International Paper is trying to find the best paper rolling machine to maximize sales volume. There are three machine options: Machine A, Machine B,and Machine C. Annual revenue is expected to be at one of three possible levels, High, $6 million; Medium, $3 million; or Low, $2 million; but is impactedby machine selection as the probabilities show in the table below:High Revenue Medium Revenue Low RevenueMachine A .1.3.6Machine B .4.4.2Machine C .5.4.1Which machine should International Paper purchase to maximize the expected revenue, and whsthe expected revenue?Group of answer choicesMachine A, $2.7 millionMachine B, $4.0 millionMachine B, S4.6 millionMachine C, $4.4 millionnone of the answers provided are correct

Expected revenue is the revenue that a firm can expect after taking the probability of revenues into…

Answered: International Paper is trying to find…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which one has the best average rate of return. Machine A Machine B Machine C $83,087.40 $73,001.40 322,364.00 276,958.00 486,676.00 Estimated average income $45,130.96 Average investment Oa. Machine B Ob. Machine C Oc. Machine A Od. Machines B and C have the same preferred average rate of return.
Calculate breakeven point in units and Compute the quantity of units which need to be sold to earn a target annual profit of $120,000 In attempting to achieve better results in the marketplace, management has been looking at changing the reward system for marketing, distribution and sales personnel. This would result in an increase in variable marketing and administrative costs by $2 per unit, and would reduce fixed marketing and distribution costs by $100,000: Calculate the number of units required to breakeven if management implemented the changes Would you suggest that management pursue the changes? Explain By reference to the above data - How can a company effectively use CPV (Cost-Volume-Profit) analysis to make strategic decisions about its product pricing and production levels?
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Question is in the image Required:a) Calculate the weighted average unit contribution margin, assuming a constant sales mix. b) How many units of each printer must be sold to break even? c) i) Explain what is margin of safety ii) Calculate in sales units the margin of safety for IPM, assuming projected sales are 25,000 units?
Scholastic Tours is trying to decide which one of two tours It will introduce. The costs and revenues associated with each alternative are listed below: Projected revenue Variable costs Fixed costs Profit Multiple Choice What are the incremental (differential) costs of the Western Tour? $2,000. $3,000. Eastern Tour $16,000 2,000 3,000 $11,000 $6.000. Western Tour $18,000 8,000 3,000 $7,000 None of these choices are correct.
Please help with the ones that are wrong! Thank You
The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which one has the best average rate of return. Machine A Machine B $45,730.58 $60,103.80 326,647.00 200,346.00 Ca, Machines B and C have the same preferred average rate of return b. Machine C C. Machine 11 d. Machine A Estimated average income Average investment Machine C $74,639.55 497,597.00
6.9. Soft Key is trying to determine how best to produce its newest product, DVORK keyboards. The keyboards could be produced in-house using either process A or process B, or purchased from a supplier. Cost data are given below. For what levels of demand should each process be chosen? Fixed Cost Variable CostProcess A $ 8,000 $10Process B $20,000 $ 4Supplier $ 0 $20
An automated turning machine is the current constraint at Jordison Corporation. Three products use this constrained resource. Data concerning those products appear below: LN JQ $168.82 $313.84 $403.08 $139.72 $245.80 $287.56 RQ Selling price per unit Variable cost per unit Minutes on the constraint 1.50 4.20 7.60 Rank the products in order of their current profitability from most profitable to least profitable, In other words, rank the products in the order in which they should be emphasized. (Round your Intermedlate calculations to 2 declmoal places.) Multiple Cholce LN. JQ. RQ RQ. LN. JQ RQ. JQ. LN JQ. RQ LN Mc Graw Hill Type here to search 70°F Mostly cloudy 10 DELL
A company needs a CNC machine. One of four alternative CNC machines will be selected. Machines have no salvage value. Minimum attractive rate of return is %10. The costs of the machines are given in the table below. And please make profitability by using equivalent value methods such as present value, annual equivalent cost and future value, and return rate methods such as internal rate of return and external rate of return. Finally, would you compare all the data? The problem has no input values, only the values in the photo I sent you.
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Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows: Sales revenue Less: Variable cost Contribution margin Less: Fixed cost Net operating income Before Automation $ 195,000 95,000 Required 1 Required 2 $ 100,000 11,000 $ 89,000 Required: 1. Calculate Lobster Trap's break-even sales dollars before and after automation. 2. Compute Lobster Trap's degree of operating leverage before and after automation. Complete this question by entering your answers in the tabs below. DOL Before Automation DOL After Automation After Automation $ 195,000 39,000 $ 156,000 56,000 $ 100,000 Compute Lobster Trap's degree of operating leverage before and after automation. Note: Round your answers to 4 decimal places.

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