Answer:
Sandy Shores Corporation
J's Segment Contribution Margin is:
= $700,000.
Explanation:
a) Data and Calculations:
Sales revenue $1,300,000
Variable operating expenses 600,000
Contribution $700,000
Fixed expenses:
Traceable to J and controllable by J 275,000
Traceable to J and controllable by others 80,000
Total fixed expenses 355,000
Net operating income $345,000
b) The contribution margin is the difference between total sales revenue and the variable costs. The idea of segment contribution margin is that it covers the fixed expenses, whether controllable by the segment or not.
Answer:
Net Present Value = $59,632.78
Explanation:
<em>The net present value NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project.
</em>
<em>NPV = PV of cash inflow - PV of cash outflow
</em>
Present value of cash inflow:
65,000 × (1.09375)^(-1) + 98000
×(1.09375)^(-2)+ 126,000
×(1.09375)^(-3)+ 132,000 × (1.09375)^(-4)= 326882.7792
PV of annual maintenance cost :
=1,500 × (1- 1.09375^(-4))/0.09375
=4819.84773
NPV = 26882.7792 - 4819.84773
- (255,000+12250)
= 59,632.78
Answer:
Baruch Shemtov's product is tie
Explanation:
Baruch Yehudah Shemtov was born on September 22, 1987.
Baruch has passionate about the design and the fashion from his young age, he was launched his first line of ties at just age 15 years.
he is a fashion entrepreneur since his junior class of high school
Today also Baruch ties routinely sellout in the tony department store and online
Baruch neckties and all accessories are made in USA
and In 2013, he launched boy ties collection and he coordinating with father-son neckties range at Bergdorf Goodman
Answer:
1,875,000 Economic Value Added
Explanation:
Net Operating Profit After Taxes - Invested Capital x Weighted Average Cost of Capital = Economic Value added
This represent the return on the shareholders after their investment return is paid. It is the value generated from the investent resources.
3,700,000 x ( 1- 0.25 ) = 2,775,000 Operating Income after taxes
18,000,000 x 5% = (900,000) Required Return
1,875,000 Economic Value Added
Answer:
Machine B has a higher NPV therefore should be produced
Explanation:
The machine with the higher Net Present Value (NPV) should be produced .
NPV of Machine A
PV of cash flow
PV of annual profit = A × (1- (1+r)^*(-n)/r
A- 92,000, n- 11, r- 12%
PV = 92,000 × (1- (1.12^(-11)/0.12 = 546268.32
PV of salvage value = 13,000× 1.12^(-11)= 3737.189
NPV = 546268.320 + 3737.189 -250,000 = $300,005.50
NPV of Machine B
A- 103,00, n- 19, r- 12%
PV = 103,000 × (1- (1.12^(-19)/0.12= 758675.0165
Pv of salvage value = 26000× 1.12^(-19)= 3018.776199
NPV =758675.0165 + 3018.77 -460,000 = $301,693.79
Machine B has a higher NPV , therefore should be produced.
