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mojhsa [17]
3 years ago
12

Costs associated with the manufacture of miniature high-sensitivity piezoresistive pressure transducers is, $73,000 per year. A

clever industrial engineer found that by spending $16,000 now to reconfigure the production line and reprogram two of the robotic arms, the cost will go down to $58,000 next year and $52,000 in years 2 through 5. Using an interest rate of 10% per year, determine the present worth of the savings due to the reconfiguration. (Hint: Include the reconfiguration cost.)
Business
1 answer:
Ilia_Sergeevich [38]3 years ago
3 0

Answer:

$58,149

Explanation:

Calculation to determine the present worth of the savings

First step is to calculate for Present worth before

Present worth before= 73,000(P/A,10%,5)

Present worth before= 73,000(3.7908)

Present worth before= $276,728

Second step is to calculate for Present worth after

Present worth after= 16,000 + 58,000(P/F,10%,1) + 52,000(P/A,10%,4)(P/F,10%,1)

Present worth after= 16,000 + 58,000(0.9091) + 52,000(3.1699)(0.9091)

Present worth after=16,000+52,728+149,851

Present worth after= $218,579

Last step is to calculate for Present worth of savings using this formula

Present worth of savings=Present worth before-Present worth after

Let plug in the formula

Present worth of savings = 276,728–218,579

Present worth of savings= $58,149

Therefore the present worth of the savings will be $58,149

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The town of Sanford, Maine, decided to auction off a plot of land owned by the town. The town advertised that it would accept bi
rodikova [14]

Answer:

The answer is: Both parties could win, depending if there were other conditions established for the auction.

Explanation:

Usually when an auction is carried out there are conditions established beforehand by the auctioneer that must be fulfilled in order for the sale to be completed.

In this case, since we don´t know what other conditions the town of Sanford included in the auction, if any other condition at all, we can´t conclude which party could win the lawsuit. For instance if a reserve was required but Arthur and Arlene didn´t do the reserve deposit, then they will obviously lose. The same happens with other established conditions like a minimum price set, etc. But if no other condition established, then Arthur and Arlene could win.

5 0
3 years ago
In a small​ town, a steel mill produces air pollution. if the government does not​ intervene, the equilibrium price of steel wil
JulijaS [17]

Answer: a. less than the socially optimal​ price, greater than the socially optimal quantity

Explanation:

The steel mill is producing steel and selling at a rate that does not account for the pollution that it is causing. Because of this, it is selling at a lower equilibrium price than what it would had the Pollution been accounted for.

The Steel Mill is also selling quantity that is greater than what would be considered socially optimal because the socially optimal level would account for the pollution and adjust in such a way that the Pollution is minimized

3 0
3 years ago
A(n) _____ is an agreement among two or more two companies to join forces to pursue specific opportunities without actually merg
aalyn [17]
The answer is Joint Venture. It is the agreement or the business arrangement of two or more companies that agrees to share resources for a specific purpose without loosing their identities. The companies will share expenses, looses and profit associated with the venture but their other business interest will remain separate.
8 0
3 years ago
In 2018, the Barton and Barton Company changed its method of valuing inventory from the FIFO method to the average cost method.
Sati [7]

Answer:

In Barton and Barton Company's general journal, entry required include:

Debit Retained Earnings Account with $8.2 million

Credit Opening Inventory with $8.2 million

Being reversal of overstated inventory due to change from FIFO to Average cost method.

Explanation:

The debit entry to the Retained Earnings Account will reduce the balance by $8.2 million.  The effect of overstating the closing inventory is overstatement of the net income because the cost of sales was understated as a result of the inventory overstatement.

The credit entry to the Opening Inventory reduces the balance to the new balance based on the average cost method of $23.8 million.

The FIFO cost method or First-In, First-Out method is an inventory costing method that assumes that goods that were bought first were the ones to be sold first.  The inventory cost is therefore valued with the most recent quantity and cost price.

On the other hand, the Average Cost Method, also called the Weighted Average Cost Method, calculates the inventory cost by adding all the period's inventory and dividing it by the quantity for the period.  This gives an average cost which is in turn used to multiply the quantity of inventory at the end of the period to obtain the inventory cost.

Both methods are estimates that produce different results and affect the reported net income differently.  There is always the need for consistency in choosing the method to apply so that reported net income is not unduly distorted.

3 0
3 years ago
Quantities on hand at the end of one month may not be sufficient to last until the next month's count. If the company has taken
agasfer [191]

Answer:

True

Explanation:

The correct option is - True

Reason -

When the company is considering the quantities in stock available at the end of the month in duly setting their reorder level that indicates it creates buffer stock in company's account and not following just-in-time model, whereby the quantity being ordered when there is demand for the same.

Hereby the investment cost occurred while maintaining the inventory will be higher as comparison to just-in-time inventory model as the money is  blocked in the inventory and it will be recovered only when the inventory being sold.

3 0
3 years ago
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