Question 5 of 10

Cash Flows. Quick Computing currently sells 10 million computer chips each year at a price of $20 per chip. It is about to intro

Tema [17]

Answer:

Since net revenue has increased from $140 million to $246 million = $106 million by considering all costs thus all the costs and revenue shall be considered.

Explanation:

For calculating the present value, all the cost and revenue will be considered.

Original revenue = Sale of 10 million chips

10 million $\times$ $20 = $200 million

Less: Cost = 10 million $\times$ $6 = $60 million

Net Revenue = $140 million

In case of introducing new chips

Revenue will be as follows

12 million $\times$ $25 + 3 million $\times$ $20

= $300 million + $60 million = $360 million

Less: Costs 12 million $\times$ $8 + 3 million $\times$ $6

= $96 million + $18 million = $114 million

Net Revenue = $360 - 114 = $246 million

Since net revenue has increased from $140 million to $246 million = $106 million by considering all costs thus all the costs and revenue shall be considered.

3 0

2 years ago

When there is a shortage, rationing is a method of distributing goods by using prices.

Cerrena [4.2K]

True, rationing is the selling of scarce goods or services in events such as war. Items are distributed in fairness to each citizen and they have to take a ration book to say what they have or haven't had and how much of it they have had.

6 0

3 years ago

Shelton Co. purchased a parcel of land six years ago for $874,500. At that time, the firm invested $146,000 in grading the site

Oliga [24]

Answer:

$926,000

Explanation:

For computing the initial cost of the warehouse project, we consider the current value of the land i.e represent the opportunity cost and the land value which is purchased six years ago for $874,500 represent the sunk cost which is not recoverable now. So, this sunk cost is not relevant.

And, the lease cost is also not relevant as the lease period will be ended soon.

All other information which is given is not relevant. Hence, ignored it

3 0

3 years ago

ackson Inc. listed the following data for 2019: Budgeted factory overhead $1,530,000 Budgeted direct labor hours 90,000 Budgeted

Anastaziya [24]

Answer: $36 per machine hour

Explanation:

Assuming Jackson Inc. applied overhead based on machine hours, the firm's predetermined overhead rate for 2019 would be calculated by dividing the budgeted factory overhead by the budgeted machine hours. This will be:

= $1,530,000 / 42,500

= $36 per machine hour

5 0

2 years ago

Russ and Linda are married and file a joint tax return claiming their three children, ages 4, 7, and 18, as dependents. Their ad

hoa [83]

Answer:

$3,700

Explanation:

Given that

Adjusted gross income for the year 2019 = $415,300

Children ages = 4, 7, and 18 as dependents

Based on the given information, Russ and Linda's total child and other dependent credit for the year 2019 is

= (Maximum amount per qualifying child + non-refundable tax credit) - (deductible amount × age)

= ($2,000 × 2 + $500) - ($50 × 16)

= $4,500 - $800

= $3,700

After $400,000 the $50 is decreased for each and every $1,000

5 0

3 years ago