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9966 [12]
3 years ago
11

Hemisphere Electric may purchase equipment to manufacture a new line of wireless devices for home appliance control. The first c

ost of the equipment will be $90,000, and the life of the equipment is estimated to be 6 years with a salvage value of $10,000. Different people in marketing have provided revenue estimates that the devices will generate. The estimates range from a low of $10,000 to a high of $20,000, with an average of $16,000 per year. If the MARR is 7% per year, use PW to determine if these different estimates will change the decision to purchase the equipment.
The present worth of low estimate range is $___.
The present worth of average estimate range is $___.
The present worth of high estimate range is $___.
The $10,000 revenue estimate____to select the purchase.
The $16,000 revenue estimate____the purchase.
The $20,000 revenue estimat____the purchase.
Business
1 answer:
omeli [17]3 years ago
7 0

Answer:

hi how are you doing today Jasmine

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Cost flow relationships The following information is available for the first year of operations of Creston Inc., a manufacturer
valina [46]

Answer:

a. Cost of goods sold = Sales - Gross profit

Cost of goods sold = $12,755,000 - $5,359,700

Cost of goods sold = $7,395,300

b. Direct Material Cost = Materials purchased - Indirect materials - Materials inventory

Direct Material Cost = $4,251,600 - $185,500 - $298,900

Direct Material Cost = $3,767,200

c. Direct labor cost = Total manufacturing costs for the period - Direct materials cost - Other factory overhead - Indirect labor

Direct labor cost = $8,122,000 - $3,767,200 - $834,900 - $422,600

Direct labor cost = $3,097,300

4 0
3 years ago
Exercise 14-04 On October 31, the stockholders’ equity section of Cullumber Company consists of common stock $370,000 and retain
djverab [1.8K]

Answer:

Explanation:

1. Before action

The company is having the 37000 shares of $10 each outstanding.

Par value of outstanding shares = $10 * 37000 shares = $370,000

Common stock in excess of par = Total common stock - Par value of outstanding shares = $370,000 - $370,000 = 0

2. After stock dividennd

Stock dividend declared = 6% of 37,000 shares = 2,220 shares

Current market price of shares = $16 per share

Value of stock dividend declared = $16 * 2,220 = $35,520

Common stock in excess of par = $35,520 - $22,200 = $13,320

Total number of shares outstanding = 37,000 + 2,220 = 39,220

Total par value of common stock = 39,220 * $10 = $3,92,200

The stock dividend is declared out of the retained earnings.

Retained earnings after stock dividend = $904,000 - $35,520 = $868,480

3. After stock split

In this case, there is no financial impact. Only, the number of shares will get double because one share is split into two shares.

No. of outstanding shares = 37000 * 2 = 74000 shares

4 0
4 years ago
Pharrell, Inc., has sales of $602,000, costs of $256,000, depreciation expense of $62,500, interest expense of $29,500, and a ta
hjlf

Answer:

The earnings per share figure is $1.89

Explanation:

Sales of $602,000

Costs of $256,000

Depreciation expense of $62,500

Interest expense of $29,500

Tax rate of 40 percent.

-> Profit Before Tax  = Sales - Cost - Depreciation Expense - Interest expense

= $602,000 - $256,000 - $62,500 - $29,500

= $254,000

Net profit = Profit before Tax x (1 - Tax rate) = $254,000 * (1 - 40%) = $152,400

Earnings per share = (net profit - dividend paid for preferred stock)/ common stock outstanding = ($152,400-$44,500)/ 57,000

= $1.89

7 0
4 years ago
A decreasing-cost industry is one in which: a. contraction of the industry will decrease unit costs. b. input prices fall or tec
Bas_tet [7]

Answer:

B

Explanation:

When we talk of a decreasing cost industry, we refer to an industry in which the expansion of the industry will lead to a decrease in the unit production cost.

So with respect to the question at hand , the correct answer is that the input prices will fall as industry expands

The case of a a technological improvement is expected to drive a decrease in the input prices for production in the expanding industry

8 0
3 years ago
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