufactures gaming products. It has created a new games console called the QpBox which is about to be launched. Demand for the QpBox is anticipated to be high. The product life cycle of the QpBox is expected to be three years with 300,000 units forecast to be sold during its first year. Sales volumes are expected to decrease by 75,000 units in each subsequent year. Production volumes will be based on expected demand levels. The following costs for the QpBox have been determined: Design and development Pre-launch advertising Advertising in Year 2 Packaging Manufacturing cost $120m $0.5m $0.4m $3 per unit $80 per unit At a recent board meeting, the finance director said that Carizick Co should look to maximise the profitability of the QpBox over its life cycle. The marketing director made the comment that Carizick Co should focus on extending the maturity phase of the life cycle only as this stage is where the QpBox is most profitable. Contract with Zone Co Carizick Co has…Suppose that you have been given a summer job as an intern at Issac Aircams, a company that man- ufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help it finance its growth. The bank requires financial statements before approving such a loan. You have been asked to help prepare the financial statements and were given the following list of costs: Depreciation on salespersons’ cars. Rent on equipment used in the factory. Lubricants used for machine maintenance. Salaries of personnel who work in the finished goods warehouse. Soap and paper towels used by factory workers at the end of a shift. Factory supervisors’ salaries. Heat, water, and power consumed in the factory. Materials used for boxing products for shipment overseas. (Units are not normally boxed.) Advertising costs. Workers’ compensation insurance for factory employees. Depreciation on…
- SnowDelight operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. (Click the icon to view the information.) Read the requirements. Requirement 1. If SnowDelight cannot reduce its costs, what profit will it earn? State your answer in dollars and as a percent of assets. Will investors be happy with the profit level? Complete the following table to calculate SnowDelight's projected income Revenue at market price Less: Total costs Operating income Requirements 1 If SnowDelight cannot reduce its costs, what profit will it earn? State your answer in dollars and as a percent of assets. Will investors be happy with the profit level? 2 Assume SnowDelight has found ways to cut its fixed costs to $36.000,000 What is its new target variable cost per skier/snowboarder?USING 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?Pet Hotel, Inc. operates three luxury pet boarding facilities and expects the following results for the coming year. {picture} Answer each of the following questions independently. 1. Fixed costs are all allocated and unavoidable. What will happen to profit if Pet Hotel discontinues operations at Pet Spa? 2. Suppose now that $25,000 of the fixed costs shown for Pet Spa is avoidable. What will happen to total profits if Pet Hotel discontinues operations at Pet Spa?
- The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which one has the best average rate of return. Machine A Machine B Machine C Estimated average income $48,288.80 $77,802.90 $72,428.85 Average investment 344,920.00 259,343.00 482,859.00 a. Machine B b. Machine C C. Machine A d. Machines B and C have the same preferred average rate of return.The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which one has the best average rate of return. Machine A Machine B $45,730.58 $60,103.80 326,647.00 200,346.00 Ca, Machines B and C have the same preferred average rate of return b. Machine C C. Machine 11 d. Machine A Estimated average income Average investment Machine C $74,639.55 497,597.00Give typing answer with explanation and conclusion 1. Discuss your reaction for the following mental accounting scenarios Question 3—Part A: Suppose that you've taken half a day off work to shop for a new, ride-on lawn mower. You have a big yard, and trimming it with your current, push-propelled mower simply takes too long. You have been eyeing the Model A300, which offers all the features you require at a cost of $2,000. As luck would have it, you won $500 the previous evening playing bingo at your local Rotary Club. When you arrive at the lawn mower shop, you notice that they also stock Model A305, which has some fancy, desirable new options. This premium model costs $2,250. Considering the previous night's winnings, will you indulge yourself by purchasing the A305? a. yes. b. no.