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Serjik [45]
3 years ago
5

The appropriate maintenance policy is developed by balancing preventive maintenance costs and breakdown maintenance costs. The p

roblem is that A. full breakdown costs are seldom considered. B. breakdown maintenance must be performed regardless of cost. C. preventive maintenance costs are very difficult to identify. D. preventive maintenance should be performed regardless of cost.
Business
2 answers:
natta225 [31]3 years ago
4 0

Answer:

A. full breakdown costs are seldom considered.

Explanation:

In Business economics, the appropriate maintenance policy is developed by balancing preventive maintenance costs and breakdown maintenance costs.

However, the problem is that full breakdown costs are seldom considered by businesses owners.

Full breakdown costs involves the process of identifying the individual elements that comprise the total cost of a particular product or service.

liq [111]3 years ago
3 0

Answer:

A. full breakdown costs are seldom considered.

Explanation:

In developing an appropriate maintenance policy a business will have to consider cost. It will balance preventive maintenance costs and breakdown maintenance costs.

This process requires a full breakdown of the costs imvolved. On the one hand cost of preventive maintenance should only include essential activities without which preventive measures will fail.

While breakdown maintenance cost will involve activities that will bring broken down processes and assets back to functionality as soon as possible.

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"Stephanie would like to purchase a bond that has a par value of $1,000, pays $100 at the end of each year in coupon payments, a
Rzqust [24]

Answer:

The price of the bonds = $951.963

Explanation:

<em>The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV) discounted at the yield rate  </em>

Value of Bond = PV of interest + PV of RV  

The PV of interest payment

A ×(1- (1+r)^(-n))/r

A- interest payment, r- interest rate, n- number of years

Interest payment  = 100

PV = 100× (1- 1.12^(-3))/0.12= 240.183

PV of redemption value  

PV = RV× (1+r)^(-n)

RV- Redemption value - 1,000, r- interest rate, number of years, number of years- 3

PV = 1000× 1.12^(-3) = 711.7802

The value of bond = 240.18 + 711.78= 951.963

The price of the bonds = $951.963

3 0
4 years ago
Use the cost information below for Sundar Company to determine the cost of goods manufactured during the current year:
wel

Answer: cost of goods manufactured during the current year:  $95,600

Explanation:

Cost of goods manufactured = Direct materials + Direct labor + Manufacturing Overhead

But

Manufacturing Overhead= Cost added during accounting period + beginning work-in-process - ending work-in-process

= $51,100 + $11,500 - $12,100

=$50,500

Cost of goods manufactured = Direct materials + Direct labor + Manufacturing Overhead

=$19,800 + $25,300 + $50,500

=$95,600

or Using the formulae

Costs Added = Direct Materials Used + Direct Labor + Factory Overhead

=$19,800 + $25,300 + $51,500 = $96,200

Cost of Goods Manufactured = Costs Added + Beginning Work in Process − Ending Work in Process Cost of Goods Manufactured

$96,200+ $11,500 - $12,100=$95,600

3 0
3 years ago
Mimi Company is considering a capital investment of $275,000 in new equipment. The equipment is expected to have a 5-year useful
SIZIF [17.4K]

Answer:

Payback Period: 11 Years

Net Present Value: $123,055

Profitability Index: 0.45

Internal rate of return: 53.48%

Annual rate of return: 38.18%

Explanation:

<u>Payback Period:</u>

The Cash Payback Period can be calculated from the following formula, when the cash inflows are even Cash flows:

Payback Period = Investment / Even Cash flow

Here total annual even cash flow = $25,000 + $80,000 = $105,000

By putting values, we have:

Payback Period = $275,000 / $25,000 = 11 Years

<u>Net Present Value:</u>

As we know:

Net present Value = Present Value of Cash inflow - Present Value of Cash Outflow

Here

Present Value of Cash Inflow = Even Cash flow * Annuity Factor

By putting values:

Present Value of Cash Inflow = $105,000 * 3.791 = $398,055

Now Present value of cash outflow which is investment will the same because the money is invested in the year zero.

Which means:

Net present Value = $398,055 - 275,000 = $123,055

<u>Profitability Index:</u>

The profitability Index can be calculated using the following formula:

PI = NPV / Investment

So by putting values, we have:

PI = $123,055 / $275,000 = 0.45

<u>Internal rate of return:</u>

At 10%, NPV is $123,055 so all we have to do is to use a higher cost of capital to find using the formula at the end, the breakeven rate of return at which NPV is zero.

So I choose 20%.

At 20%, annuity factor is 2.990 which is approximately 3.

So

NPV = $125,000 * 3 - $275,000 = $100,000

By putting values in the following formula:

IRR = Lower Percentage + (Higher percentage - Lower percentage) * (NPV at Higher Percentage) / (NPV at lower - NPV at higher)

By putting values, we have:

IRR = 10% + (20% - 10%) * ($100,000) / ($123000 - $100,000)

IRR = 10% + 10% * 4.348 = 53.48%

<u>Annual rate of return:</u>

Annual rate of return can be calculated using the following formula:

Annual rate of return = Earnings Before Interest and tax / Investment

Here

Earnings before interest and tax is $105,000

So by putting formula, we have:

Annual rate of return = $105,000 / $275,000 = 38.18%

8 0
4 years ago
On January 2, Boulder Co. assigned its patent to Castle Co. for royalties of 10% of patent-related sales. The assignment is for
Tema [17]

Answer:

$30,000

Explanation:

The computation of the royalty revenue reported is shown below:

= Patent-related sales for the year ×  given percentage

= $300,000 × 10%

= $30,000

The revenue is recognized when it is earned or realized so only $30,000 is to be reported as the royalty revenue

The remaining amount i.e $20,000 would be treated as an unearned royalty revenue

6 0
3 years ago
If individuals forecast future prices by examining the rates of inflationof the present and recent past, they are using:
german

Answer:

a. adaptive expectations

Explanation:

When we say someone is using adaptive expectations, it means that they are using past events or experiences in order to predict future behaviors or trends. This methodology is commonly used to predict inflationary rates and how they affect the prices of assets in the future. Generally people will believe that past events will tend to repeat themselves in the future.

3 0
3 years ago
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