A local pest control company has purchased equipment costing $150,000 with an estimated lifetime of 7.5 years using straight line depreciation. Additional fixed costs per year are $100,000. Variable costs per pest control service are $40 and the price per unit averages $125. What will annual profit be if the company services 475 customers annually?
Q: CSB Tech, Inc. Has a beta of... please answer the financial accounting question
A: To determine the required return using the Capital Asset Pricing Model (CAPM), we can use the…
Q: What is the price earnings ratio on these financial accounting question?
A: The Price-Earnings (P/E) ratio is calculated using the formula: P/E Ratio = Market Price per Share /…
Q: general accounting is questions
A: To calculate the Return on Equity (ROE), we use the formula: ROE=EquityNet Income We can also…
Q: Beginning inventory??
A: Ending Inventory=Beginning Inventory+Purchases−Cost of Goods Sold (COGS)Since we don't have the…
Q: Account Que.
A: Correct Answer:e. Product cost concept Explanation:The Product Cost Concept refers to a costing…
Q: Don't want Ai Answer
A: 1. a. Systematic relationships create comprehensive oversightIntegrated control frameworks stress…
Q: Please give me true answer this financial accounting question
A: Step 1: Define Return on Assets (ROA)Return on Assets (ROA) is a financial performance metric that…
Q: Financial Accounting
A: Step 1: Define GoodwillGoodwill is an intangible asset that represents the excess amount paid for a…
Q: General Accounting question
A: Step 1: Define Book Value and Straight-Line DepreciationBook Value is the net value of an asset…
Q: All answer
A: Detailed explanation:When should cross dimensional analysis replace single focus review?a.…
Q: The Coyle Shirt Company manufactures shirts in two departments: Cutting and Sewing. The company…
A: Detailed explanation:1. Predetermined Overhead Allocation Rate Estimated Overhead Costs / Estimated…
Q: What is an estimate of steady company's cost of equity on these financial accounting question?
A: Step 1: Identify the given valuesBeta (β) = 0.24Risk-free rate (Rf) = 5.8%Market risk premium (Rm -…
Q: Jackson corporation reported a pretax book income of 520000?
A: Explanation of Book Equivalent of Taxable Income: Book equivalent of taxable income represents the…
Q: PLEASE HELPPP
A: Step 1:(a) First, calculate the present value of note: Present value of note = Future value * PV…
Q: The gross margin was
A: Calculation of Gross MarginGross Margin = Sales + December 31 Inventory - Purchases - January 1…
Q: Was received from customer during the year?
A: Step 1: Cash received from the customers during the year can be calculated by adding the Accounts…
Q: ans
A: The question requires the determination of the interest expense related to selling of bonds.…
Q: If a business has revenue of $677,000, cost of goods sold of $214,000, operating expenses of…
A: To calculate the net income, use the following formula:Net Income=Revenue−Cost of Goods…
Q: What was over or under applied manufacturing overhead in September?
A: Explanation of Manufacturing Overhead: Manufacturing overhead includes all manufacturing costs that…
Q: Give this question general accounting
A: Step 1: Definition of Owner's EquityOwner's equity refers to the portion of a business's assets that…
Q: Contribution margin is??
A: To calculate the break-even point, we use the formula: Break-even point = Fixed Costs / Contribution…
Q: How much was the material quantity variance?
A: Explanation of Material Quantity Variance:Material quantity variance measures the difference between…
Q: Hii expert I need this.question Ans please given answer general Accounting
A: Step 1: Define Degree of Operating Leverage (DOL)Degree of Operating Leverage (DOL) is a financial…
Q: Radium Tech Inc. has net sales of $320,000, cost of goods sold of $210,000, selling expenses of…
A: Step 1: Analysis of information givenNet sales = $320,000Cost of goods sold = $210,000Selling and…
Q: What is the cost per machine hour on these general accounting question?
A: Step 1: Define High-Low MethodThe High-Low Method is a cost estimation technique used to determine…
Q: ?? Financial accounting
A: Step 1: Define FICA TaxFICA (Federal Insurance Contributions Act) tax is a payroll tax imposed by…
Q: Need correct answer general Accounting question
A: Step 1: Calculation of equity multiplierStep 2: Calculation of return on assets
Q: Total assets are??
A: Explanation of Total Assets:Total assets represent the total value of everything a company owns that…
Q: A company has sales of $752,800 and a cost of goods sold of $301,800 Its gross profit equals…
A: Calculation of Gross Profit - Full Detailed ExplanationUnderstanding Gross ProfitGross Profit is the…
Q: The monthly cost (in dollars) of a data plan for Mercury Communications is a linear function of the…
A:
Q: Refer to the information given below: a. The June 30 cash balance in the general ledger is $1,940.…
A: Explanation of Adjustments:Bank Side:Deposit in Transit: The $800 deposit made late on June 30 is…
Q: Gross profit?
A: Explanation of Gross Profit:Gross profit is the amount a company earns after deducting the cost of…
Q: What is the future value of 17 periodic payments of $9,680 each made at the end of each period and…
A: To calculate the future value of an annuity (periodic payments made at the end of each period), we…
Q: Need answer
A: Accounting Questions - Answers with Explanation and Calculations: Step 1:Question 1 solution: Given…
Q: Please provide answer
A: Explanation of Average Selling Price: Average selling price represents the typical amount a business…
Q: What are the days sales in receivable? Solve this question general Accounting
A: To find the days' sales in receivables, we follow these steps:
Q: Expected manufacturing overhead:1200000, expected machine hours:25000
A: Explanation of Predetermined Overhead Rate: A predetermined overhead rate is a calculated rate used…
Q: How much is samul's disposal income?
A: To calculate Samuel's disposable income, we need to subtract the total deductions from his gross…
Q: General Accounting
A: Step 1: Define Days' Sales UncollectedDays' Sales Uncollected (DSU) measures how many days it takes…
Q: Need help
A: Step 1: Calculate Cost of Goods Manufactured (COGM)• COGM = Total Manufacturing Costs + Beginning…
Q: General Accounting Question Solution
A: Step 1:Interest is paid on March 1 and September 1 so at the year-end on December 31, for the 4…
Q: Variable overhead:392000, fixed overhead:98000
A: To compute the production cost per unit under absorption costing, we need to account for direct…
Q: Calculate the net income?
A: Explanation of Net Income:Net income is the amount of profit a company earns after subtracting all…
Q: ?? Financial accounting question
A: Step 1: Define Contribution MarginContribution Margin (CM) represents the amount remaining from…
Q: Please given correct answer general Accounting
A: Step 1: Define Implied Interest RateImplied Interest Rate acts as IRR for value of investment at two…
Q: net loss was......
A: Step 1: Net Income or loss can be calculated by rearranging the formula -Ending Capital = Beginning…
Q: Tutor, solve this Accounting problem
A: Explanation of Cost of Goods Sold (COGS): Cost of Goods Sold represents the direct costs…
Q: Please give me true answer this financial accounting question
A: Step 1: Define Stock ValuationStock valuation requires using the dividend growth model, constant…
Q: Need help with this financial accounting question not use ai
A: Step 1: Define Debt-Equity RatioThe debt-equity ratio is a financial metric that measures the…
Q: provide correct questions
A: To calculate the direct labor price (or rate) variance, we can use the formula:Direct Labor Price…
Step by step
Solved in 2 steps
- Gardner Denver Company is considering the purchase of a new piece of factory equipment that will cost $420,000 and will generate $95,000 per year for 5 years. Calculate the IRR for this piece of equipment. For further Instructions on internal rate of return in Excel, see Appendix C.Gina Ripley, president of Dearing Company, is considering the purchase of a computer-aided manufacturing system. The annual net cash benefits and savings associated with the system are described as follows: The system will cost 9,000,000 and last 10 years. The companys cost of capital is 12 percent. Required: 1. Calculate the payback period for the system. Assume that the company has a policy of only accepting projects with a payback of five years or less. Would the system be acquired? 2. Calculate the NPV and IRR for the project. Should the system be purchasedeven if it does not meet the payback criterion? 3. The project manager reviewed the projected cash flows and pointed out that two items had been missed. First, the system would have a salvage value, net of any tax effects, of 1,000,000 at the end of 10 years. Second, the increased quality and delivery performance would allow the company to increase its market share by 20 percent. This would produce an additional annual net benefit of 300,000. Recalculate the payback period, NPV, and IRR given this new information. (For the IRR computation, initially ignore salvage value.) Does the decision change? Suppose that the salvage value is only half what is projected. Does this make a difference in the outcome? Does salvage value have any real bearing on the companys decision?A restaurant is considering the purchase of new tables and chairs for their dining room with an initial investment cost of $515,000, and the restaurant expects an annual net cash flow of $103,000 per year. What is the payback period?
- Crazy Burger Shop has the following investment opportunity: Burger machinery at t=0 costs $6,000. The cost of making burgers is $2,000 per year at t=1, t=2, and t=3. The burger machinery is depreciated using the straight-line method to $1,500 over 3 years. The market value of the burger machinery after three years is $2,600. Estimated annual sales are $4,500 per year at t=1, t=2, and t=3. The required return is 15%. The tax rate is 18%. Assume no working capital requirements. What is the NPV of this project? A. $259.97 B. $1,006.62 C. $876.44 D. $-702.92Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $49,000 and a remaining useful life of five years. It can be sold now for $59,000. Variable manufacturing costs are $44,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. Machine A Machine B Purchase price $ 122,000 $ 136,000 Variable manufacturing costs per year 18,000 15,000 (a) Compute the income increase or decrease from replacing the old machine with Machine A. (b) Compute the income increase or decrease from replacing the old machine with Machine B. (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase?Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $47,000 and a remaining useful life of five years. It can be sold now for $57,000. Variable manufacturing costs are $47,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. Machine A Machine B Purchase price $ 118,000 $ 132,000 Variable manufacturing costs per year 20,000 14,000 (a) Compute the income increase or decrease from replacing the old machine with Machine A.(b) Compute the income increase or decrease from replacing the old machine with Machine B.(c) Should Lopez keep or replace its old machine?(d) If the machine should be replaced, which new machine should Lopez purchase?
- Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $45,000 and a remaining useful life of five years. It can be sold now for $52,000. Variable manufacturing costs are $36,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. Machine A Machine B Purchase price $ 115,000 $ 125,000 Variable manufacturing costs per year 19,000 15,000 (a) Compute the income increase or decrease from replacing the old machine with Machine A.(b) Compute the income increase or decrease from replacing the old machine with Machine B.(c) Should Lopez keep or replace its old machine?(d) If the machine should be replaced, which new machine should Lopez purchase?Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $49,000 and a remaining useful life of four years. It can be sold now for $59,000. Variable manufacturing costs are $43,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is four years. Machine A Machine B Purchase price $ 121,000 $ 135,000 Variable manufacturing costs per year 19,000 15,000 (a) Compute the income increase or decrease from replacing the old machine with Machine A. (b) Compute the income increase or decrease from replacing the old machine with Machine B. (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase?Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $46,000 and a remaining useful life of five years. It can be sold now for $56,000. Variable manufacturing costs are $47,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. Purchase price Variable manufacturing costs per year (a) Compute the income increase or decrease from replacing the old machine with Machine A. (b) Compute the income increase or decrease from replacing the old machine with Machine B. (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? Req A Complete this question by entering your answers in the tabs below. Req B Machine A: Keep or Replace Analysis Revenues Sale of existing machine Costs Req C and D Compute the income increase or decrease from replacing the old machine…
- The engineering team at Manuel’s Manufacturing, Inc., is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs $395,000 initially and is expected to increase revenue $110,000 per year every year. The software and installation from Vendor B costs $280,000 and is expected to increase revenue $110,000 per year. Manuel’s uses a 4-year planning horizon and a 8.0 % per year MARR. What is the present worth of each investment?Vendor A: $Vendor B: $Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±20.Natural Foods Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The new garden tool is expected to generate additional annual sales of 5,500 units at $48 each. The new manufacturing equipment will cost $107,200 and is expected to have a 10-year life and a $8,200 residual value. Selling expenses related to the new product are expected to be 5% of sales revenue. The cost to manufacture the product includes the following on a per-unit basis: Direct labor $8.20 Direct materials 26.70 Fixed factory overhead-depreciation 1.80 Variable factory overhead 4.10 Total $40.80 Determine the net cash flows for the first year of the project, Years 2–9, and for the last year of the project. Use the minus sign to indicate cash outflows. Do not round your intermediate calculations but, if required, round your final answers to the nearest dollar.Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $49,000 and a remaining useful life of five years. It can be sold now for $59,000. Variable manufacturing costs are $49,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. Purchase price Variable manufacturing costs per year (a) Compute the income increase or decrease from replacing the old machine with Machine A. (b) Compute the income increase or decrease from replacing the old machine with Machine B. (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? Req A Complete this question by entering your answers in the tabs below. Req B Req C and D Machine A: Keep or Replace Analysis Revenues Sale of existing machine Costs Compute the income increase or decrease from replacing the old machine…
