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cupoosta [38]
3 years ago
9

Reep Construction recently won a contract for the excavation and site preparation of a new rest area on the Pennsylvania Turnpik

e. In preparing his bid for the job, Bob Reep, founder and president of Reep Construction, estimated that it would take four months to perform the work and that 10, 12, 14, and 8 trucks would be needed in months 1 through 4, respectively.
The firm currently has 20 trucks of the type needed to perform the work on the new project. These trucks were obtained last year when Bob signed a long-term lease with PennState Leasing. Although most of these trucks are currently being used on existing jobs, Bob estimates that one truck will be available for use on the new project in month 1, two trucks will be available in month 2, three trucks will be available in month 3, and one truck will be available in month 4. Thus, to complete the project, Bob will have to lease additional trucks.

The long-term leasing contract with PennState charges a monthly cost of $600 per truck. Reep Construction pays its truck drivers $20 an hour, and daily fuel costs are approximately $100 per truck. All maintenance costs are paid by PennState Leasing. For planning purposes, Bob estimates that each truck used on the new project will be operating eight hours a day, five days a week for approximately four weeks each month.

Bob does not believe that current business conditions justify committing the firm to ad- ditional long-term leases. In discussing the short-term leasing possibilities with PennState Leasing, Bob learned that he can obtain short-term leases of one to four months. Short-term leases differ from long-term leases in that the short-term leasing plans include the cost of both a truck and a driver. Maintenance costs for short-term leases also are paid by PennState Leas- ing. The following costs for each of the four months cover the lease of a truck and driver:

Col1 Length of Lease 1 2 3 4
Col2 Cost per Month $ 4000 $ 3700 $3225 $ 3040

Bob Reep would like to acquire a lease that minimizes the cost of meeting the monthly trucking requirements for his new project, but he also takes great pride in the fact that his company has never laid off employees. Bob is committed to maintaining his no-layoff policy; that is, he will use his own drivers even if costs are higher. Managerial Report Perform an analysis of Reep Construction%u2019s leasing problem and prepare a report for Bob Reep that summarizes your findings. Be sure to include information on and analysis of the following items:1. The optimal leasing plan2. The costs associated with the optimal leasing plan3. The cost for Reep Construction to maintain its current policy of no layoffs
Business
1 answer:
Setler79 [48]3 years ago
7 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Download xlsx
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Isaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the period of sale for financia
Sati [7]

Answer:

$148.3 million

Explanation:

Calculation to determine the deferred tax liability that Isaac would report in its year-end 2021 balance sheet

Using this formula

Deferred tax liability=Total future taxable income × Tax rate

Let plug in the formula

Deferred tax liability=(2022 137 million+2023 129 million+2024 162 million+2025 165 million)*25%

Deferred tax liability=$593 million*25%

Deferred tax liability=$148.3 million

Therefore the deferred tax liability that Isaac would report in its year-end 2021 balance sheet is $148.3 million

8 0
3 years ago
A company that uses the allowance​ method, writesminusoff a receivable of $ 6 comma 000. Prior to the journal​ entry, the credit
o-na [289]

Answer:

The net realizable value of Accounts Receivable = 1,985,538

Explanation:

The journal​ entry will be: Allowance for Uncollectible Accounts (Debit - Decreased) 6,000 and Accounts Receivable (Credit - Decreased) 6,000.

After the journal​ entry the credit balance in the Allowance for Uncollectible Accounts will be: 2,005,000 - 6000 = 1,999,000, and the debit balance in Allowance for Uncollectible Accounts will be: 19,462 - 6,000 = 13,462.

Then net realizable value of Accounts Receivable will be: 1,999,000 - 13,462 = 1,985,538.

3 0
3 years ago
List at least 6 things your credit card company must clearly disclose to consumers.
never [62]

It is important to review the credit card disclosure for information on APRs, Penalties, Grace periods, Minimum financing charges, Calculation methodologies, and Fees.

An explanation of all the fees, charges, interest rates, and conditions that a consumer can encounter when using the credit card is contained in a credit card disclosure. The legislation requires disclosure of this information by organizations that provide credit cards. The disclosures on credit cards offer clear information about costs and charges. They also encourage rivalry. To allow consumers to evaluate credit cards more effectively, it is legally necessary of all credit card companies to give the same price information. They can pick the one that better serves their tastes in terms of price.

The interest rate that a client will pay on outstanding balances is the most obvious example of a cost listed on a credit card disclosure. Basic elements like the monthly payment deadlines will also be covered in the disclosure.

Learn more about Credit Card here:

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8 0
1 year ago
The exercise price of the options is $100 per share, all options are European and the stock does not pay any dividend. The call
Ber [7]

Answer:

Stock Price is $98.70

Explanation:

given data

exercise price = $100 per share

call price = $25 per share

put price = $17 per share

mature time = 2 years

annual rate of interest = 5%

to find out

What is the stock price today

solution

we will use here Put Call Parity for find out Stock Price that is express as

C + \frac{100}{(1+r)^t} = S + P    .....................1

here C is call price and r is rate and t is time and S is Stock Price and P is put price so put all value in equation 1

C + \frac{100}{(1+r)^t} = S + P

25 + \frac{100}{(1+0.5)^2} = S + 17

solve it we get

P = $98.70

so Stock Price is $98.70

6 0
3 years ago
If an account has a credit balance it means​
Brums [2.3K]

Answer:

If the total of your credits exceeds the amount you owe, your statement shows a credit balance. This is money the card issuer owes you. You can call your card issuer and arrange to have a check sent to you in the amount of the credit balance.

Explanation:

Hope this help!!

6 0
2 years ago
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