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zaharov [31]
2 years ago
9

PortaCom manufactures notebook computers and related equipment. PortaCom's product design group developed a prototype for a new

high-quality portable printer. The new printer features an innovative design and has the potential to capture a significant share of the portable printer market. Preliminary marketing and financial analyses provided the following selling price, first-year administrative cost, and first-year advertising cost:
Selling Price $284 per unit
Administrative Cost $500,000
Advertising Cost $700,000
In the simulation model for the PortaCom problem, the preceding values are constants and are referred to as parameters of the model.
(a) An engineer on the product development team believes that first-year sales for the new printer will be 18,500 units. Using estimates of $50 per unit for the direct labor cost and $88 per unit for the parts cost, what is the first-year profit using the engineer's sales estimate?
(b) The financial analyst on the product development team is more conservative, indicating that parts cost may well be $101 per unit. In addition, the analyst suggests that a sales volume of 9,500 units is more realistic. Using the most likely value of $50 per unit for the direct labor cost, what is the first-year profit using the financial analyst's estimates?
Business
1 answer:
Alchen [17]2 years ago
7 0

Answer:

Instructions are below.

Explanation:

Giving the following information:

Selling Price $284 per unit

Administrative Cost $500,000

Advertising Cost $700,000

(a) Units= 18,500

Direct labor= $50

Direct material= $88

Sales= 18,500*284= 5,254,000

Variable costs= (50 + 88)*18,500= (2,553,000)

Contribution margin= 2,701,000

Administrative Cost= (500,000)

Advertising Cost= (700,000)

Net operating income= 1,501,000

B)Units= 9,500

Direct labor= $51

Direct material= $101

Sales= 9,500*284= 2,698,000

Variable costs= (51 + 101)*9,500= (1,444,000)

Contribution margin= 1,254,000

Administrative Cost= (500,000)

Advertising Cost= (700,000)

Net operating income= 54,000

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2. What is the number one type of lift truck accident?
coldgirl [10]
A forklift accident is the most common incident.
7 0
2 years ago
Great Western Southern purchased $525,000 of equipment four years ago. The equipment is seven-year MACRS property. The firm is s
tester [92]

Answer: $153,782.70

Explanation:

The MACRS allowance percentages are as follows, commencing with Year 1: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent.

In 4 years, the depreciation would be:

= Cost price * (4 year deprecation)

= 525,000 * (14.29% + 24.49% + 17.49% + 12.49%)

= $360,990

Book value :

= 525,000 - 360,990

= $164,010

Gain (loss) = Sale price - Book value

= 150,000 - 164,010

= ($14,010)

Tax payable = (14,010) * 27%

= ($3,782.70)

After-tax cash flow:

= Selling price - Taxes

= 150,000 - (-3,782.70)

= $153,782.70

<em>Note: If there are options, beware of rounding errors and pick nearest option. </em>

6 0
2 years ago
as a young entrepreneur, how can you show the responsible ways of purchasing activities on any possible situations you may consi
Helen [10]

Answer:

There are several ways in which a young entrepreneur can carry out purchasing activities responsibly, including:

1. Measured production of inventory or units of products- If an entrepreneur is producing bicycles for instance, (s)he should only spend on inventory that (s)he anticipates will be sold to customers or purchased by retailers. For example, let's assume that the entrepreneur has a purchase order from a retailer such as K-Mart for 500 bicycles. In this case the entrepreneur should only produce around 550 bicycles rather than 700 or 1000 bikes, thus, purchasing supplies and producing inventory in accordance with demand for his/ her bicycles.

2. Lowering costs of production where possible- Firstly, this can be done by purchasing supplies and materials for inventory in bulk. Secondly, the entrepreneur could outsource the manufacturing of his/her product to countries (such as China) where production costs are significantly cheaper.

4 0
2 years ago
Highly Suspect Corp. has current liabilities of $401,000, a quick ratio of 1.50, inventory turnover of 3.70, and a current ratio
Scrat [10]

Answer:

$3,115,770

Explanation:

Given:

Current ratio = 3.60

Current liabilities = $401, 000

Quick ratio = 1.50

Inventory turnover = 3.70

Current ratio is calculated by dividing your current assets by your current liabilities.

                     Current\ ratio = \frac{Current\ Assets}{Current\ Liabilities}

                                     3.60 = \frac{Current\ Assets}{401, 000}

                     Current Assets = 3.60 × 401,000

                                               = $1,443,600

                    Quick\ ratio = \frac{(Current\ Assets\ -\  Inventory)}{Current Liabilities}

                    1.50 = \frac{1,443,600\ -\  Inventory}{401,000}

                    1.50 × 401,000 = 1,443,600 - Inventory

                    601,500 = 1,443,600 - Inventory

                    Inventory = 1,443,600 - 601,500

                                     = $842,100

                    Inventory\ Turnover = \frac{Cost\ of\ Goods\ Sold}{Inventory}

                    3.70 = \frac{Cost\ of\ Goods\ Sold}{842,100}

                    Cost of Goods Sold = 3.70 × 842,100

                                                      = $3,115,770

8 0
2 years ago
For each of the following independent events, identify the account that would be debited and the account that would be credited.
My name is Ann [436]

Answer:

A. Received cash by issuing common stock

Debit: Cash

Credit: common stock

B. Received cash for services to be performed in the future.

Debit: Cash

Credit: unearned revenue.

C. Paid salaries payable

Debit: salaries payable

Credit: cash

D. Provided services on account.

Debit: accounts receivable

Credit: service revenue

E. Paid cash for operating expenses

Debit: operating expenses

Credit: cash

Explanation:

A. Received cash by issuing common stock

Debit: Cash

Credit: common stock

B. Received cash for services to be performed in the future.

Debit: Cash

Credit: unearned revenue.

C. Paid salaries payable

Debit: salaries payable

Credit: cash

D. Provided services on account.

Debit: accounts receivable

Credit: service revenue

E. Paid cash for operating expenses

Debit: operating expenses

Credit: cash

6 0
1 year ago
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