A company is going to buy a new equipment for manufacturing its product. Four different equipment's are available; costs, operating and other 4. expenses are as follows: Equipment A B D First Cost Php 24,000 Php 30,000 Php 49,600 Php 52,000 Power per year Php 1300 Php 1360 Php 2400 Php 2520 Labor per year Php 10,600 Php 9320 Php 4200 Php 2700 Maintenance/year Php 2800 Php 1900 Php1300 Php 700 Taxes & Insurance 2% 2% 2% 2% Life; years 5 5 5 Money is worth 10% before taxes to the company. Which equipment should be purchased ? Choose which method is applicable.

A company is going to buy a new equipment for manufacturing its product. Four different equipment's are available; costs, operating and other 4. expenses are as follows: Equipment A B D First Cost Php 24,000 Php 30,000 Php 49,600 Php 52,000 Power per year Php 1300 Php 1360 Php 2400 Php 2520 Labor per year Php 10,600 Php 9320 Php 4200 Php 2700 Maintenance/year Php 2800 Php 1900 Php1300 Php 700 Taxes & Insurance 2% 2% 2% 2% Life; years 5 5 5 Money is worth 10% before taxes to the company. Which equipment should be purchased ? Choose which method is applicable.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A company produces two products, product A and product B. Both products are produced by using similar machines and similar methods. The indirect costs of the company are 45 000 €/year. More information regarding product A and product B: Product A Product B Produced items 250/year 7000 items/year Labour hours 2h/item 3h/item Calculate how the indirect costs of the company should be accumulated into two different products, product A and product B. Your answer:
Need help
Management Science: XY Company manufactures and sells LCD monitor at P5000 each. The production officer reported the following: Sale price: P5000 per monitor direct materials cost: P1000 per unit direct labor cost: P550 per unit other overhead cost P950 per unit Fixed costs related to the production are also reported: salary of management: P200,000 rent for the factory: P150,000, other salaries: P140,000 depreciation of equipment: P12,000Compute the profit function
Munoz Company makes and sells lawn mowers for which it currently makes the engines. It has an opportunity to purchase the engines from a reliable manufacturer. The annual costs of making the engines are shown here. Cost of materials (13,100 Units × $19) $ 248,900 Labor (13,100 Units × $12) 157,200 Depreciation on manufacturing equipment* 25,000 Salary of supervisor of engine production 69,000 Rental cost of equipment used to make engines 27,000 Allocated portion of corporate-level facility-sustaining costs 82,000 Total cost to make 13,100 engines $ 609,100 *The equipment has a book value of $108,000 but its market value is zero.Required Determine the maximum price per unit that Munoz would be willing to pay for the engines. Determine the maximum price per unit that Munoz would be willing to pay for the engines, if production increased to 18,650 units. (For all requirements, Round your answers to 2 decimal places.)
Help
Exercises The salary for a plant supervisor for a manufacturing facility is $120,000 per year. The plant's capacity is 300,000 units per year. Required 1. Prepare a table that shows how the cost of supervision behaves in total and on a per-unit basis as production increases from 0 to 250,000 units per year, using 50,000-unit increments. 2. How would you classify the behavior of the cost of supervision?
Jumbo Co. sells a special toy product in Hong Kong. The cost information for the current year is as follows: Direct materials at $12 per poundDirect labour at $10 per hourVariable manufacturing overheadsVariable selling and administrative overheads Fixed manufacturing overheads Fixed selling and administrative overheads 2 pounds per unit 4 hours per unit$5 per direct labour hour $18 per unit $2,000,000 per year $1,000,000 per year A supplier selling production machines has offered Jumbo Co. a new model of the machine which can improve productivity by reducing one hour of labour time per unit. The renting cost of this new machine will incur an extra cost of $45,000 per month. Currently the annual sales quantity is 60,000 units and the selling price is $300 each. Your manager is seeking your advice for the replacement of the machine. Required: (a) Calculate the change in Net Profit resulting from the replacement of the machine. Indicate whether it is an Increase or a…
Oman Refinery company's is planning to setup a new unit in Ibri. For setting up of new unit in Ibri, the company's total overheads OMR 100,000 cost relating to setups 50% costs relating to inspections 50% Number of Setups 100 Number of Inspections 50 Calculate the setup cost driver rate a. OMR 500 b. OMR 750 C OMR 1500 d. OMR 1000
CoEd Novelties manufactures key chains for college bookstores. During 2003, the company had the following costs: Direct Materials used Direct Labor Factory Rent Equipment Depreciation - Factory Equipment Depreciation - Office Marketing Expense Administrative Expense Given the data in Problem 2A, Determine the total Period Cost for the 35,000 units produced. Php43,250.00 Php40,000.00 Php45,250.00 Php1.40 per unit Php31,000.00 18,000.00 12,000.00 2,000.00 750.00 2,500.00 40,000.00
show answers for letters A and B
Finance
A company produces three components on the same machine. The components are used i the manufacture of a finished product. The budget for next year indicates a requirement for 3,000 units of each component, but only 60,000 hours of machine time will be available. Additional components can be purchased from an external supplier to meet any production shortfall. Component Machine hours per unit A B с 9 5 O $537,000 O $543,000 O $549,000 O $553,000 12 Show Transcribed Text Variable production cost per unit $ per unit 45 70 56 Purchase price from external supplier $ per unit 65 78 80 What is the minimum total variable cost at which the 3,000 units of all three components can be obtained?