The cost of producing a good and getting it to the customers is called the ____

Sjostrom Corporation has provided the following contribution format income statement. Assume that the following information is w

egoroff_w [7]

Answer:

$24,800

Explanation:

Calculation for what the net operating income would be closest to

First step is to calculate the Selling price

Selling price $43 per units

($280,000 ÷ 7,000 units=$40 per unit)

($40 per unit + $3 per unit)

Second step is to calculate the Variable cost per price

Variable cost per price $26 per units

($182,000 ÷ 7,000 units)

Third step is to calculate the Unit sales

Unit sales 6,400 units

(7,000 units − 600 units)

Now let calculate the net operating income

Contribution margin $108,800

[($40 per unit-$26 per units)*6,400 units]

($17*6,400 units)

Less Fixed Expenses $84,000

Net operating income $24,800

($108,800-84,000)

Therefore the net operating income would be closest to: $24,800

3 0

2 years ago

When a company decides it will start running a production shift on the weekends which stakeholders will be most directly impacte

Alisiya [41]

The man maaaaaannnnnnn.

4 0

3 years ago

A project in its 26th week has an actual cost of $300,000. It was scheduled to have completed $325,000 worth of work at that poi

Setler79 [48]

Answer:

Cost Variance=$50,000

Schedule Variance =$25,000

Explanation:

Calculation for the cost and schedule variances for the project

a. Calculation for Cost Variance

Using this formula

Cost Variance=Earned Value-Actual Cost

Let plug in the formula

Cost Variance = $350,000 - $300,000

Cost Variance=$50,000

b. Calculation for Schedule Variance

Using this formula

Schedule Variance =Earned Value- Planned Value

Let plug in the formula

Schedule Variance = $350,000 - $325,000 Schedule Variance =$25,000

Therefore the cost will be $50,000 and schedule variances for the project will be $25,000

6 0

2 years ago

Amanda is playing a game of chance in which she rolls a number cube with sides numbered from to 1 to 6. The number cube is fair,

Keith_Richards [23]

Answer:

a. 0.75

b. elsa can expect to gain money. 0.75$

Explanation:

x = 1/6 = 0.166667

given an outcome of 1,

1$ win * 0.166667 = 0.166667

given an outcome of 2,

$2 win * 0.166667 = 0.33333

given an outcome of 3,

$3 win*0.166667 = 0.5

remember that if she has an out come of 4, 5 and 6 she loses 0.5 dollars

given an outcome of 4,

-$0.5 * 0.166667 = -0.083333

given an outcome of 5,

-$0.5 * 0.166667 = -0.083333

given an outcome of 6,

-$0.5 * 0.166667 = -0.083333

The expected value of playing the game = 0.166667+0.333333+0.5-0.083333-0.083333-0.083333

= 0.750001

<u>expected value of plying game = 0.75</u>

<u></u>

b. in the long run, after playing the game many times, Elsa can expect to gain money. she can expect to win 0.75$ per role. option 1

5 0

2 years ago

Perot Corporation is developing a new CPU chip based on a new type of technology. Its new chip, the Patay2 chip, will take two y

Monica [59]

Answer:

a. Net present value of this project is $12,181,000.

b. Net present value of this project is $19,743,000.

c. Net present value of this project is $342,000.

Explanation:

a. What is the net present value (at the discount rate of 10%) of this project? (Negative value should be indicated by a minus sign. Enter your answer in thousands of dollars. Round your answer to the nearest thousand.)

Present value of year 1 revenue = (Sales and production volume year 1 * Unit price year 1) / (1 + Discount rate)^1 = (250,000 * $820.00) / (1 + 10%)^1 = $186,363,636.36

Present value of year 2 revenue = (Sales and production volume year 2 * Unit price year 2) / (1 + Discount rate)^2 = (150,000 * $650.00) / (1 + 10%)^2= $80,578,512.40

Year 0 total cost = Development cost + Pilot testing + Debug + Ramp-up cost + Advance marketing = $20,000,000 + $5,000,000 + $3,200,000 + $3,000,000 + $5,400,000 = $36,600,000.00

Present value of Year 1 total cost = (Marketing and support cost + (Sales and production volume year 1* Unit production cost year 1)) / (1 + Discount rate)^1 = ($1,000,000 + (250,000 * $655.00)) / (1 + 10%)^1 = $149,772,727.27

Present value of Year 2 total cost = (Marketing and support cost + (Sales and production volume year 1* Unit production cost year 2)) / (1 + Discount rate)^2 = ($1,000,000 + (150,000 * $545.00)) / (1 + 10%)^2 = $68,388,429.75

Net present value of this project = Present value of year 1 revenue + Present value of year 2 revenue - Year 0 total cost - Present value of Year 1 total cost - Present value of Year 2 total cost = $186,363,636.36 + $80,578,512.40 - $36,600,000.00 - $149,772,727.27 - $68,388,429.75 = $2,180,991.74

Rounding to the nearest thousand, we have:

Net present value of this project = $12,181,000

b. Perot’s engineers have determined that spending $10 million more on development will allow them to add even more advanced features. Having a more advanced chip will allow them to price the chip $50 higher in both years ($870 for year 1 and $700 for year 2). What is the NPV of the project if this option is implemented? (Negative value should be indicated by a minus sign. Enter your answer in thousands of dollars. Round your answer to the nearest thousand.)

Present value of year 1 revenue = (Sales and production volume year 1 * Unit price year 1) / (1 + Discount rate)^1 = (250,000 * $870) / (1 + 10%)^1 = $197,727,272.73

Present value of year 2 revenue = (Sales and production volume year 2 * Unit price year 2) / (1 + Discount rate)^2 = (150,000 * $700) / (1 + 10%)^2= $86,776,859.50

Year 0 total cost = Development cost + Pilot testing + Debug + Ramp-up cost + Advance marketing + additional development cost = $20,000,000 + $5,000,000 + $3,200,000 + $3,000,000 + $5,400,000 + $10,000,000 = $46,600,000.00

Present value of Year 1 total cost = as already obtained in part a above = $149,772,727.27

Present value of Year 2 total cost = as already obtained in part a above = $68,388,429.75

Net present value of this project = Present value of year 1 revenue + Present value of year 2 revenue - Year 0 total cost - Present value of Year 1 total cost - Present value of Year 2 total cost = $197,727,272.73 + $86,776,859.50 - $46,600,000.00 - $149,772,727.27 - $68,388,429.75 = $19,742,975.21

Rounding to the nearest thousand, we have:

Net present value of this project = $19,743,000

c. If sales are only 200,000 the first year and 100,000 the second year, what would the NPV of the project be? Assume the development costs and sales price are as originally estimated. (Negative value should be indicated by a minus sign. Enter your answer in thousands of dollars. Round your answer to the nearest thousand.

Present value of year 1 revenue = (Sales and production volume year 1 * Unit price year 1) / (1 + Discount rate)^1 = (200,000 * $820.00) / (1 + 10%)^1 = $149,090,909.09

Present value of year 2 revenue = (Sales and production volume year 2 * Unit price year 2) / (1 + Discount rate)^2 = (100,000 * $650.00) / (1 + 10%)^2= $53,719,008.26

Year 0 total cost = Development cost + Pilot testing + Debug + Ramp-up cost + Advance marketing = $20,000,000 + $5,000,000 + $3,200,000 + $3,000,000 + $5,400,000 = $36,600,000.00

Present value of Year 1 total cost = (Marketing and support cost + (Sales and production volume year 1* Unit production cost year 1)) / (1 + Discount rate)^1 = ($1,000,000 + (200,000 * $655.00)) / (1 + 10%)^1 = $120,000,000.00

Present value of Year 2 total cost = (Marketing and support cost + (Sales and production volume year 1* Unit production cost year 2)) / (1 + Discount rate)^2 = ($1,000,000 + (100,000 * $545.00)) / (1 + 10%)^2 = $45,867,768.60

Net present value of this project = Present value of year 1 revenue + Present value of year 2 revenue - Year 0 total cost - Present value of Year 1 total cost - Present value of Year 2 total cost = $149,090,909.09 + $53,719,008.26 - $36,600,000.00 - $120,000,000.00 - $45,867,768.60 = $342,148.76

Rounding to the nearest thousand, we have:

Net present value of this project = $342,000

3 0

3 years ago

The cost of producing a good and getting it to the customers is called the _____ . penalty cost