Gainsharing plans are:

Down Under Boomerang, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.

Sedbober [7]

Answer:

Explanation: please refer to the explanation section

Initial fixed asset Investment = 2.33million = 2 330 000

Modified Accelerated Cost recovery System

The Fixed Asset Falls under the 3 year MACRS class the project the asset which states that Asset Depreciation range Midpoint is 4 years or less The period for this project is 3 years

Estimated annual sales = $1735000

costs = $640,000

Initial Net working Capital investment = $300,000

Residual Value (Value of the fixed asset at the end) = $255,000

a. Projected Cash flows

Year 0

Cash outflows = 2 330 000 - 300 000 - 255 000 = 2375000

year 1 year 2 year 3

Estimated sales 1735000 1735000 1735000

costs -640000 -640000 -640000

Depreciation -791666.67 -791666.67 -791666.67

Residual Value 255000

Net sales 303333.33 303333.33 558333.33

Tax 25% -75833.33 -75833.33 -139583.33

Net Cash flows 227500 227500 418750

Depreciation = (2330 00 + 300 000 -255000)/3= 791666.67

Tax = Net sales x 25%

b Net Present Value (Required rate Return = 9%)

PV = 227500/(1+0.09)^1 + 227500/(1 + 0.09)^2 + 418750/(1+0.09)^3

Present Value of cash flows = 723549.63

Net Present Value = 723549.63 - 2630 000 = -1906450.37

The net present Value is Negative indicating the project will not bring positive returns

5 0

2 years ago

Benoit company produces three products—a, b, and

Lana71 [14]

My answer is: Produce Product C first, then followed by Product A. to maximize contribution margin. Product B will not be produced since the maximum number of pounds has already been used in producing Products C and A.

 PER UNIT
 PRODUCT A B C
 SELLING PRICE 80 62 81
 VARIABLE EXPENSES
 DIRECT MATERIALS 24 18 9
 OTHER VAR EXP. 24 25.4 43.65
 TOTAL VAR EXP 48 43.4 52.65
 CONTRIBUTION MARGIN 32 18.6 28.35
 CM RATIO 0.4 0.3 0.35
 
COMPANY CAN SELL 800 UNITS OF EACH PRODUCT PER MONTH.
 SAME RAW MATERIAL IS USED IN EACH PRODUCT.
 MATERIAL COSTS 3 PER POUND W/ A MAX OF 5,000 POUNDS EACH MONTH
 
PRODUCT DM UNIT COST NO. OF LBS
 A 24 3 8
 B 18 3 6
 C 9 3 3
 PRODUCT NO. OF LBS/UNIT MAX UNITS TOTAL NO. OF LBS
 A 8 800 6400
 B 6 800 4800
 C 3 800 2400
 TOTAL 13600
 LIMITATION: 5,000 POUNDS PER MONTH ONLY.

 required: 
 1. calculate the contribution margin per pound of the constraining resource for each product. 
 2. which orders would you advise the company to accept first, those for a, b, or c? which orders second? third?
 
PLS. SEE ATTACHMENTS FOR MY FULL COMPUTATIONS.

5 0

3 years ago

Brandon's wallet slips from his jacket pocket in the mall. By the time he realizes his wallet is missing and reports the loss, a

VikaD [51]

Answer:

$950

Explanation:

Since the total amount of items purchased by the thief is $950, then Brandon has to pay back the amount deducted from his card.

4 0

3 years ago

Which journal entry reflects the following transaction?:

Grace [21]

Answer:

The correct answer is Option A.

Explanation:

The concept of double entry says for every debit entry, there must be a corresponding credit entry. This is necessary for the journal entries to balance, that is, the total of the debit balance must always equal the credit balance.

The building purchased by BOC is an asset. So there is need to debit that account to recognize the asset. Since there was an outflow of cash to the tune of $50,000, we need to credit cash while the remaining balance being financed by mortgage will be credited to recognize the liability.

7 0

2 years ago

Mike started a calendar year business on September 1st of this year by paying 12 months of rent on his shop at $1,000 per month.

serious [3.7K]

Answer:

accrual method = $4000

cash method = $12000

Explanation:

given data

rent = $1000

time = 12 month

to find out

maximum amount of rent

solution

we know from 1 September mika start paying rent

so September to December = 4 months

so by accrual method

accrual method = rent × time

accrual method = 1000 × 4

accrual method = $4000

and

by cash method

cash method = rent × time

cash method = 1000 × 12

cash method = $12000

6 0

3 years ago