Consider this problem for the next five questions: At Kahel Enterprises, a producer of orange crates sold to growers, they are able to produce 450 crates per 100 logs with their current equipment. They currently purchase 100 logs per day, and each log requires 1.5 labor hours to process. They believe that they can hire a professional buyer who can buy better-quality log at the same cost. If this is the case, they can increase their production to 480 crates per 100 logs. Their total labor hours, on the other hand, will increase by an additional 2 hours per day (this is due to the additional logistics operations needed with the professional buyer). Given below are the cost per component in the system, which includes the labor cost, material cost, capital cost, and energy and utility cost. Component Cost Labor Php 100/labor hour Material (Logs) Php 200/log Capital Php 500/day Energy & Utility Php 350/day Question 1: What is the current labor productivity? 4.5 crates per labor hour 3 crates per labor hour 4.5 logs per labor hour 3 logs per labor hour

Consider this problem for the next five questions: At Kahel Enterprises, a producer of orange crates sold to growers, they are able to produce 450 crates per 100 logs with their current equipment. They currently purchase 100 logs per day, and each log requires 1.5 labor hours to process. They believe that they can hire a professional buyer who can buy better-quality log at the same cost. If this is the case, they can increase their production to 480 crates per 100 logs. Their total labor hours, on the other hand, will increase by an additional 2 hours per day (this is due to the additional logistics operations needed with the professional buyer). Given below are the cost per component in the system, which includes the labor cost, material cost, capital cost, and energy and utility cost. Component Cost Labor Php 100/labor hour Material (Logs) Php 200/log Capital Php 500/day Energy & Utility Php 350/day Question 1: What is the current labor productivity? 4.5 crates per labor hour 3 crates per labor hour 4.5 logs per labor hour 3 logs per labor hour

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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Consider this problem for the next five questions: At Kahel Enterprises, a producer of orange crates sold to growers, they are able to produce 450 crates per 100 logs with their current equipment. They currently purchase 100 logs per day, and each log requires 1.5 labor hours to process. They believe that they can hire a professional buyer who can buy better-quality log at the same cost. If this is the case, they can increase their production to 480 crates per 100 logs. Their total labor hours, on the other hand, will increase by an additional 2 hours per day (this is due to the additional logistics operations needed with the professional buyer). Given below are the cost per component in the system, which includes the labor cost, material cost, capital cost, and energy and utility cost. Component Cost Labor Php 100/labor hour Material (Logs) Php 200/log Capital Php 500 / day Energy & Utility Php 350 / day Question 1: What is the current labor productivity? O 4.5 logs per labor hour O…
Consider this problem for the next five questions: At Kahel Enterprises, a producer of orange crates sold to growers, they are able to produce 450 crates per 100 logs with their current equipment. They currently purchase 100 logs per day, and each log requires 1.5 labor hours to process. They believe that they can hire a professional buyer who can buy better-quality log at the same cost. If this is the case, they can increase their production to 480 crates per 100 logs. Their total labor hours, on the other hand, will increase by an additional 2 hours per day (this is due to the additional logistics operations needed with the professional buyer). Given below are the cost per component in the system, which includes the labor cost, material cost, capital cost, and energy and utility cost. Component Cost Labor Php 10/labor hour Material (Logs) Php 200/log Capital Php 500/day Energy & Utility Php 350/day Question 3: What is the current multifactor productivity? O 0.02013 crates per Php O…
I need answers to question 4 and 5. Please make it very clear. Neptune Company has developed a small inflatable toy that it is anxious to introduce to its customers. The company’s Marketing Department estimates that demand for the new toy will range between 10,000 units and 35,000 units per month. The new toy will sell for $9.00 per unit. Enough capacity exists in the company’s plant to produce 15,000 units of the toy each month. Variable expenses to manufacture and sell one unit would be $5.00 , and incremental fixed expenses associated with the toy would total $32,000 per month. Neptune has also identified an outside supplier who could produce the toy for a price of $4.00 per unit plus a fixed fee of $29,000 per month for any production volume up to 15,000 units. For a production volume between 15,001 and 35,000 units the fixed fee would increase to a total of $58,000 per month. Required: 1. Calculate the break-even point in unit sales assuming that Neptune does not hire the…
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Pappy's Potato has come up with a new product, the Potato Pet (they are freeze-dried to last longer). Pappy's paid $160,000 for a marketing survey to determine the viability of the product. It is felt that Potato Pet will generate sales of $875,000 per year. The fixed costs associated with this will be $220,000 per year, and variable costs will amount to 24 percent of sales. The equipment necessary for production of the Potato Pet will cost $930,000 and will be depreciated in a straight-line manner for the four years of the product life (as with all fads, it is felt the sales will end quickly). This is the only initial cost for the production. Pappy's has a tax rate of 23 percent and a required return of 16 percent. a. Calculate the payback period for this project. Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. Calculate the NPV for this project. Note: Do not round intermediate calculations and round your answer to 2 decimal…
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Should Crimson use the new material? Show your calculations.
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