Answer: The options are given below:
A. $18.00
B. $1,036.80
C. $2.00
D. $7.20
E. $64.00
The correct option is D. $7.20
Explanation:
From the question above, we were given:
Annual demand = 100,000 units
Production = 4 hour cycle
d = 400 per day (250 days per year)
p = 4000 units per day
H = $40 per unit per year
Q = 200
We will be using the EPQ or Q formula to calculate the cost setup, thus:
Q = √(2Ds/H) . √(p/(p-d)
200=√(2x400x250s/40 . √(4000/(4000-400)
200=√5,000s . √1.11
By squaring both sides, we have:
40,000=5,550s
s=40,000/5,550
s=7.20
Answer:
a. 2.23
b. 3.21
Explanation:
a. Answer to Part A
Payback Period = Investment / Annual Cash Inflow
= 250000 / 112115
= 2.23
Answer to Part B
Payback Period = Investment / Annual Cash Inflow
= 200000 / 62375
= 3.21
Working Note
<em>Particulars Case A Case B
</em>
After Tax Income 72115 39000
Add: Depreciation 40000 23375
Cash Inflow 11,2115 62375
<em>Particulars Case A Case B
</em>
Cost of Machine 250000 200000
Less: salvage Value 10000 13000
Depreciable Value 240000 187000
Life of the Asset 6 8
Annual Depreciation 40000 23375
Answer:
The correct answer is option (B).
Explanation:
According to the scenario, the given data are as follows:
Total cost = $8,600
Total units = 400 Units
Direct labor hour per unit = 5
Variable cost = $1.50
So, we can calculate the fixed cost by using following formula:
Fixed cost = Total cost - Total Direct labor cost
Where, Total direct labor cost = $1.50 × 5 × 400 = $3,000
By putting the value in the formula, we get
Fixed cost = $8,600 - $3,000
= $5,600
Answer:
the new earnings per share will be 231 cents
Explanation:
Earnings per share is Earnings attributable to each Common Share.
Earnings Per Share = Earnings attributable to Holders of Common Stock/ Weighted Average Number of Common Shares
= $1,575 million/ (700 million-250/10000×700 million)
= $1,575 million/(700 million-17,2 million)
= 231 cents
