Homework Answers
Total units produced in one hour for alternative 1 = 5
Total labor required = 2
Wage rate per hour = 25
Total variable cost per hour = 25 * 2 = 50
Per unit cost = 50 / 5 = 10
If X units are produced, then Total variable cost = 10 * X
Last option is correct
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Consider the following two alternatives: Alternative 1 has a first cost of $485,000, an annual maintenance and oper...
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Consider the following two alternatives: Alternative 1 has a first cost of $325,000, an annual maintenance and operating cost of $20,575, and no salvage value. In addition, it requires two workers at a rate of $25/hour to output 5 units per hour Alternative 2 has an initial cost of $270.000, an annual maintenance and operating cost of $12.300, and a salvage value of $125,000. In order to produce 3 units in an hour, three workers are required a rate of...
8) Determine the capitalized cost of an alternative that has a first cost of $155,000, an...
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Alternative R has a first cost of $82,000, annual M&O costs of $52,000, and a $20,000...
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6. Analyze the two economic alternatives described below and seleot the annual interest rate of 7% for both alternatives. All values are in$. best one. Use an Alternative Initial Cost Yearly Operating Expenses Annual Revenues Salvage Value Life (years) 22,000 10,000 2,000 3,000 6,000 10.000 2
1.) Two alternatives are being considered to perform a given job. Both of these alternatives provide...
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please answer this i need it asap ill make sure to rate and give thumbs up! 4. The break-even point is to be determined for two production methods, one manual and the other automated. The manual m...
please answer this i need it asap ill make sure to rate and
give thumbs up!
4. The break-even point is to be determined for two production methods, one manual and the other automated. The manual method requires two workers at $18.00 per hour each. Together, their production rate is 40 units per hour. The automated method has an initial cost of $200,000, a 4-year service life, no salvage value, and annual maintenance cost is S5000. The variable cost for...
Consider the following two alternatives: Alternative 1 has a first cost of $325,000, an annual maintenance and operating cost of $20,575, and no salvage value. In addition, it requires two workers at a rate of $25/hour to output 5 units per hour Alternative 2 has an initial cost of $270.000, an annual maintenance and operating cost of $12.300, and a salvage value of $125,000. In order to produce 3 units in an hour, three workers are required a rate of...
8) Determine the capitalized cost of an alternative that has a first cost of $155,000, an annual maintenance cost of $72,000, and a salvage value of $78,000 after its 10-year life. Use an interest rate of 6%. a. a) $187,142 b.c) $1,256,890 c. d) $1,452,367 d. b) 5871,000 QUESTIONS 9) The construction cost of a park is $600,000. Annual maintenance and operating costs are $120,000 per year. At an interest rate of 10% per year, the capitatlized cost of the...
6. Analyze the two economic alternatives described below and seleot the annual interest rate of 7% for both alternatives. All values are in$. best one. Use an Alternative Initial Cost Yearly Operating Expenses Annual Revenues Salvage Value Life (years) 22,000 10,000 2,000 3,000 6,000 10.000 2
1.) Two alternatives are being considered to perform a given job. Both of these alternatives provide equal service. The cost data for each alternative are provided in the tables below: Alternative 1 900,000 100,000 Alternative 2 300,000 30,000 Initial Cost Salvage Value Life, years Annual cost of operation and maintenance Required return 15,000 20,000 20 T20 Use a conventional cost comparison and determine: (a) An equivalent annual cost comparison assuming infinite service need. Which one do you choose? Why? (b)...
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1. Alternative R has a first cost of $58,000, annual M&O costs of $26,000, and a $10,000 salvage value after 5 years. Alternative S has a first cost of $105,000 and a $50,000 salvage value after 5 years, but its annual M&O costs are not known. Determine the M&O costs for alternative S that would yield a required incremental rate of return of 12%.
please answer this i need it asap ill make sure to rate and
give thumbs up!
4. The break-even point is to be determined for two production methods, one manual and the other automated. The manual method requires two workers at $18.00 per hour each. Together, their production rate is 40 units per hour. The automated method has an initial cost of $200,000, a 4-year service life, no salvage value, and annual maintenance cost is S5000. The variable cost for...
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