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4 years ago

Production estimates for August are as follows:

Business

1 answer:

Minchanka [31]4 years ago

7 0

Answer:

Instructions are below.

Explanation:

Giving the following information:

Production:

Estimated inventory (units), August 1 12,000

Desired inventory (units), August 31 2,000

Expected sales volume (units), August 75,000

For each unit produced, the direct materials requirements are as follows:

Direct material A ($5 per pound) 3Ibs

Direct material B ($15 per pound) 1/2 Ib

First, we need to determine the number of pounds required.

Production= sales + desired ending inventory - beginning inventory

Production= 75,000 + 2,000 - 12,000= 65,000 units

Purchases in pounds:

Direct material A= 65,000*3= 195,000

Direct material B= 65,000*0.5= 32,500

Total pounds= 227,500

Now, the cost of direct material:

Direct material cost:

Direct material A= 195,000*5= $975,000

Direct material B= 32,500*15= $487,500

Total= $1,462,500

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Answer:

The Cadillac tax

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4 years ago

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Answer:

B) the same amount of capital and labor

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4 years ago

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3 years ago

Which type of investment offers both capital gains and interest income?

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3 years ago

Read 2 more answers

Siva, Inc., imposes a payback cutoff of three years for its international investment projects. Year Cash Flow (A) Cash Flow (B)

Digiron [165]

Answer:

The payback period for Silva Inc. is 3 years. If considering only this method of evaluating projects, Silva Inc will invest in project A and dismiss project B.

Payback period A=2,1539 years.

Payback period B= 3,0042 years

Explanation:

The payback period refers to the amount of time it takes to recover the cost of an investment. The payback period is the length of time an investment reaches a breakeven point.

Cash Flow A:

I0= - 70.000

1= 28000 = -42000

2= 38000 = -4000

3= 26000 = 22000

Payback period= full years until recovery +

unrecovered cost beginning year/Cashflow during year

Payback period A= 2 + (4000/26000)= 2,1539 years.

Cash Flow B:

I0= -80000

1= 20000 = -60000

2= 23000 = -37000

3= 36000 = -1000

4= 240000 = 239000

Payback period B= 3 + 1000/240000= 3,0042 years

The payback period for Silva Inc. is 3 years. If considering only this method of evaluating projects, Silva Inc will invest in project A and dismiss project B.

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3 years ago