True or False.The type of powder used to dust prints will vary depending upon the weather conditions when the print is lifted.

A manufacturer of printed circuit boards is considering purchasing a new surface mount technology component placement system. Tw

Darina [25.2K]

Answer:

R is a better alternative because it has a higher NPV than Q.

Explanation:

Machines Q R

First costs $380,000 $395,000

Net annual revenue $150,000 in year 1, $152,500

increasing by $500

per year thereafter

Salvage value $4,000 0

Life, years 8 10

MACRS 7 year recovery:

year % Q R

1 14.29% 54,302 56,445.50

2 24.49% 93,062 96,735.50

3 17.49% 66,462 69,085.50

4 12.49% 47,462 49,335.50

5 8.93% 33,934 35,273.50

6 8.92% 33,896 35,234.00

7 8.93% 33,934 35,273.50

8 4.46% 16,948 17,617.00

net cash flow

year Q R

1 116,505.70 118,880.93

2 130,396.70 132,982.43

3 121,411.70 123,304.93

4 115,086.70 116,392.43

5 110,676.90 111,470.73

6 110,930.10 111,456.90

7 111,326.90 111,470.73

8 108,306.80 105,290.95

9 99,125

10 99,125

Using a financial calculator, I calculated the NPV using a 12% discount rate:

Q's NPV = $200,636.15
R's NPV = $259,221.01

6 0

3 years ago

GearOne Autos Inc. has shifted its research and development unit from its home country to Germany. This allows the company to be

Nikolay [14]

Answer: (B) Location economies

Explanation:

According to the question, the gear-one autos inc. basically acquire the benefits of the location economies. The location economies is effective strategy in the economics used in an organization for determining the location.

The main aim of the location economics is that it producing the identical products by using the consistent strategy. The location economics helps the organization in the latest development.

Therefore, Option (B) is correct.

3 0

3 years ago

In the month of June, Bedford Company sold 350 widgets. The average sales price was $34. During the month, fixed costs were $6,3

VikaD [51]

Answer:

Results are below.

Explanation:

Giving the following information:

In June, Bedford Company sold 350 widgets. The average sales price was $34. During the month, fixed costs were $6,320 and variable costs were 40% of sales.

First, we need to calculate the unitary variable cost:

Unitary variable cost= 34*0.4= $13.6

Now, we can determine the contribution margin per unit and the contribution margin ratio:

contribution margin per unit= selling price - unitary variable cost

contribution margin per unit= 34 - 13.6= $20.4

contribution margin ratio= contribution margin per unit/selling price

contribution margin ratio= 20.4/34

contribution margin ratio= 0.6

To calculate the break-even point in units and dollars, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 6,320/20.4

Break-even point in units= 310 units

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 6,320/0.6

Break-even point (dollars)= $10,533

To calculate the margin of safety, we will use the following formula:

Margin of safety= (current sales level - break-even point)

Margin of safety= 350*34 - 10,533

Margin of safety= $1,367

Finally, the desired profit is $4,000:

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (6,320 + 4,000) / 20.4

Break-even point in units= 506 units

Break-even point (dollars)= (fixed costs + desired profit)/ contribution margin ratio

Break-even point (dollars)= 10,320/0.6

Break-even point (dollars)= $17,200

3 0

3 years ago

The following selected information is from Princeton Company’s comparative balance sheets. At December 31 2017 2016 Common stock

lukranit [14]

Answer:

Princeton Company

The T-accounts are attached.

Explanation:

They can also be obtained as follows:

1. T-accounts to calculate the Cash received from the sale of its common stock during 2017:

Common Stock & APIC

Closing balance of common stock = $131,000

Closing balance of APIC = $593,000

less Opening balance of common stock = $126,000

less Opening balance of APIC = $355,000

Cash collected = $243,000

2. T-account to calculate the cash paid for dividends during 2017:

Retained Earnings:

Opening balance = $313,500

Add net income = $61,000

Less closing balance = $339,500

Cash Dividends paid = $35,000

Download xlsx

8 0

3 years ago

Jimenez Enterprises is incorporated in Arkansas. It generated a $5,000,000 profit on its overseas operations this year. Jimenez

anygoal [31]

Answer:

Consider the following explanation

Explanation:

Foreign tax credit allowable is the minimum of Federal Income Tax and Income tax paid in foreign country. Here, Jimenez had paid 40% (2,000,000/5,000,000) income tax in foreign country. So. Jimenez will only be eligible to take foreign tax credit of 1,050,000 i.e. 5,000,000 * 21% and there will be carryover of $950,000 (2,000,000 - 1,050,000) foreign taxes.

There is carryover tax when we cannot use the whole amount of foreign tax credit in the current year and the balance foreign tax is carried over to future years.

3 0

2 years ago