The Museum of Natural Science is preparing for its annual appreciation dinner for contributing members. Last year, 500 members attended the dinner. Tickets for the dinner were $20 per attendee.The profit report for last year's dinner follows.(Click the icon to view the profit report.)This year the dinner committee does not want to lose money on the dinner. To help achieve its goal, the committee analyzed last year's costs. Of the $11,000 cost of the dinner, $6,000 were fixedcosts and $5,000 were variable costs. Of the $3,000 cost of invitations and paperwork, $2,500 were fixed and $500 were variable.Read the requirements.Requirement 1. Prepare last year's profit report using the contribution margin format. (Use parentheses or a minus sign when entering losses.)Ticket salesVariable cost of dinnerVariable invitations and paperworkContribution marginFixed cost of dinnerFixed invitations and paperworkProfit (loss)50005006000250010000550045008500-4000(...)Requirement 2. The committee is considering expanding this year's dinner invitation list to include volunteer members (in addition to contributing members). If the committee expands the dinnerinvitation list, it expects attendance to double. Calculate the effect this will have on the profitability of the dinner assuming fixed costs will be the same as last year. (Use parentheses or a minus signwhen entering losses.)If the museum expands the dinner invitation list, the profit (loss) will be500 Requirements1.2.Prepare last year's profit report using the contribution margin format.The committee is considering expanding this year's dinner invitation list toinclude volunteer members (in addition to contributing members). If thecommittee expands the dinner invitation list, it expects attendance todouble. Calculate the effect this will have on the profitability of the dinnerassuming fixed costs will be the same as last year.

Contribution margin - is the margin generated with the revenue generated additionally by selling…

Answered: Requirements N- 1. 2. Prepare last…

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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1. Marginal Cost-Benefit Analysis As a financial analyst for Longview Products Company, you have been asked to evaluate a proposal for new, more efficient manufacturing equipment. The existing equipment will produce benefits over the next five years of $780,000 in today's dollars. The proposed new equipment will produce benefits of $970,000 in today's dollars over the same period. The installed cost of the new equipment is $300,000; the old equipment can be sold for $130,000. Apply marginal cost-benefit analysis to determine: a. The marginal benefits of the new equipment b. The marginal costs of the new equipment c. The net benefit of the new equipment d. Based on your calculations, what do you recommend? Why? e. What factors other than the costs and benefits should be considered before the final decision is made? 2. Interest verens Dividend Exnence
Net Present Value and Internal Rate of Return. Below are the projected revenues and expenses for a new clinical nurse specialist program being established by your healthcare organization. The nurses would provide education while patients are in the hospital and home visits are on a fee-for-service basis after patients have been discharged Should the hospital undertake the program if its required rate of return is 12%? Note: it must be assumed that the revenues and costs in this problem represent cash flows. Present value analysis is based on cash, not revenue or expenses. Provide a response to support the findings in the table listed below. Your response should be at least a half page long in addition to the table. Please include citations. Year One Year Two Year Three Year Four Total Revenue $100,000 $150,000 $200,000 $250,000 $700,000 Costs $150,000 $150,000 $150,000 $150,000 $600,000 $ <50,000> $0 $50,000 $100,000…
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A manufacturer of automated optical inspection devices is deciding on a project to increase the productivity of the manufacturing processes. The estimated costs for the two feasible alternatives being compared are shown below. Use the internal rate of return (IRR) method to determine which alternative should be selected if the analysis period is 8 years and the company's MARR is 4% per year. Alternative M N Initial costs $30,000 $45,000 Net annual cash flow $4,500 $7,000 Life in years 8 8 (a) IRR of base alternative = (b) IRR of incremental cash flow = (c) Choose Alternative
Below are the projected revenues and expenses for a new clinical nurse specialist program being established by a hospital. Nurses would provide education while the patient is in the hospital and home visits after patient discharge on a fee-for-service basis. Should the hospital undertake the program if its required rate of return is 12%? Year 1 Year 2 Year 3 Year 4 Total Revenue costs 100,000 150,000 200,000 250,000 700,000 150,000 150,000 150,000 150,000 600,000 (50,000) 0 50,000 100,000 100,000
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Vancouver Shakespearean Theater's board of directors is considering the replacement of the theater's lighting system. The old system requires two people to operate it, but the new system would require only a single operator. The new lighting system will cost $115,700 and save the theater $24,000 annually for the next eight years. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Exercise 16-28 New Present Value with Different Discount Rates (Section 1) (LO 16-1) Required: 1-a. Prepare a table showing the proposed lighting system's net present value for each of the following discount rates: 8 percent, 10 percent, 12 percent, 14 percent, and 16 percent. 1-b. Based on your findings in requirement 1-a., Which statement is true? Complete this question by entering your answers in the tabs below. Req 1A Prepare a table showing the proposed lighting system's net present value for each of the following discount rates: 8 percent, 10 percent, 12 percent, 14…
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