A fiber company purchased base ingredients and produced a Petro Fiber for use in making air conditioning filters. The Petro Fiber can be sold at split-off or processed further. At the height of the pandemic, FEMA asked the company to shift 10,000 pounds of Petro Fiber toward the production of 25,000 face masks. The remaining 10,000 pounds of Petro Fiber is used to continue producing filters. 120,000 filters $0.40/filter Filters Joint Costs Base $50,000 Petro Ingredients Fiber 20,000 lbs @ $4.00/lb. Face 25,000 masks @ $2.50/mask Masks The incremental cost of processing the Petro Fiber was: Filters = $17,000, and Face masks = $20,000. To achieve the highest level of income, total sales for the fiber company would be?

A fiber company purchased base ingredients and produced a Petro Fiber for use in making air conditioning filters. The Petro Fiber can be sold at split-off or processed further. At the height of the pandemic, FEMA asked the company to shift 10,000 pounds of Petro Fiber toward the production of 25,000 face masks. The remaining 10,000 pounds of Petro Fiber is used to continue producing filters. 120,000 filters $0.40/filter Filters Joint Costs Base $50,000 Petro Ingredients Fiber 20,000 lbs @ $4.00/lb. Face 25,000 masks @ $2.50/mask Masks The incremental cost of processing the Petro Fiber was: Filters = $17,000, and Face masks = $20,000. To achieve the highest level of income, total sales for the fiber company would be?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Restoring balance to the nitrogen cycle is one of the challenges facing engineers. Improving the effectiveness and economical use of fertilizer has been identified as an important step in the right direction. Engineers have designed an improved way to transport fertilizer and then to apply it directly at the point where crops are grown. Further development, assessment, and optimization of the necessary equipment is estimated to require $235,000 in year 1, increasing by a gradient of $65,000 in each of years 2, 3, and 4. Then, it will begin to decrease by $75,000 in years 5, 6, 7, and 8. Interest is 14% per year.
Disregard the 9.7 in the box at the bottom
Janson Pharmaceuticals incurred the following costs in 2018 related to a new cancer drug:Research for new formulas $2,425,000Development of a new formula 1,600,000Legal and filing fees for a patent for the new formula 60,000Total $4,085,000The development costs were incurred after technological and commercial feasibility was established and afterthe future economic benefits were deemed probable. The project was successfully completed and the new drugwas patented before the end of the 2018 fiscal year.Required:1. Calculate the amount of research and development expense Janson should report in its 2018 income statementrelated to this project.2. Repeat requirement 1 assuming that Janson prepares its financial statements according to International Financial Reporting Standards.
Management of National Co. is considering whether to purchase a new model MX1 machine costing P460,000 or a new model MY2 machine costing P430,000 to replace a machine that was purchased 7 years ago for P258,000. The old machine was used to make product L360 until it broke down last week. Unfortunately, the old machine cannot be repaired. Management has decided to buy the new model MY2 machine. It has less capacity than the new model MX1 machine, but its capacity is sufficient to continue making product L360. Management also considered, but rejected, the alternative of simply dropping product L360. If that were done, instead of investing P430,000 in the new machine, the money could be invested in a project that would return a total of P411,000. In making the decision to buy the model MY2 machine rather than the model MX1 machine, the differential cost was:
Haverhill Electronics (HE) has offered to supply the county government with one model of its security screening device at “cost plus 25 percent.” HE operates a manufacturing plant that can produce 22,000 devices per year, but it normally produces 20,000. The costs to produce 20,000 devices follow. Total Cost Cost per Device Production costs: Materials $ 4,600,000.00 $ 230.00 Labor 5,600,000.00 280.00 Supplies and other costs that will vary with production 1,680,000.00 84.00 Indirect cost that will not vary with production 1,680,000.00 84.00 Variable marketing costs 760,000.00 38.00 Administrative costs (will not vary with production) 19,280,000.00 964.00 Totals $ 33,600,000.00 $ 1,680.00 Based on these data, company management expects to receive $2,100.00 (= $1,680.00 × 125 percent) per device for those sold on this contract. After completing 200 devices, the company sent a bill (invoice) to the government for $33,600,000 (= 200 devices × $2,100.00 per…
I got the answers but looking for the equations as to how I solved it
Two firms, A and B, each currently dump 50 tonnes of chemicals into the local river. The government has decided to reduce the pollution and from now on will require a pollution permit for each tonne of pollution dumped into the river. The government will sell 40 pollution permits for $75 each. It costs Firm A $100 for each tonne of pollution that it eliminates before it reaches the river, and it costs Firm B $50 for each tonne of pollution that it eliminates before it reaches the river. Between the cost of permits and the cost of eliminating pollution, the likely outcome is Firm A spends and Firm B spends cross out $4000; $3500 cross out O b. $3000; $2500 cross out O c. $3000; $3500 cross out O d. $4000; $2500 cross out O e. $5000; $2500 cross out O f. $5000; $3500
Walton Co. purchases the 400,000 compressors that it installs in its refrigerators from a Chinese company for the price of $26 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier.. However, the company's mechanical engineer is opposed to making the compressors because the production cost per unit is $28 as shown below: Per unit Total Direct material 9.00 Direct labor 7.00 Supervisor's salary 4.50 $18,00,000 Depreciation on machinery 2.50 Rent 1.00 400,000 Variable manufacturing overhead 4.00 $16,00,000 Total production cost 28.00 If Walton Co. decides to make the compressors, a supervisor would have to be hired (at a salary of $18, 00,000) to oversee production. However, the company does not need to purchase any new equipment. The rent charge above is based on space utilized in the plant. The total rent on the factory is $24,00,000 per period. Required: What is the…
PIM Industries Incorporated manufactures electronics components. Each unit costs $50 before the final test. The final test rejects, on average, 4% of the 64,000 units manufactured per year. The average rejection rate of the industry is 2%. A consultant has determined that poor lighting is the most likely cause of this high rejection rate. It would cost $195,000 to install adequate lighting in the assembly department, which would be useful for 5 years. With adequate lighting (which will cost an additional $6,900 of operating costs per year), the firm expects to reduce its rejection rate to no higher than the industry average. Required: 1-a. What would be the projected five-year impact on operating profit? Five-year projected effect on operating income 1-b. Based solely on the relevant cost analysis you performed, should the firm install the lighting? Yes O No