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2 years ago

Chipman Inc. produces water pumps. Overhead costs have been identified as follows:

Business

1 answer:

Harman [31]2 years ago

4 0

Answer:

Please see below and attached as requested.

Explanation:

a. Calculate the activity rate for each activity

• Material handling $155.5

• Machine maintenance $2

• Set ups $1,233

b. Determine the amount of indirect costs assigned to each of the product.

• Economy $77,082

• Standard $78,055

• Premium $70,948.5

Please find attached detailed computation of the above answers.

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A manufacturing company producing medical devices reported $60,000,000 in sales over the last year. At the end of the same year,

kumpel [21]

Answer:

a) The company turn its inventory at 1.5.

b) Per unit inventory cost for a product that costs $1000 is $166.67.

Explanation:

a) number of units sold = ($60000000/year)*(1 unit/$2000)

= 30000 units/year

COGS = 30000 units/year*$1000/unit

= $30000000/year

inventory = $20000000

flow time = inventory/flow rate

= $20000000/30000000 per year

= 0.67 years

inventory turns = 1/flow rate

= 1/(0.67)

= 1.5

Therefore, The company turn its inventory at 1.5.

b) %inventory cost per computer = 25%*0.6667 years

= 16.667%

16.667%*$1000 = $166.67 per unit

Therefore, Per unit inventory cost for a product that costs $1000 is $166.67.

8 0

2 years ago

For each of the following scenarios, identify the number of firms present, the type of product, and the appropriate market model

bulgar [2K]

Answer:

c. Many

d. Differential

c. Monopolistic Competition

b. Few

c. Identical

a. Oligopoly

a. One

a. Unique

d. Monopoly

Explanation:

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.

An example of monopolistic competition are restaurants

A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms.

An example of a monopoly is a utility company

It is only the drug company that is permitted to sell the drug. So, it is the only firm in the industry. Also, it is the only firm that offers experimental AIDS drug, so its product is unique.

An Oligopoly is when there are few large firms operating in an industry. In the cab industry, it is a duopoly that exists. This is a type of oligopoly where there are only two firms in the industry. Consumers do not care about the cabs they enter or the different services offered by the companies, so, the product is identical

6 0

2 years ago

Draiman Guitars is offering 110,000 shares of stock in an IPO by a general cash offer. The offer price is $39 per share and the

Zolol [24]

Answer:

$3,596,800

Explanation:

The computation of net proceeds to the company is shown below:-

Net proceeds = Number of shares of stock × Offer price × (1 - Underwriter spread percent) - Administrative cost

= 110,000 × $39 × (1- 0.08) - $350,000

= 110,000 × $39 × 0.92 - $350,000

= $3,946,800 - $350,000

= $3,596,800

So, for determining the net proceeds we simply applied the above formula.

6 0

2 years ago

Siemens AG invests €80,000,000 to build a manufacturing plant to build wind turbines. The company predicts net cash flows of €16

Nat2105 [25]

Answer:

a) the payback period of this investment = 5.00 years

b) Net Present Value is €11,945,600

Explanation:

From the given information:

The payback period of this investment is determined by using the formula:

Payback Period = Cost of investment/ annual net cashflow

Payback Period = €80,000,000/€16,000,000

Payback Period = 5.00 years

Thus; the payback period of this investment = 5.00 years

b) What is the net present value of this investment?

The net present value of the investment is computed in the table below

interest rate of return i = 8%

no of year n = 8 years

The PV factor is for 8 years and 8% is:

Year 8% factor rate

1 0.9259

2 0.8573

3 0.7938

4 0.7350

5 0.6806

6 0.6302

7 0.5835

8 0.5403

5.7466

Cash Flow Select Chart Amount × PV Factor = PresentValue

Annual Table B1 16,000,000 × 5.7466 = 91,945,600

CashFlow (Using Excel)

Net Cash

Inflow 91,945,600

Less:

Investment 80,000,000

Net Present 11,945,600

Value

6 0

2 years ago

When organizations pollute the local community, _____ occurs as housing values decline, wealthy owners move, and neighborhoods b

Papessa [141]

Answer:

Gentrification occurs as the......

8 0

2 years ago