2- You want a mountain cabin built for weekend trips, vacations, to host family, and perhaps eventually to retire in. After46 discussing the project with a local contractor, you receive an estimate that the total construction cost of your 2500-ft² lodgeA will be $325,000. The percentage of costs is broken down as follows:Cost ItemsPercentage of Total CostsConstruction permits, legal and title fees7Roadway, site clearing, preparation17Foundation, concrete, masonry19Wallboard, flooring, carpentry8Heating, ventilation, air conditioning (HVAC) 14Electric, plumbing, communications10Roofing, flooring9Painting, finishing16100(a) What is the cost per square foot of the 2500-ft² lodge?(b) If you are also considering a 4500-ft² layout option, estimate your construction costs if:i. All cost items (in the table) change proportionately to the size increase.ii. The first two cost items do not change at all; HVAC changes by 50%; and all others are proportionate.

In construction costing, the expenditures from construction are reported on project basis. The costs…

Answered: (a) What is the cost per square foot of…

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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The operations manager at Sebago Manufacturing is considering three proposals for supplying a critical component for its new line of electric watercraft. Proposal one is to purchase the component, proposal two is make the component in-house using rebuilt equipment, and proposal three is to purchase new, highly automated equipment. The costs associated with each proposal are provided in the table below. Proposal Annual cost ofcapital required Variable cost ofeach component One: purchase $0.00 $22.00 Two: make with rebuiltequipment $150,000.00 $14.00 Three: make with newequipment $450,000.00 $12.50 At what quantity range will each option be preferred?
If you were analyzing a replacement project and suddenly learnedthat the old equipment could be sold for $1,000 rather than $400,would this new information make the replacement look better orworse? Explain.
You are considering relocating your outdoor-equipment manufacturing plant and have narrowed your choices to four possible locations based on the availability of high quality labor, rail transportation, and an adequate distribution network. Based on the following costs and benefits associated with each location, use incremental analysis and IRR to choose the most cost-effective location assuming MARR = 15%. Initial cost (Year 0) Annual operations and maintenance costs (Years 1 thru 5) Annual gross benefits (Years 1 thru 5) Upload Choose a File Question 6 Portland, OR Bend, OR Boise, ID $700,000 $800,000 $600,000 500,000 800,000 Seattle, WA $1,000,000 1,000,000 400,000 1,100,000 You consider purchasing a new piece of equipment (7yr MACRS property) f 1,375,000 625,000 1,500,000 sod POLE 1-10 1
Morgan Inc. manufactures ergonomically correct office chairs. They have a contribution margin of $110,000 and fixed expenses of $28,500. They are adding a warehouse space that will add $20,000 to their fixed expenses. What is their DOL after adding this new expense? O 2.50 O 1.35 O 1.79 O 2.27
2) A 50,000 gallon tank costs $210,000. The cost capacity factor is 0.65. Estimate the cost of a 90,000 gallon tank. Round to the nearest hundredth.
I also have some confuse for the decision: system B is more beneficial then system A due to lower negative NPV from system A. Should we need compare with negative NPV or cost per year? For negative NPV, system A ($541,843)is lower negative NPV than system B($706,984.82). On the other hand, system B ($167,116.14) is lower cost of each year than system A ($174,652.85). Thank you ~
Please see both images for full question to solve for.
Attached is questions diagram, USE EXCEL AS ITS REQUIRED Question 10. Using the replacement chain method (machine B can be replaced with an identical machine at the end of year 3), determine which project should be adopted after tax. Pick the correct answer. Machine A Machine B Either machine Neither machine
6. A lamp socket die-cutting company has two alternatives to purchase a new die-cutting machine, where the initial investment (in US dollars) and the projected net income stream for each alternative is shown in the following tables; the number of periods corresponds to the number of years of service life. If the company's purchasing committee considers a capital cost of 12.50% for internal financing, which machine should be purchased?
Use the information for Desks Unlimited above with the following changes:1. The Computer Desk Division is able to sell at full capacity (15,000 units).2. If there is a transfer between the divisions, the Computer Desk Division will save $50 per unit in Variable Marketing and Shipping costs.Answer the following questions. Show your work and clearly label your answers. a. What is the appropriate Transfer Price range?b. If a transfer is made for $460 per desk, how much better of worse off is the firm?
Sammamish Brick, Inc., manufactures bricks using clay deposits on the company's property. Raw clays are blended and then extruded into molds to form unfired bricks. The unfired bricks are then stacked onto movable metal platforms and rolled into the kiln where they are fired until dry. The dried bricks are then packaged and shipped to retail outlets and contractors. The bottleneck in the production process is the kiln, which is available for 2,200 hours per year. Data concerning the company's four main products appear below. Products are sold by the pallet. Gross revenue per pallet Contribution margin per pallet Annual demand (pallets) Hours required in the kiln per pallet Traditional Brick $769 $480 75 10 Textured Facing $1,331 $ 620 Cinder Block $608 $388 85 4 Roman Brick $886 $455 95 10 150 No fixed costs could be avoided by modifying how much is produced of any product. Required: 1a. Calculate the total hours required in the kiln to satisfy demand for all products. Traditional…
3) If demand for 2022 is instead 2,500 units should the company pay to increase their capacity? Why? Please explain your calculations and reference to the chart in Figure 1. Assume units are sold at the normal price. Please mention the concept of incremental profits. Hint: If you expand capacity, you will have to pay additional fixed costs of $25,000. Remember that fixed costs are fixed within the relevant range. If you expand capacity then you are outside this range. If you expand capacity then you can make revenue on 500 additional units at the normal price and would pay variable costs on 500 additional units. Please consider the incremental profit or loss of expanding capacity. The incremental profit is the increase in revenues minus the increase in costs of adding 500 more units. If the incremental profit of expanding capacity is positive then you should do so.

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