Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm's fixed costs are 4,000,000 p per year. The variable cost of each component is 2,000 p, and the components are sold for 3,000 peach. The company sold 5,000 components during the prior year. (p denotes the peso, Argentina's national currency. Several countries use the peso as their monetary unit. On the day this exercise was written, Argentina's peso was worth 0.104 U.S. dollar. In the following requirements, ignore income taxes.) Required:

Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm's fixed costs are 4,000,000 p per year. The variable cost of each component is 2,000 p, and the components are sold for 3,000 peach. The company sold 5,000 components during the prior year. (p denotes the peso, Argentina's national currency. Several countries use the peso as their monetary unit. On the day this exercise was written, Argentina's peso was worth 0.104 U.S. dollar. In the following requirements, ignore income taxes.) Required:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Two firms, A and B, both produce brushes. The price of brushes is $1.60 each. Firm A has total fixed costs of $458,000 and variable costs of 48 cents per brush. Firm B has total fixed costs of $260,000 and variable costs of 72 cents per brush. The corporate tax rate is 30%. If the economy is strong, each firm will sell 1,500,000 brushes. If the economy enters a recession, each firm will sell 984,000 brushes. If the economy enters a recession, what will be the after-tax profit of Firm A?
Toro Company is expanding its US-based plastic molding plant as it continues to transfer work from Juarez, Mexico contractors. The plant bought a $1.1 million precision injection molding machine to make plastic parts for Toro lawn mowers, trimmers, and snow blowers. The plant expects to hire 12 people, including some engineers for the expansion. If the average loaded cost (i.e., including benefits) of each employee is $100,000 per year, determine the annual worth of the new systems over a five-year planning period at an interest rate of 10% per year. Assume a 20% salvage value for the new equipment. $-2,436,420 $-2,539,420 $-1,454,142 $-1,973,420
Levi Strauss has some of its jeans stone - washed under a contract with independent U.S. Garment Corp. If U.S. Garment's operating cost per machine is $22,000 for year 1 and then it increases by 8% per year through year 10, what is the equivalent uniform annual cost per machine (years 1-10) at an interest rate of 10% per year? The correct answer to this problem is $30, 012, but i need help working out the steps to get there.
Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 52 weeks each year. Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 200 and the annua holding cost rate is OMR 0.30 per bag. What is the optimal total cycle time including the production time in year? a. 0.146 O b. None is correct O c. 0.208 d. 0.127 e. 0.137 O f. 0.108
Usco Inc. manufactures a product for $20 per unit that is sold to its affiliate, Foreignco, for $24 per unit. Foreignco sells the product at $30 per unit in the local market. Assuming a U.S. tax rate of 21% and Foreignco's local income rate of 10%, the total income tax is calculated as follows: Usco Foreignco Total Sales $24 $30 $30 Cost of sales 20 24 20 Тахable income $4 $6 $10 Tax liability $0.84 (21%) $0.60 (10%) $1.44 Assume the IRS adjusts the transfer price to $28. Determine the total income tax if the tax authority of Foreignco's local government does not provide a correlative adjustment. Group of answer choices $2.28 $1.44 $1.88 $1.04
Classical Glasses operates a kiosk at the local mall, selling s unglasses for $30 each. Classical Glasses currently pays $1,000 a month to rent the space and pays two full-time employees to each work 160 hours a month at $10 per hour. The store shares a manager with a neighboring kiosk and pays 50% of the manager’s annual salary of $60,000 and benefits of $12,000. The wholesale cost of the sunglasses to the company is $10 a pair. Q.Assume Classical Glasses pays its employees hourly under the original pay structure, but is able to pay the mall 10% of its monthly revenue instead of monthly rent. At what sales levels would Classical Glasses prefer to pay a fixed amount of monthly rent, and at what sales levels would it prefer to pay 10% of its monthly revenue as rent?
A US multinational corporation has operations in Bolivia through which it plans to sell a new product of 500,000 cans of beans per year for the next 3 years, at a price of BOB 4 per can after incurring a variable cost of BOB 2.50 per can. The company will also incur a fixed cost of BOB 120,000 per year. The company has invested BOB 900,000 today in manufacturing equipment for its Bolivian operations, which will be depreciated at $300,000 annually over its 3-year life. The corporation's required rate of return (WACC) is 20% and has a tax rate of 25%. The spot rate was BOB 6.91/$ before it unexpectedly changed to BOB 7.25/$. What is the value of the Bolivian operations prior to the unexpected change in the spot rate assuming that the operations have a 3-year life only? (round to the nearest dollar) US$237,699 US$107,453 US$159,076 88 US$166,903
The Gap has some of its jeans stone-washed under a contract with Vietnam Garment Corporation (VGC). If VGC’s estimated operating cost per machine is $26,000 for year 1 and it increases by $1500 per year through year 5, the equivalent uniform annual cost per machine over years 1 to 5, at an interest rate of 8% per year, is closest to: (a) $30,850 (b) $28,770 (c) $26,930 (d) $23,670
A certain factory produces 2000 Ton per year of its product. Th price of one kilogram is 1.8$. The annual direct production cost is 2million $ when the factory works at its whole capacity. Other fixed costs are 7X10^5 b) If the selling price increases by 10% calculate the increase in the net profit at the whole capacity assuming the taxes are 48% of the gross profit.
Please solve all questions
8.2)
Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm’s fixed costs are 3,600,000 p per year. The variable cost of each component is 1,000 p, and the components are sold for 3,800 p each. The company sold 5,900 components during the prior year. (p denotes the peso, Argentina’s national currency. Several countries use the peso as their monetary unit. On the day this exercise was written, Argentina’s peso was worth 0.104 U.S. dollar. In the following requirements, ignore income taxes.)Required:1. Compute the break-even point in units. (Round your answer to the nearest whole number.)2. What will the new break-even point be if fixed costs increase by 10 percent? (Round your answer to the nearest whole number.)3. What was the company’s net income for the prior year?4. The sales manager believes that a reduction in the sales price to 3,300 p will result in orders for 900 more components each year. What will the break-even…