Hi-Value Widgets can sell 50,000 units per year of a new widget at the price of...
Hi-Value Widgets can sell 50,000 units per year of a new widget at the price of $4 per unit. Variable cost is $2.5/unit. Fixed costs (including rent, administrative costs etc.) are $12,000 per year. The firm will need to invest $90,000 in equipment which is fully depreciated over the three-year life of the project. In addition, the project requires an initial $20,000 investment in net working capital. The tax rate is 34% p.a. and required return on equity is 20% p.a. should this project be accepted? Please give the calculation process.
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Hi-Value Widgets can sell 50,000 units per year of a new widget
at the price of...
Hi-Value Widgets can sell 50,000 units per year of a new widget at the price of...
Hi-Value Widgets can sell 50,000 units per year of a new widget at the price of $4 per unit. Variable cost is $2.5/unit. Fixed costs (including rent, administrative costs etc.) are $12,000 per year. The firm will need to invest $90,000 in equipment which is fully depreciated over the three-year life of the project. In addition, the project requires an initial $20,000 investment in net working capital. The tax rate is 34% p.a. and required return on equity is 20%...
Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but...
Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: $42 Sales price per unit Variable costs per unit: $24 Manufacturing Marketing and administrative $10 Total fixed costs: $78,000 $23,000 Manufacturing Marketing and administrative If a special sales order is accepted for 5,500 widgets at a price of $40 per unit, fixed costs remain unchanged, and no variable...
Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but...
Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production Sale price per unit $40 Variable costs per unit: Manufacturing Marketing and administrative $23 $5 Total fixed costs: Manufacturing Marketing and administrative $75,000 $22.000 If a special sales order is accepted for 2.900 widgets at a price of $33 per unit, foxed costs increase by $7.000, and variable...
Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but...
Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: Sales price per unit $42 Variable costs per unit: Manufacturing $22 O A. Increase by $89,600 O B. Increase by $212,800 O c. Decrease by $89,600 OD. Increase by $50,400 Click to select your answer. Marketing and administrative Total fixed costs Manufacturing Marketing and administrative $76,000 $24,000 If...
Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but...
Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: EB (Click the icon to view the data) If a special sales order is accepted for 2,800 widgets at a price of $36 per unit, fixed costs increase by $9,000, and variable marketing and administrative costs for that order are $3 per unit, how would operating income be...
Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but...
Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: Sales price per unit $42 Variable costs per unit: Manufacturing Marketing and administrative $24 S6 Total fixed costs Manufacturing Marketing and administrative $77,000 $23,000 lf a spec a sales or er is accepted or 6.5 wo gets a a pn e o 7 per unit, an xed costs...
Widget Inc manfactures widgets The company has the capacity to produce 100,000 widgets per year, but it currently p...
Widget Inc manfactures widgets The company has the capacity to produce 100,000 widgets per year, but it currently produces and ses 75 000 per year The following information relates to cum Sales price per unit Variable costs per un Marketing and administrative Maracturing S77000 Marketing and administrative $24000 a special sales order accepted for 5.300 widgets at a price of regular sales are not rected by the special order) p unit. Bred costs remain unchanged and no variable marketing and...
Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but...
Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: Sales price per unit S41 Variable costs per unit Manufacturing Marketing and administrative $23 $6 Total fred costs: Manufacturing $75,000 Marketing and administrative $24,000 Ha enorial sales are arranter for 5 winnettarin 37 narunt fiv e remain unchanged and a variable marketing and aiministrativash will O A. Increase...
Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but...
Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year The following information relates to current production: Sales price per unit $40 Variable costs per unit Manufacturing Marketing and administrative $22 $5 Total fixed costs: $78,000 $25,000 Manufacturing Marketing and administrative If a snecial eales order is accented for 6.900 widoets at a.price.of $42.ner.unit and fixed.costs.remain unchanned how would oneratinn income.he affected2.(NOTE Decrease by $103,500...
how do i solve Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, b...
how
do i solve
Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and solls 75,000 widgets per year. The following information relates to current production Sales price per unit $41 Variable costs per unit: Manufacturing Marketing and administrative $26 $10 Total foxed costs Manufacturing $80,000 Marketing and administrative $24,000 If a special sales order is accepted for 6.500 widgets at a price of $38 per unit, and food costs...
Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: $42 Sales price per unit Variable costs per unit: $24 Manufacturing Marketing and administrative $10 Total fixed costs: $78,000 $23,000 Manufacturing Marketing and administrative If a special sales order is accepted for 5,500 widgets at a price of $40 per unit, fixed costs remain unchanged, and no variable...
Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production Sale price per unit $40 Variable costs per unit: Manufacturing Marketing and administrative $23 $5 Total fixed costs: Manufacturing Marketing and administrative $75,000 $22.000 If a special sales order is accepted for 2.900 widgets at a price of $33 per unit, foxed costs increase by $7.000, and variable...
Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: Sales price per unit $42 Variable costs per unit: Manufacturing $22 O A. Increase by $89,600 O B. Increase by $212,800 O c. Decrease by $89,600 OD. Increase by $50,400 Click to select your answer. Marketing and administrative Total fixed costs Manufacturing Marketing and administrative $76,000 $24,000 If...
Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: EB (Click the icon to view the data) If a special sales order is accepted for 2,800 widgets at a price of $36 per unit, fixed costs increase by $9,000, and variable marketing and administrative costs for that order are $3 per unit, how would operating income be...
Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: Sales price per unit $42 Variable costs per unit: Manufacturing Marketing and administrative $24 S6 Total fixed costs Manufacturing Marketing and administrative $77,000 $23,000 lf a spec a sales or er is accepted or 6.5 wo gets a a pn e o 7 per unit, an xed costs...
Widget Inc manfactures widgets The company has the capacity to produce 100,000 widgets per year, but it currently produces and ses 75 000 per year The following information relates to cum Sales price per unit Variable costs per un Marketing and administrative Maracturing S77000 Marketing and administrative $24000 a special sales order accepted for 5.300 widgets at a price of regular sales are not rected by the special order) p unit. Bred costs remain unchanged and no variable marketing and...
Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: Sales price per unit S41 Variable costs per unit Manufacturing Marketing and administrative $23 $6 Total fred costs: Manufacturing $75,000 Marketing and administrative $24,000 Ha enorial sales are arranter for 5 winnettarin 37 narunt fiv e remain unchanged and a variable marketing and aiministrativash will O A. Increase...
Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year The following information relates to current production: Sales price per unit $40 Variable costs per unit Manufacturing Marketing and administrative $22 $5 Total fixed costs: $78,000 $25,000 Manufacturing Marketing and administrative If a snecial eales order is accented for 6.900 widoets at a.price.of $42.ner.unit and fixed.costs.remain unchanned how would oneratinn income.he affected2.(NOTE Decrease by $103,500...
how
do i solve
Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and solls 75,000 widgets per year. The following information relates to current production Sales price per unit $41 Variable costs per unit: Manufacturing Marketing and administrative $26 $10 Total foxed costs Manufacturing $80,000 Marketing and administrative $24,000 If a special sales order is accepted for 6.500 widgets at a price of $38 per unit, and food costs...
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