Answer:
$61,175
Explanation:
Base on the scenario been described in the question, we expected to solve for the future worth
The table of the cash flow is shows in the picture
We can find that by calculating the Future worth
Future Worth = {2,500 + 1,500(P/A 7%,10) 100 + (P/G 7%,10) } [F/P 7%, 20]
Future worth = { 2,500 + 1500(7.024) + 100(27.716)}
Future worth = $61,175
Answer:
The incremental annual net cash inflows provided by the new machine would be $2,525.
Explanation:
In order to calculate the incremental annual net cash inflows provided by the new machine we would have to use the following formula:
incremental annual net cash inflows=saving in annual operating cost+contribution earned on additional sales
=( $4,125-$3,730)+(21,300×$0.10)
=$395+$2,130
=$2,525
Hence, The incremental annual net cash inflows provided by the new machine would be $2,525.
Answer:
d.Yes, income will increase by $30,000
Explanation:
The net profit from this order = Revenue – all expense related = number of unit sold x (price per unit – cost per unit) =
6,000 boxes x (price $15 – Direct materials $6 - Direct labor $2 - Variable overhead $2 - Fixed overhead $3 but avoidable) = 6000 x (15-6-2-2-0) = $30,000
