Joe makes $15 per hour and works 40 hours per week. 30-year mortgage interest rate of 6.25% and a monthly payment of $439.00 15-year mortgage interest rate of 5.25% and a monthly payment of $575.00 Down payment: 5% minimum Taxes last year were $375. Insurance is $250 per year. What you are looking for: 1. Can Joe afford the monthly payments with taxes and insurance for either a 30 or 15 year mortgage?
Q= 4 weeks supply = 1600 units R= 400 units a week= 20000 units/ year C= purchase cost per unit= $1250 X (1-.20)= 1,000 H= holding cost= rC= $200 per unit / year S= setup cost= 2000 + 93.75 = $2,093.75 Setups per year= R/Q= 20000/1600= 12.5 Annual setup cost= (R/Q)(S)=12.5X $2,093.75= $26,172 Annual Holding cost= (q/2)(H)= (1600 /2)X $200= $160,000 Total Annual Cost= Annual Setup Cost+ Annual Holding Cost Total Annual Cost= 26,172+160,000 BIM’S Total Annual Cost= $186,172 (b) Compute the economic batch size and the resulting cost savings. Qo= √2RS/H= √(2(20000)(2093.75)/200) = 647 Economic Batch size= 647 Annnual setup cost= (R/Q)(S)= (20000/647) X 2093.75= $64,722 Annual Holding Cost= (Q/2)H= (647/2)X $200= 64,700 Total Annual Cost= Annual setup cost+ Annual Holding Cost Total Annual Cost= $64,722+ $64,700 = $129,422 Cost savings= $186,172- $129,422= $56,750 Cost savings= $56,750 Question 3 (a) Compute Victor’s total annual cost of ordering and carrying inventory. Assumption= 52 weeks/year R = 30 dresses per week = 30 X 52 weeks per year = $1560 Sales price = $300/dress C = 150 per dress Order Lead Time = 2 weeks Fixed Order Cost = S = $225 Cost of Capital = r = 20% Annual Holding cost = H = rC = 150 X 20% = $30 per dress Q = 10 week supply X $30 Annual
(5 points) Annual income Hourly wage 2005 U.S. federal poverty line for a family of four $19,350 $9.675 2005 U.S. median household income $46,326 $23.163 2. For each of the professions in the left column, calculate the annual pay based on full-time, year-round employment consisting of 2,000 hours a year (40 hours per week for 50 weeks each year). Record your calculations under "Annual income" in the table. Then, find the difference
Littlefield Case Capacity Assessment: how many machines to buy at each stage Based on the data for 50 days of simulated operations following observations were made: Average Demand: 12.22 orders per day, standard deviation: 3.55 orders per day Average Jobs completed: 11.875 orders per day Average Utilization of machine 1: 0.896 Average Utilization of machine 2: 0.93 Average Utilization of machine 3: 0.898 Average Capacity = Average Jobs completed / (Average Utilization * # of machines) Therefore, average Capacity of machine 1: 4.42 orders per day Average Capacity of machine 2: 12.77 orders per day Average Capacity of machine 3: 13.22 orders per day CVa = Std. Dev of Demand / Mean Demand = 0.29 CVp is assumed to be zero Therefore, average waiting time in the queue turned out to be 0.6 hours, 0.68 hours, and 0.66 hours respectively at stage 1, stage 2 and stage 3. Considering these waiting times, the new throughput rate at each stage came to be 11.93, 9.37 and 9.71 orders per day respectively at stage 1, stage 2 and stage 3. If one more machine is bought at each stage the capacity will increase and the average waiting time in the queue would get reduced. The new throughput rate (including the average queue waiting time) at each stage came to be 16.37, 21.78 and 22.55 orders per day respectively at stage 1, stage 2 and stage 3.
ACCT 550 Week 7 Homework Chapter 11: E11-4, E11-9, E11-11, E11-17 E11-4 (Depreciation Computations—Five Methods) Wenner Furnace Corp. purchased machinery for $279,000 on May 1, 2012. It is estimated that it will have a useful life of 10 years, salvage value of $15,000, production of 240,000 units, and working hours of 25,000. During 2013, Wenner Corp. uses the machinery for 2,650 hours, and the machinery produces 25,500 units. Instructions From the information given, compute the depreciation charge for 2013 under each of the following methods. (Round to the nearest dollar.)
Use the following example to learn the SLOs Prepare income statement under absorption costing and direct costing for ABC corporation from the following data: Direct material cost per unit is $4,direct labor cost per unit is $5,variable manufacturing overhead per unit is $3,fixed manufacturing overhead budgeted per month is $12000,variable selling and administrative cost per unit is $2 and fixed selling and administration cost budgeted per month is $7000.Production and sale information is as follows: January February March April Total Units produced 8000 10000 5000 3000 26000 Units sold 8000 9000 6000 3000 26000 Sales price per unit is $ 30 Budgeted capacity of production per month is 8000 units. Capacity variance resulting in over applied and under applied overhead is closed to cost of goods sold. Reconcile the income under absorption and direct costing. Sample multiple choice questions: 1)ABC company had a net income of $120000 using absorption costing income statement and $ 95000 using variable costing income statement. Fixed manufacturing overhead cost per unit was $10.If 22500 units were produced how many units
Consistent with management science, Boeing is focusing on the “numbers”, even at the supplier level. -In operations management techniques Boeing conducts roughly 4 hour long monthly and quarterly assessments to see if the supplier can speed up production. This techniques deals with scheduling production, production planning and optimum inventory level. With management science, Boeing conducts a 2-3 days long annual review this review would help improve decision making and strategic planning based on the evidence collected through the review. 3.
Workshop Three (Individual Assignment) Case Analysis Averett University International Business Course, BSA 545 February 20, 2013 Question #1: There are several factors that need to be examined in the argument that developing countries ought to be able to maintain their subsidies, the ones to which Hochberg objects, because these countries need advantages to break into and become established in world markets. Will subsidizing exports help the domestic economy in the future? Will the change in operations lead to job exports from the United States and harm the developing countries economy for not leveling the playing field? Will new operations contradict U.S. policies by facilitating the export of products used for repression and providing corporate subsidies? Changes in operations will help increase job exports.
– 133 2013 net sales / base year 2011 net sales = 800,000 / 600,000 = 1.33 1.33 x 100% = 133% 5. In analyzing financial statements, horizontal analysis is a- tool 6. Comparative balance sheets - are usually prepared for at least two years 7. Assume the following cost of goods sold data for a company: 2013 $1,500,000 2012 1,200,000 2011 1,000,000 If 2011 is the base year, what is the percentage increase in cost of goods sold from 2011 to 2013? – 50% = New - Old Old 100 8.
D/V = 40%). Solution – APV vs. WACC Basics: DV=40%,EV=60%→DE=0.40.6=0.667 βL= βU1+DE= 0.9 1+0.667= 1.5 rE= rf+ βLMRP= 4+1.510-4= 13% WACC=rD1-TcDV+ rEEV=0.041-0.30.4+0.130.6=0.0112+0.078=8.92% 1) Project value using WACC -1000+ 300(1+0.0892)+ 400(1+0.0892)2+ 500(1+0.0892)3= -0.46 2) Project value using APV a) 60% debt paid off in three equal annual installments APV=PVCFs at rU+ PVITS rU= rf+ βUMRP=4+0.910-4= 9.4% PVCFs at rU= -1000+ 3001.094+ 4001.0942+ 5001.0943= -9.69 ITS1=Debt x rD x Tc=0.610000.040.3= 7.2 ITS2=4000.040.3= 4.8 ITS3=2000.040.3= 2.4 PVITS= 7.21.04+ 4.81.042+ 2.41.043=13.49 APV= -9.69+13.49=3.8 b) Debt is rebalanced to be consistent with the target debt ratio (D/V = 40%) APV=PVCFs at rU+ PVITS PVCFs at rU= -9.69 (From 2a above) * PV0= 3001.0892+ 4001.08922+ 5001.08923=999.54 Debt0 =0.4999.54= 399.82 ITS1=Debt0 x rD x Tc=399.820.040.3= 4.80 * PV1= 4001.08921+ 5001.08922= 788.7 Debt1=0.4788.7= 315.48 ITS2=315.480.040.3= 3.79 * PV2= 5001.08921=459.05 Debt2=0.4459.05=183.62 ITS3=183.620.040.3=2.2 PVITS= 4.81.094+ 3.791.0942+ 2.21.0943=9.23 APV= -9.69+9.23= -0.46 Note: The APV under 2b equals the value using