ans:-
The profit from Alternative 1 : -
Profit = Total Revenue - Total cost
Total Revenue = 1,000,000 x 0.95
Total Revenue = $ 950,000
Total cost = Cost of material A + Cost of material B + Cost of material C + Other processing costs
Total cost = 1,000,000 x 0.05 x $ 3.45+ 1,000,000 x 0.19 x $ 1.07+ 1,000,000 x 0.14 x $ 1.88 + 1,000,000 x $ 0.16
Total cost = 799,000
Profit = $ 950,000 - $ 799,000
Profit = $ 151,000
------------------------------------------------------------------------------------
Profit from Alternative B
Total Revenue = 1,250,000 x $ 1.05
Total Revenue = $ 1,312,500
Total cost = 1,250,000 x 0.07 x 3.45 + 1,250,000 x 0.18 x 1.07 + 1,250,000 x 0.12 x 1.88 + 1,250,000 x 0.24
Total cost = $ 1,124,625
Profit = $ 1,312,500 - $ 1,124,625
Profit = $ 187,875
-----------------------------------------------------------------------
Profit from alternative C
Total revenue = 800,000 x 1.25
Total revenue = 1,000,000
Total cost = 800,000 x 0.075 x 3.45 + 800,000 x 0.26 x 1.07+ 800,000 x 0.17 x 1.88 + 800,000 x 0.23
Total cost = $ 869,240
Profit = 1,000,000 - $ 869,240
profit = $ 130,760
-----------------------------------------------------------------------------
Alternative 2 is to be choosen because it has a higher profit when compared to other alternatives .
--------------------------------------------------------------------------------------------------------------
1. A food processor is considering the development of a new line of product. Depending on...
2(b). In 2008 a new 21- KW power substation was built in Tippecanoe county of Indiana for 1.4 million dollars. A neighboring county is planning on building a similar though smaller substation in 2011. An 18- KW substation is planned for this county. The inflation rate between 2009 and 2011 has averaged 1.5% per year. If the power sizing exponent is 0.85 for this type of facility what is the estimated cost of construction? (8 pts.) 2(b). In 2008 a...
The Tuff Wheels was getting ready to start its development project for a new product to be added to their small motorized vehicle line for children. The new product is called the Kiddy Dozer. It will look like a miniature bulldozer, complete with caterpillar tracks and a blade. Tuff Wheels has forecasted the demand and the cost to develop and produce the new Kiddy Dozer. The table below contains the relevant information for this project. Development cost Estimated development time...
The Tuff Wheels was getting ready to start its development project for a new product to be added to their small motorized vehicle line for children. The new product is called the Kiddy Dozer. It will look like a miniature bulldozer, complete with caterpillar tracks and a blade. Tuff Wheels has forecasted the demand and the cost to develop and produce the new Kiddy Dozer. The table below contains the relevant information for this project. Development cost $ 800,000 Estimated...
Normal No Spacing Heading 1 Heading Problem 3.) P&S Enterprises, Operating Budgets Bilal Mehran P&S Enterprises (PSE) Manufacture and sell two products, G29 and H02. Each product requires Labor hours, Machine hours and (raw) Material Y. Price Std cost Labor hrs. Mach burs M atlY Per unit G29 $ 40/unit $21.50 4 tbs HO2 $ 60/unit $29.50 6 lbs The standard cost/unit of Matly is $3/lb. The Standard Labor rate is $15/ab hour. Overhead is applied using Machine hours as...
Todd Radford has invented a new type of low-friction broom. After giving the matter much thought, Todd is pretty sure he will quit his $2,000 per month job with a janitorial service and produce and sell the brooms full time. Todd will rent a small building and use it as a production plant. The rent will be $1,500 per month Todd will rent production equipment at a cost of $550 per month The cost of materials for each broom will...
Problem 1 Sugar Land Company is considering adding a new line to its product mix and the capital budgeting analysis is being conducted by a MBA student. The production line would be set up in urused space (Market Value Zero) in Sugar and main plant. Total cost of the machine is $300,000. The machinery has an economic if of 4 years and will be deprecated using MACRS for 3 year property dess. The machine will have a salvage value of...
please answer questions in excel Namaste Company manufactures a unique yoga mat. The company began operations December 1, 2018. Its accountant quit the second week of operations, and the company is searching for a replacement. The company has decided to test the knowledge and ability of all candidates interviewing for the position. Each candidate will be provided with the information below and then asked to prepare a series of reports, schedules, budgets, and recommendations based on that information. The information...
1.) Based on a predicted level of production and sales of 29,000 units, a company anticipates total variable costs of $113,100, fixed costs of $29,000, and operating income of $203,580. Based on this information, the budgeted amount of fixed costs for 26,000 units would be: Multiple Choice $159,400. $232,580. $29,000. $113,100 $101,400 2.) Product A has a sales price of $21 per unit. Based on a 12,000-unit production level, the variable costs are $9 per unit and the fixed costs...
Please help with part 4-9. I will highly apprecite it. The Business Situation Concrete Helmet Company is a newly formed company that manufactures bicycle helmets. The company began operations January 1, 2020. Its accountant quit the second week of operations, and the company is searching for a replacement. The company has decided to test the knowledge and ability of all candidates interviewing for the position Each candidate will be provided with the information below and then asked to prepare a...
I need help solving this problem PROBLEM M2 Objective che problem set is designed to enhance your understanding of job-order costing and accounting transactions associated with the process of manufacturing a product. Background De building was ready for production on January 15. In January an order was received from Hot Pots Ime sational retailer of kitchen equipment and another was received from Delta Retail, a bie box store. Ianuar production also included a job to build inventory of 15-inch skillets....