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Thepotemich [5.8K]
3 years ago
11

Lion Management Services is considering an investment of $75,000. Data related to the investment are as follows:

Business
1 answer:
irinina [24]3 years ago
8 0

Answer:

It will take 3.3 years to cover the initial investment.

Explanation:

Giving the following information:

Initial investment=$75,000

Year Cash Inflows

1 $20,000

2 23,000

3 17,000

4 50,000

5 20,000

<u>The payback period is the time required to cover the initial investment.</u>

Year 1= 20,000 - 75,000= -55,000

Year 2= 23,000 - 55,000= -32,000

Year 3= 17,000 - 32,000= -15,000

Year 4= 50,000 - 15,000= 35,000

To be more accurate:

(15,000/50,000)= 0.3

It will take 3.3 years to cover the initial investment.

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Answer:

Explanation:

The question was missing the actual amount of potatoes used and their actual price = 98,000 pounds at $0.85 per pound:

1. Determine the direct material price and quantity variances.

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direct material quantity variance =  SP x (AQ - SQ) = $1 x (98,000 - 95,000) = $3,000 unfavorable

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Since the actual price of potatoes was less than the standard price, the price variance was favorable. But since the actual quantity used was more than the standard quantity, the quantity variance was unfavorable.

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direct labor rate variance = AH x (AR - SR) = 2,100 x ($12.45 - $12.15) = $630 unfavorable

direct labor efficiency variance = SR x (AH - SH) = $14.15 x (2,100 - 2,000) = $1,415 unfavorable

4. Could the explanation for the labor variances be tied to the material's variances?

Probably the labor efficiency variance since more materials had to be processed, but the labor rate variance is completely independent from the materials variances.

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3 years ago
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morpeh [17]
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3 years ago
Dell is a product of the Digby company. Digby's sales forecast for Dell is 2079 units. Digby wants to have an extra 10% of units
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Answer:

Option (B) is correct.

Explanation:

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Taking current inventory into account, Dell's Production of 2,287 units After Adjustment have to be in order to have a 10% reserve of units available for sale.

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