Efficiently scheduling material and labor is an example of _______________

Alfred Home Construction is considering the purchase of five dumpsters and the transport truck to store and transfer constructio

Neporo4naja [7]

Answer:

If the total number of days per year is 1,419 or less, then the company should obtain the services from the city. But if the total number of days per year is 1,420 or more, then the company should purchase the equipment.

Explanation:

alternative 1:

initial outlay = $125,000

useful life 8 years

depreciation per year = ($125,000 - $5,000) / 8 = $15,000

costs:

$40 per day

maintenance $2,000 per year

total annual costs = $40x + $2,000

alternative 2:

$125 x 45 sites = $5,625

$20x

total annual costs = $5,625 + $20x

how large does x need to be in order for alternative 1 to be better using a 12% discount rate

cash flows

year 0 = ($125,000)

year 1 = $40x + $2,000 - $5,625 - $20x = $20x - $3,625

year 2 = $20x - $3,625

year 3 = $20x - $3,625

year 4 = $20x - $3,625

year 5 = $20x - $3,625

year 6 = $20x - $3,625

year 7 = $20x - $3,625

year 8 = $20x - $3,625 + $5,000 = $20x + $1,375

I used the present value of an annuity formula, to determine the value of cash flow:

the PV annuity factor for 12% and 7 periods is 4.5638, so:

24,756.20 x 4.5638 = $112,982

$29,756.20 / (1.12⁸) = $12,018

total = $125,000

$20x - $3,625 = 24,756.20

$20x = $28,381.20

x = $28,381.20 / $20 = 1,419.06 days (including all 45 sites)

That means that if the total number of days per year is 1,419 or less, then the company should obtain the services from the city. But if the total number of days per year is 1,420 or more, then the company should purchase the equipment.

5 0

4 years ago

An agent lists a property for sale under an Exclusive Right to Sell listing. The agent finds a buyer who makes an offer that is

Masja [62]

The commission is cut from the buyers cost of the property

6 0

2 years ago

Scottsdale Manufacturing is organized into two divisions: Fabrication and Assembly. Components transferred between the two divis

Sindrei [870]

Answer:

1. The firm does not have excess capacity.

Minimum transfer price on full capacity = Variable Cost + Contribution to be Lost

Minimum transfer price on full capacity = $360 + ($600 - $360)

Minimum transfer price on full capacity = $360 + $240

Minimum transfer price on full capacity = $600

Transfer Price = $600 per Unit (Market price per unit).

2. The firm does have excess capacity. Minimum transfer price on excess capacity = $360 per Unit (Standard Variable Manufacturing cost per unit).

5 0

3 years ago

Unemployment compensation is a. not part of GDP because it is a transfer payment. b. part of GDP because the recipients must hav

Alex17521 [72]

Answer:

a. not part of GDP because it is a transfer payment.

Explanation:

Unemployment compensation includes the funds given to a worker who is currently without a job but actively seeking one. Usually, it is funded from the taxes given to the state by employers.

GDP is the measure (in terms of money) of all goods made or services given in a time period (usually a year) in a particular country. Since the unemployment compensation does not reflect any produced goods or services, it is a <em>transfer paymen</em>t. Thus, it is not included in the GDP.

4 0

3 years ago

When electra decided to produce its "pedal-assist" motor bike it had to adhere to speed regulations. the company found out, howe

Inessa [10]

<span>Electra experienced in this case the effect of legal, regulatory differences between the different markets in which they wished to introduce their new product. By choosing to use the lower motor speed, they eliminated the need to redesign the product for the various markets. Instead, one product could be produced and distributed worldwide.</span>

3 0

3 years ago

Efficiently scheduling material and labor is an example of ________________ decisions