Answer:
$2366
Explanation:
Given the following :
Cost formular for Cadavieco for its material and supplies is $1,990 per month plus $4 per vehicle.
That is :
Cost formular : 1990 + 4x
Where 1990 is the fixed cost
4x is the variable cost which depends on x, number of vehicles.
In November :
Planned activity = 94 vehicles
Actual activity : 54 vehicles
Therefore, materials and supplies in planning budget for November :
Fixed cost + 4(planned activity)
$1990 + $4(94)
$1990 + $376
= $2366
Answer:
$5,000 increase
Explanation:
Data provided as per the question is below:-
Contribution margin = $50
Increase units = 100
The computation of profit is shown below:-
Model 24 Sales Increase By 100 units
Profit will increase = Contribution margin × Increase units
= $50 × 100 units
= $5,000 increase
Therefore for computing the profit increase we simply multiply the contribution margin with increase units.
Answer:
c) Reject the project because the PI is .97
Explanation:
For recommendation, first we have to find out the profitability index which is shown below:
PI = Present value of Cash Inflows ÷ Initial Investment
= [($56,400 ÷ 1.155) + ($75,900 ÷ 1.1552)] ÷ $109,200
= [$48,831.17 + $56,895.49] ÷ $109,200
= $105,726.65 ÷ $109,200
= 0.97
Since as we can see that the profitability index is 0.97 and the required return is $1.06 so the project should be rejected