All sales are made on account at $20 per unit. Sixty percent of the sales are collected in the month of sale; the remaining 40% are collected in the following month. Forecasted sales for the first five months of 20X2 are: January, 1,500 units,- February, 1,600 units; March, 1,800 units; April, 2,000 units; May, 2,100 units. 2. Management wants to maintain the finished goods inventory at 30% of the following month's sales.
We make 30,000 of these fire extinguishers per year. Each extinguisher requires one handle (assume a 300 day work year for daily usage rate purposes). Assume an annual carrying cost of $1.50 per handle; production setup cost of $150, and a daily production rate of 300. What is the optimal production order quantity? (4 points) Problem 4: We need 1,000 electric drills per year.
A company offers a starting yearly salary of $33,000 with a raise of $2,500 per year. Find the total salary over a 10-year period. an = a1 + (n - 1)*d, [where n = 10 years; a1 = $33,000; d = $2,500] a10 = 33,000 + (10 - 1) * 2,500 a10 = 33,000 + (9) * 2500 a10 = 33,000 + 22,500 a10 = 55,500 The total salary over a 10-year period will be $55,500. 7. Suppose you have $1 the first day of a month, $5 the second day, $25 the third day, and so on.
Using information given in question C, the $16,200 in new machinery will be divided up over 36 months. This additional cost will add $450 per month to Molly’s fixed costs, bringing her total to $2,150 monthly. With that given information, Molly would need to clean an additional 529 items a month to break even. The answer was derived by using the following equation: $2,150 ÷ (1.1 – $0.25) – 2000 = 529.412
They also included a share of the costs associated with running the hubs at two airports, such as ticket agents, building charges, baggage handlers, gate charges, etc. Suppose that the revenue collected on the typical United flight from San Francisco to Washington does not cover these costs. Does this fact imply that United should discontinue these flights? Explain. Based on the book when there are competitive markets such as airlines, a company certainly needs to look at costs and revenue very closely.
The table below contains the relevant information for this project. | | | Development cost | $ | 1,050,000 | | Estimated development time | | 9 | months | Pilot testing | $ | 200,000 | | Ramp-up cost | $ | 400,000 | | Marketing and support cost | $ | 150,000 | per year | Sales and production volume | | 60,000 | per year | Unit production cost | $ | 100 | | Unit price | $ | 185 | | Interest rate | | 8 | % | | Tuff Wheels also has provided the project plan shown below. As can be seen in the project plan, the company thinks that the product life will be three years until a new product must be created. | a. | What is the net present value (discounted at 8%) of this project?
3 Purchased washers and dryers for $25,000, paying $10,000 in cash and signing a $15,000, 6-month, 12% note payable. 4 Paid $1,200 for a one-year accident insurance policy. 10 Received a bill from the Daily News for advertising the opening of the Laundromat $200. 20 Bob withdrew $700 cash for personal use. 30 The company determined that cash receipts for laundry services for the month
Revenue fell 4 per cent to $7.9 billion. Qantas' domestic operations reported a 74 per cent fall in pre-tax profit to $57 million, which was blamed on intense competition in the domestic market and growth in capacity. But it was overshadowed again by Qantas' international operations, which slumped to a $262 million loss compared with a $91 million loss previously. This article refers to Qantas cutting down jobs for many workers. This is an internal issue- business management; this affects the business in a negative way.
The applicable MACRS rates are 33%, 45%, 15%, and 7%. If the computer is purchased, a maintenance contract must be obtained at a cost of $25,000, payable at the beginning of each year. After 4 years, the computer will be sold. Millon’s best estimate of its residual value at that time is $125,000. Because technology is changing rapidly, however, the residual value is uncertain.
The projected fee for the seminar is $300 per student. The cost for the conference room, instructor compensatipn , lab assistants, and promotion is $4800. Micromedia rents computer for its seminars at a cost of $30 per computer per day. A. Develop a model for the total cost to put on the seminar.