Push It Corporation produces push-button switches used in the manufactu ectric fans. For the year 2019, the sales of electric fans have been forecaste 0,000 units. Each unit of electric fans requires 4 pieces of push-button swit sh It regularly supplies 60% of the push-button switches used in the produ new electric fans. In addition, a replacement parts market also exists. Ove st 5 years, the sales of the replacement push-button switches have increase ar by 20% of the preceding year's sales. In 2018, Push It sold 150,000 piec sh-button switches for P10 per piece in both markets. What is the budgeted venue based on the expected number of pieces of push-button switches to be

Push It Corporation produces push-button switches used in the manufactu ectric fans. For the year 2019, the sales of electric fans have been forecaste 0,000 units. Each unit of electric fans requires 4 pieces of push-button swit sh It regularly supplies 60% of the push-button switches used in the produ new electric fans. In addition, a replacement parts market also exists. Ove st 5 years, the sales of the replacement push-button switches have increase ar by 20% of the preceding year's sales. In 2018, Push It sold 150,000 piec sh-button switches for P10 per piece in both markets. What is the budgeted venue based on the expected number of pieces of push-button switches to be

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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A supermarket chain buys loaves of bread from its supplier at $0.55 per loaf. The chain is considering two options to bake its own bread. Machine A Machine B Capital investment Useful life (years) $9,000 $14,500 8 8 $2,000 $0.24 $4,500 $0.18 Annual fixed cost Variable cost per loaf Neither machine has a market value at the end of eight years, and MARR is 15% per year. What is the minimum number of loaves that must be sold per year to justify installing Machine A instead of buying the loaves from the supplier?
Milliken uses a digitally controlled dyer for placing intricate patterns on manufactured carpet squares for home and commercial use. It is purchased for $400,000. Its market value will be $310,000 at the end of the 1st year and drop by $48,000 per year thereafter to a minimum of $30,000. Operating costs are $20,000 the 1st year, increasing by 10% per year. Maintenance costs are only $8,000 the 1st year but will increase by 37% each year thereafter. Milliken's MARR is 18%. Determine the optimum replacement interval for the dyer. Year(s)
SCENARIOYou are the purchasing agent for THE BRICK. You have acquired a great deal from a US supplier who is going out of business. "WOODEN KITCHEN TABLE SETS" are available at 50% of the regular price. But the goods must be imported before the end of February 2023You contact the supplier and he informs you that the price of the SETS were $1800 and now are selling for $900.00 US each and you require 20000 sets Number of units: 20,000Cost per unit: $900.00 USD Exchange rate: $1 USD = $1.46 CAD GST Rate: standard rate Certificate of origin not available (1) Complete the financial calculations VFCC, VFD, CD, VFT, GST and TDTP for this shipment. All calculation must be shown
Relling Corporation manufactures a drink bottle, model CL24. During 2017, Relling produced 210,000 bottles at a total cost of $808,500. Kraff Corporation has offered to supply as many bottles as Relling wants at a cost of $3.75 per bottle. Relling anticipates needing 225,000 bottles each year for the next few years. Q. What is the average cost of manufacturing a drink bottle in 2017? How does it compare to Kraff’s offer?
LG produce refrigerators for consumer use. Each refrigerator cost LG RO250 and they sell each with RO400. The company pay a fixed cost 300000 every year. They also have a profit target of 40000 after tax and a profit target of 25000 pre-tax. The tax rate for the year is 40%. What will be the sales revenue to breakeven: Select one: O a. RO 600000 O b. RO 300000 O c. RO 800000 O d. RO 400000
Zoey Enterprises manufactures solar engines for helicopters. Given the fuel savings available, new orders for 125 units have been made by customers requesting credit. The variable cost is $11,400 per unit, and the credit price is $13,000 each. Credit is extended for one period. The required return is 1.9 percent per period. If Zoey Enterprises extends credit, it expects that 30 percent of the customers will be repeat customers and place the same order every period forever, and the remaining customers will place one-time orders. Should credit be extended? Now, assume that the probability of default is 15 percent. Should the orders be filled now? Assume the number of repeat customers is affected by the defaults. In other words, 30 percent of the customers who do not default are expected to be repeat customers.
Rapido Quadcopters plans to sella standard quadoopter (toy drone) for $54 and a delue quadcopter for $74. Rapido purchases the standard quadcopter for $44 and the deluse quadcopter for $54. Management expects to sel wo dekove quadcopters for every three standard quadcopters The company's monthly foxed expenses are $11,200. How many of each type of quadcopter must Rapido sell monthly to breakeven? To eam $7,7007 First identity the formula to compute the sales in units at various levels of operating income using the contribubon margin approach (Abbreviations used Avg. average, and CM e contribution margin) Fied expenses Operating income Weighed-avg CM per unit Breakeven sales in units Next compute the weighted average contribution margin per unit. First identity the formula labols, then complete the calculations step by step Standard Sale price per unt Deduct Varable expense per unit Contribution margin per unit Sales mix in unts Contribution margin Weighted average contribution margin…
Zoey Enterprises manufactures solar engines for helicopters. Given the fuel savings available, new orders for 125 units have been made by customers requesting credit. The variable cost is $11,400 per unit, and the credit price is $13,000 each. Credit is extended for one period. The required return is 1.9 percent per period. If Zoey Enterprises extends credit, it expects that 30 percent of the customers will be repeat customers and place the same order every period forever, and the remaining customers will place one-time orders. Should credit be extended? b) Now,assumethattheprobabilityofdefaultis15percent.Shouldtheordersbefillednow? Assume the number of repeat customers is affected by the defaults. In other words, 30 percent of the customers who do not default are expected to be repeat customers.
RG Motors has been approached by a new customer with an offer to purchase 5,000 units of its hand-free, Wi-Fi-enabled automotive model – the SMART, at a price of RM18,000 per automobile. RG’s other sales would not be affected by this new customer offer. RG normally produces 100,000 units of its SMART model per year but only plans to produce and sell 90,000 units in the coming year. The normal sales price is RM35,000 per SMART. Unit cost information for the normal level of activity is as follows: Table 7: Production Costs Total Cost RM Direct materials 10,000 Direct labor 2,000 Variable overhead 4,000 Fixed overhead 8,000 Total 24,000 Fixed overhead will not be affected by whether or not the special order is accepted. Required: (i) List the relevant costs and benefits of the two alternatives of the special order. (ii) Propose whether operating income increase or decrease if the order is accepted with calculation details.
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Mersey Chemicals manufactures polypropylene that it ships to its customers via tank car. Currently it plans to add two additional tank cars to its fleet four years from now. However, a proposed plant expansion will require Mersey's transport division to add these two additional tank cars in 1 years' time rather than in 4 years. The current cost of a tank car is $1.9 million, and this cost is expected to remain constant. Also, while tank cars will last indefinitely, they will be depreciated straight-line over a five-year life for tax purposes. Suppose Mersey's tax rate is 20%. When evaluating the proposed expansion, what incremental free cash flows should be included to account for the need to accelerate the purchase of the tank cars? Incremental FCF for year 0 is how much? (Round to two decimal places and outflows as negative values.)
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