ABC is trying to decide between two machines which are necessary in their manufacturing facility. Data concerning the two machines are presented below. If ABC has an interest rate of 10%. which machine should be chosen? Machine A Machine B First Cost $42.000 $6,000 $80.000 Annual Operating Costs $7,000 year 1. increasing by $1000 per year Salvage Value Useful Life $4.000 2 years 4 years

ABC is trying to decide between two machines which are necessary in their manufacturing facility. Data concerning the two machines are presented below. If ABC has an interest rate of 10%. which machine should be chosen? Machine A Machine B First Cost $42.000 $6,000 $80.000 Annual Operating Costs $7,000 year 1. increasing by $1000 per year Salvage Value Useful Life $4.000 2 years 4 years

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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ndow Help mework.pdf Aa v Question 5 You have been recently hired as general manager of Lucky's. It is September 1, and you must prepare the operating budget of this establishment for the first quarter of the upcoming calendar year, and submit it to the corporate office. Since you have been at the operation for only a month or so, you must rely solely on historical data. You gather sales reports and records for the months of January through August of the current year. Using the data provided, prepare the operating budget for Lucky's for the months of January through March of the upcoming year. Here is the information you determined from the most recent sales and costs records: Sales are 10 percent higher than those of the same month during the previous year. Food cost percentage is steady at 32 percent. Fixed labor costs are steady at $9,000 per month. Variable labor costs are 15 percent of sales. Occupancy costs will remain steady at $2,000 per month. Other controllable costs are…
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PROBLEM #2 Novex Company keeps careful track of the time to complete customer orders. During the most recent quarter, the following average times were recorded for each unit or order: Days . 17.0 Wait time..... Inspection time........0.4 Process time ..........2.0 Move time ..... Queue time.... .5.0 Goods are shipped as soon as production is completed. ..0.6 Required: 1. Compute the throughput time. 2. Compute the manufacturing cycle efficiency (MCE). 3. What percentage of the production time is spent in non-value-added activities? 4. Compute the delivery cycle time.
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