Two machines, A and B, which perform the same functions, have the following costs and lives.       Type PV costs life Machine A RM 6000 5 Machine B RM 8000 7 The cost of capital is 15% Which machine should a company choose?

Q: Jason Company is considering replacing equipment which originally cost $620,000. New equipment costs…

A: Sunk Cost means past cost or Historical Cost. It is the cost that has already been incurred and does…

Q: M and M, Inc. produces a product that has a variable cost of $4.50 per unit. The company's fixed…

A: Variable costs are business expenses that change depending on how much a company provides or sells.

Q: If you are the Financial Manager of Zenith Construction Company, which of the three alternatives has…

A: Solution Concept There are three different alternative course of action given The alternative with…

Q: XYZ manufactures a computer stand. It has fixed costs of $600,000 and each stand sells for $90, with…

A: Formula: Contribution margin per unit = Sales price per unit - Variable cost per unit

Q: Chattanooga Development Company has learned that a small rubber O-ring it now manufactures at a cost…

A: a) To evaluate whether Chattanooga Development Company should buy or continue to make the rubber…

Q: A new innovation doubles the number of hoops fabricator can produce. How many fabricators should H2H…

A: A new innovation doubles the number of hoops fabricator can produce. How many fabricators should H2H…

Q: The Borstal Company has to choose between two machines that do the same job but have different…

A: Discount Rate =8%

Q: Future Enterprises is trying to predict the cost associated with producing its telescopes. At a…

A: Total cost of producing 5,000 telescopes = No. of telescopes produces x average cost per telescope

Q: Mazoon Company is producing 30000 units every year and making a profit of RO 450000. The company…

A: Degree of Operating Leverage = Contribution margin/ Net Income

Q: A to make or buy the managed is im dilemma of whether product. Suppose item is purchased tham cost…

A: The objective of this question is to determine whether it is more cost-effective for the firm to…

Q: Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two…

A: Net present value is the net value of all the present value of benefits and cost to be incurred or…

Q: Ouzts Corporation is considering Altemnative A and Alternative B. Costs associated with the…

A: While taking decision regarding various alternate , we need to consider the various cost and check…

Q: Appraiser John is evaluating a 1,200-square-foot log cabin, whose owner is refinancing. He…

A: Total square foot = 1,200 Cost of replacement = $80 Depreciation = 20%  Value of land = $48,000

Q: A В Buying cost 8.000 15.000 TL Annual operating expense 1.500 |300 2.000 4.000 Worth of scrap 7 10…

A: The question is based on the concept of annual worth calculation of two machines for buying decision…

Q: Mazoon Company is producing 30000 units every year and making a profit of RO 450000. The company…

A: Formula: Degree of operating leverage = Contribution margin / Net operating income. Division of…

Q: The Lombard Company produces and sells office-space dehumidifiers to companies that own or rent…

A: “Since you have posted multiple questions with multiple sub parts, we will provide the solution only…

Q: A firm has fixed costs of $200,000 associated with the manufacture of lawn mowers that cost $120 per…

A: Solution: Cost Volume Profit (CVP) Analysis describes how changes in costs, expenses and Volume…

Q: pronado's Manufacturing Company can make 100 units of a necessary component part with the following…

A: Relevant cost :— It is the cost that are different in different alternatives. This cost is used for…

Q: Demand for concave utility meters is expanding rapidly, but the industry is highly competitive. A…

A: > Given data:> Plant cost = 44000000>Interest rate = 14%> capacity = 616000> Variable…

Q: XYZ manufactures a computer stand. It has fixed costs of $600,000 and each stand sells for $90, with…

A: Formula: Profit = Revenues - Expenses.

Q: The Borstal Company has to choose between two machines that do the same job but have different…

A: Capital budgeting is a technique in financial management that involves evaluating and selecting…

Q: Your small toy manufacturing facility has the following information: Fixed costs $10,500 Material…

A: Fixed costs = $10,500 Variable cost per unit = $0.375 + $0.019 + $0.095 = $0.489 Profit required =…

Q: Windsor Company must decide whether to make or buy some of its components. The costs of producing…

A: Make and buy decision is based on increase cost. For decision making process we consider only…

Q: The BEP is 5000 units, the price per unit is P60 and the variable cost per unit is P20. What is the…

A: Formulas: Break even point = Fixed costs /Contribution margin per unit  where, Contribution margin…

Q: Whispering Winds Company must decide whether to make or buy some of its components. The costs…

A: For deciding the making or buying of product first we want to check the overall cost associated with…

Q: he wishes to know what the annual cost, at the economic life, will be for a van with the following…

A: The annual cost analysis helps an organization to evaluate the life cycle of a project.   The…

Q: Senate Inc. is considering two alternative methods for producing playing cards. Method 1 involves…

A: cashflow   Disounted Cashflow       year project  S Project L PVF@ 9% project S Project L 0…

Q: A part is to be used in the assembly of a product. Alternative 1 is to manufacture it in-hol and…

A: Break even quantity is quantity where total cost of both options is equal and there is not…

Q: 5. Amazon purchases parts from 3 suppliers. The cost for each part is the following cl = 500, c2 =…

A:

Q: The TSLA Corporation currently uses a manufacturing facility costing $400,000 per year; 80% of the…

A: Allocated costs :— It is calculated by multiplying common costs with allocation percentage.…

Q: XYZ manufactures a computer stand. It has fixed costs of S600,000 and each stand sells for $90, with…

A: Formula: Unit contribution margin = Sales price per unit - variable cost per unit

Q: Imagine you have a business, you are selling a one of a kind gadget, the cost you incurred for the…

A: The formula used as follows: Break even =Fixed costContribution

Q: Clockmaker Ltd. makes a product called wallet. Managers from Clockmaker Ltd. want to achieve a…

A: The contribution Margin is calculated as difference between sales and variable cost. The break even…

Q: The Borstal Company has to choose between two machines that do the same job but have different…

A: To calculate the annual rental payment, we can use the concept of present value. The present value…

Q: = breakeven point in

A: Definition: Break even point: A point at which fixed and variable expenses equals revenue. It is…

Q: Alpha and Beta companies produce the same product with different technology. The selling price (T)…

A: Break-Even Point: The Break-even point is the point of sale at which an organization does not earn…

Q: oncord Music produces 59600 blank CDs on which to record music. The CDs have the following costs:…

A: To calculate maximum external price: Variable overhead                        3300  Direct…

Q: Butcher Butcher is considering whether to invest in a new product, the Zam. Details of the Zam are…

A: Capital budgeting is basically discovering, assessing, and choosing investments to determine a…

Q: business and its replacement cost is £360 per tonne. What is the relevant cost of the material? O a.…

A: in case of inventories it is measured at the lower of cost or net realisable value as the cost of…

Q: and alternative 2 is to purchase from outside. Determine the break-even qua between the two…

A: Breakeven quantity is where the there is no profit and no loss and there is no difference between…

Q: What is Temporary financing?

A: There are various sources of temporary financing which are as follows: a) Commercial paper b) Bank…

Q: Below is information about the two trucks that will be taken to the Arel Flour Factory. Their…

A: Cost of Capital = 20% Economic Life = 10 years Cash Flows: Year Cash Flow - X Cash Flow - Y…