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2 years ago

Below is a set of projects aimed at cleaning up a city's recreational areas.

Business

1 answer:

Andru [333]2 years ago

3 0

Answer:

North Park $13,000 $16,000 N

Upper River Beach 6,000 8,000 Y

South Shore 29,000 30,000 Y

Green Creek 900 1,300 N

Explanation:

The cleanup will happen in the area where the marginal benefit is more than the marginal cost. the North park will not be cleaned up. River beach will be cleaned Up. South shore will be cleaned up. Green creak will not be cleaned up.

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Chrzan, Inc., manufactures and sells two products: Product E0 and Product N0. Data concerning the expected production of each pr

Molodets [167]

Answer:

Order size= $57.61 per machine hour

Explanation:

Giving the following information:

Order size:

Estimated total overhead= $581,866

Estimated total machine hours= 10,100

<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Order size= 581,866 / 10,100

Order size= $57.61 per machine hour

8 0

1 year ago

A proposed project has fixed costs of $83,000 per year. The operating cash flow at 9,100 units is $ 102,900. Ignoring the effect

natta225 [31]

Answer:

Ignoring the effect of taxes, what is the degree of operating leverage?

1.81

If units sold rise from 9,100 to 9,500, what will be the increase in operating cash flow?

$8,171.43 or 7.94%

what is the new degree of operating leverage?

1.75

Explanation:

degree of operating leverage = (units sold x contribution margin) / [(units sold x contribution margin) - fixed costs]

(units sold x contribution margin) - fixed costs] = $102,900

units sold x contribution margin = $102,900 + $83,000 = $185,900

degree of operating leverage = $185,900 / $102,900 = 1.81

contribution margin = $185,900 / 9,100 = $20.4286

operating cash flow (at 9,500 units) = (9,500 x $20.4286) - $83,000 = $111,071.43

operating cash flow will increase by $8,171.43 or 7.94%

new degree of operating leverage = $194,071.43 / $111,071.43 = 1.75

8 0

2 years ago

Feldspar Inc. is considering the capital structure for a new division. Management has been given the following cost information:

34kurt

Answer:

Option 4

Explanation:

In this question ,we have to compute the WACC which is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of common stock) × (cost of common stock)

For Option 1, it would be

= (0.3 × 10%) × ( 1 - 40%) + (0.7 × 12.5%)

= 1.8% + 8.75%

= 10.55%

For Option 2, it would be

= (0.4 × 10.5%) × ( 1 - 40%) + (0.6 × 13%)

= 2.52% + 7.8%

= 10.32%

For Option 3, it would be

= (0.5 × 11%) × ( 1 - 40%) + (0.5 × 13.5%)

= 3.3% + 6.75%

= 10.05%

For Option 4, it would be

= (0.6 × 11.7%) × ( 1 - 40%) + (0.4 × 14.2%)

= 4.212% + 5.68%

= 9.89%

For Option 5, it would be

= (0.7 × 13%) × ( 1 - 40%) + (0.3 × 15.5%)

= 5.46% + 4.65%

= 10.11%

So based on this, the management should accept option 4 as it derives the best debt asset ratio

The weightage of equity would be come

= 1 - weightage of debt

8 0

2 years ago

Quaker State Inc. offers a new employee a single-sum signing bonus at the date of employment. Alternatively, the employee can re

Hatshy [7]

Answer:

$80.364.45

Explanation:

The lump sum that would make the employee indifferent can be determined by calculating the present value of the annuity

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 0 = $10,000

Cash flow in year 1 = $40,000

Cash flow in year 2 = $40,000

I = 9%

PV = $80,364.45

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

6 0

2 years ago

The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year: Q1 Q2 Q3 Q4 Sales $ 830

Anika [276]

Answer and Explanation:

a. Q1 Q2 Q3 Q4

Collection period is 45 days

cash collection of Current quarter sales (Total days in quarter- cash collection period)/total days in quarter (90-45)90=1/2

Beginning receivable (A) 420 415 430 470

Sales (B) 830 860 940 970

420+(830*1/2) 415+(860*1/2) 430+(940*1/2) 470+(970*1/2)

Ending receivables (A+B-C) 415.00 430.00 470.00 485.00

Collection period is 60 days

cash collection of Current quarter sales (Total days in quarter- cash collection period)/total days in quarter (90-60)90=1/3

Beginning receivable (A) 420 553.33 573.33 626.67

Sales (B) 830 860 940 970

420+(830*1/3) 553.33+(860*1/3) 573.33+(940*1/3) 626.67+(970*1/3)

Ending receivables (A+B-C) 553.33 573.33 626.67 646.67

c .

Collection period is 30 days

cash collection of Current quarter sales (Total days in quarter- cash collection period)/total days in quarter (90-30)90=2/3

Beginning receivable (A) 420 276.67 286.67 313.33

Sales (B) 830 860 940 970

420+(830*2/3) 276.67+(860*2/3) 286.67+(940*2/3) 313.33+(970*2/3)

Ending receivables (A+B-C) 276.67 286.67 313.33 323.33

4 0

1 year ago