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choli [55]
2 years ago
7

A firm that has recently experienced an enormous growth rate is seeking to lease a small plant in Memphis, TN; Biloxi, MS; or Bi

rmingham, AL. Prepare an economic analysis of the three locations given the following information:
Annual costs for building, equipment, and administration would be $45,200 for Memphis, $60,000 for Biloxi, and $100,000 for Birmingham. Labor and materials are expected to be $8 per unit in Memphis, $4 per unit in Biloxi, and $5 per unit in Birmingham. The Memphis location would increase system transportation costs by $50,000 per year, the Biloxi location by $60,000 per year, and the Birmingham location by $27,800 per year. Expected annual volume is 17,800 units.
Business
1 answer:
Alex_Xolod [135]2 years ago
4 0

Answer and Explanation:

The computation of economic analysis of the three locations is shown below:-

Memphis Total Cost is

= $45,200 + $8(17,800 units) + $50,000

= $237,600

Biloxi Total Cost is

= $60,000 + $4(17,900 units) + $60,000

= $191,600

Birmingham Total Cost is

= $100,000 + $5(17,800 units) + $27,800

= $216,800

In this way it is to be shown

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South Sea Baubles has the following (incomplete) balance sheet and income statement. BALANCE SHEET AT END OF YEAR (Figures in $
drek231 [11]

Answer:

South Sea Baubles

1. Shareholders' equity in 2015 and 2016 =   $300  and  $260 respectively.

2. Net working capital in 2015 and 2016 = $25 and $110 respectively.

3. Taxes paid in 2016 = $84.

4. Cash provided by operations during 2016 = $666.

5. South Sea's gross investment in fixed assets = $100 ($105 - $95).

Explanation:

a) Data and Calculations:

BALANCE SHEET AT END OF YEAR (Figures in $ millions)

Assets                                                     2015         2016

Current assets                                       $ 105       $ 215

Net fixed assets                                       950       1,050

Total assets                                         $1,055    $1,265

Current liabilities                                    $ 80       $ 105

Long-term debt                                       675         900

Total liabilities                                       $755     $1,005

Shareholders' equity                           $300        $260

Liabilities and Shareholders' Equity $1,055      $1,265

INCOME STATEMENT, 2016 (Figures in $ millions)

Revenue               $ 2,025

Cost of goods sold   1,105

Gross profit             $ 920

Depreciation              425

EBIT                          $495

Interest expense       255

Profit before taxes  $240

Income taxes (35%)    84

Net Income            $ 156

Cash provided by operations:

Net income =      $156

Depreciation        425

Working capital:

Current assets      110

Current liabilities (25)

Net cash           $666

8 0
3 years ago
How does buying a plant asset affect general ledger accounts
Tanzania [10]

Answer:

A plant asset will add to assets and subtract from liabilities.

Explanation:

The general ledger holds all of the information needed to prepare financial statements and includes assets, liabilities, equity, revenue and expenses.

I hope I understood the question and that this helps.

7 0
3 years ago
Which of the following is the most appropriate topic to address in a college application essay?
Aleksandr [31]

Answer:

C

Explanation:

because I feel that many individuals would select the most basic option, such as A or B.

5 0
2 years ago
When a country that imports shoes imposes a tariff on shoes, buyers of shoes in that country become worse off.
blondinia [14]
It is true because a country that imports a tariff on shoes buyers of shoes in that country don’t do well so the answer would be True
7 0
2 years ago
Product A is normally sold for $9.60 per unit. A special price of $7.20 is offered for the export market. The variable productio
Sophie [7]

Answer:

A. Differential Analysis dated March 16

                                    Reject            Accept

Sales revenue per unit  $0              $7.20

Variable production cost 0                5.00

Additional export tariff     0                 1.08

Total variable costs          0             $6.08

Net income                    $0                $1.12

B. The special order should be accepted.

2) Product B:

Revenue of $39,500

Variable cost of goods sold of $25,500

Variable selling expenses of $16,500

Fixed costs of $15,000

Operational loss $17,500

Differential Analysis of May 9

                                    Reject            Accept

Sales revenue             $0                $39,500

Variable costs:

Product                        $0                 25,500

Selling                          $0                  16,500

Fixed costs                  $15,000         15,000

Total costs                   $15,000      $57,000

Net loss                       $15,000       $17,500

B) Product B should be discontinued.

Explanation:

a) Data and Calculations:

Normal selling price per unit of Product A = $9.60

Special order price for the export market = $7.20

Variable production cost = $5.00 per unit

Additional export tariff = $1.08 ($7.20 * 15%)

Total variable production and export costs = $6.08

7 0
2 years ago
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