| Cost | Machine Hours | April | $61,255 | 1,189 | May | $82,714 | 1,806 | June | $97,496 | 2,474 | Using the high-low method, determine the variable cost per unit, and the total fixed costs. Select the correct answer. $28.20 per unit and $69,775 respectively. | | | $28.20 per unit and $27,721 respectively. | | | $30.45 per unit and $27,721 respectively.
P(x) =x^2 – 4000x + 7800000 3800000 = x^2 -4000x + 7800000 answer: number of items sold= 2000 X^2-4000x+4000000=0 (x-2000) ^2=0 X=2000 P(2000) =3800000 6. The value of a machine depreciates according to the function f(x)=20000(1/2)x , where x is the time in years from the purchase of the machine. Find its value after 3 years. 1(x)=200000(1/2)^x 20,000(.5)
The difference between the models is in the cost of the parts. The following data are available for June. Fin-X 10,000 $20 Sci-X 40,000 $25 Total 50,000 Number of units Parts cost per unit Other costs: Direct labor Indirect materials Overhead Total $62,000 17,500 70,500 150,000 Vermont Instruments uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost per unit of the Fin-X and Sci-X models for June. Fin-X Total operation cost Total number of units Cost per unit Allocation of operation cost Units Operation cost (@ $3 per unit) Materials cost Total Cost Number of units Unit Cost 10,000 Sci-X 40,000 Total $150,000 50,000 $3 10,000 $30,000 $200,000 (10,000 * 20) $230,000 10,000 $23 40,000 $120,000 $1,000,000 (40,000 *25) $1,120,000 40,000 $28 50,000 $150,000 The cost of Fin-X per unit is $23.
| | | | | Direct Costs per Unit | $ 41.00 | $ 47.50 | $ 41.00 | | Units | 7,500.00 | 12,500.00 | 4,000.00 | | | | | | Overhead costs per Activity | Overhead Costs per Activity | | | | | Engineering Costs | $ 20,000.00 | $ 30,000.00 | $ 50,000.00 | | (Engineering hrs. * cost per engineer hr.) | | | | | Setup Costs | $ 2,500.00 | $ 12,500.00 | $ 25,000.00 | | (# of Runs * cost per Setup) | | | | | Shipping Costs | $ 5,000.00 | $ 35,000.00 | $ 110,000.00 | | (Shipments * cost
Sales (7950 units) Variable expenses Contribution margin Fixed expenses Net Operating Income $206,700 143,100 $63,600 56,000 $7,600 $26.00 18.00 $8.00 As an alternative, you could have found the net income using the following method: Original net operating income Change in contribution margin (-50 units * $8.00 per unit) New net operating income 3. The sales volume is 7,0000. $8,000 -400 $7,600 Sales (7000 units) Variable expenses Contribution margin Fixed expenses Net Operating Income $182,000 126,000 $56,000 56,000 $0 $26.00 18.00 $8.00 This is the company's break even point because it it the point where the contribution margin covers the fixed expenses and there is no net income/net loss (it is zero). Exercise 5-4 Computing and Using the CM Ratio Last month when Harrison Creations, Inc., sold 40,000 units, total sales were $300,000, total variable expenses were $240,000, and total fized expenses were $45,000. Required: 1.
Problems Answers Appear in Appendix B EASY PROBLEMS 1–5 (3–1) Days Sales Outstanding Greene Sisters has a DSO of 20 days. The company’s average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year. 13-2 DSO = 40 days; ADS = $20,000; AR = ?
($20,000* x 40%) *$300,000 -15,000 = 285,000 – 265,000 = $20,000 4. (TCO 2/3) Which of the following is not usually part of the pension formula under a defined benefit plan? (Points: 5) Age at retirement. Number of years of service. Seniority at time of retirement.
Basic present value calculations Calculate the present value of the following cash flows, rounding to the nearest dollar: a. A single cash inflow of $12,000 in five years, discounted at a 12% rate of return. Present Value | Rate per period | 0.567 | Cash Inflow | 12000 | Present Value | 6804 | b. An annual receipt of $16,000 over the next 12 years, discounted at a 14% rate of return. Present Value | Rate per period | 5.66 | Cash Inflow | 16000 | Present Value | 90560 | c. A single receipt of $15,000 at the end of Year 1 followed by a single receipt of $10,000 at the end of Year 3.
Error | Basic Salary | 31 | 5000 | 2000 | 7000 | 117100 | 3777.42 | 275.787 | 1535.515 | 2357806.452 | .579 | .421 | -.984 | .821 | Sales Of Product 1 | 31 | 943 | 45 | 988 | 8940 | 288.39 | 38.863 | 216.381 | 46820.712 | 1.513 | .421 | 2.883 | .821 | Valid N (list wise) | 31 | | | | | | | | | | | | | CONCLUSION: FOR BASIC SALARY AND SALE OF PRODUCT 1, 31 OBSERVATIONS HAS BEEN TAKEN FROM WHICH MINIMUM VALUE FOR BASIC SALARY RECORDED 2000 AND MAXIMUM 7000, FOR SALES OF PRODUCT 1 MINIMUM VALUE OBSERVED WERE 45 WHILE MAXIMUM WAS 988. SUM OF ALL THE VALUES TAKEN THROUGH OBSERVATIONS FOR BASIC SALLARY WAS 117100 AND FOR SALES OF PRODUCT 1 WAS 8940. AVERAGE VALUE OF OBSERVATIONS FOR BASIC SALARY WAS 3777.42 AND FOR SALES OF PRODUCT 1 IT WAS 288.39. STD. DEVIATION SHOWS THE VALUES GONE MORE THAN OR LESS THAN MEAN VALUE AND THAT IS 1535.515 TIMES FOR BASIC SALARY AND 216.381 TIMES FOR SALES OF PRODUCT 1 HAS BEEN OBSEREVED.
Using the 20-year T-Bond yield as the risk-free rate, the average beta of past 6 years, and the geometric mean of historical risk premium in the CAPM model equation to get the cost of equity (see Appendix A 1 for detail). CAPM = Rf + β*RP = 5.74% + 0.8 * 5.90% = 10.46% 3.