A coal-fired power plant can produce electricity at a variable cost of $0.07 per kilowatt-hour when running at its full capacity of 30 megawatts per hour, $0.16 per kilowatt-hour when running at 20 megawatts per hour, and $0.24 per kilowatt-hour when running at 10 megawatts per hour. A gas-fired power plant can produce electricity at a variable cost of $0.12 per kilowatt-hour at any capacity from 1 megawatt per hour to its full capacity of 5 megawatts per hour. The cost of constructing a coal-fired plant is $70 million, but it costs only $14 million to build a gas-fired plant.

Required:
a. Consider a city that has a peak afternoon demand of 80 megawatts of electricity. If it wants all plants to operate at full capacity, what combination of coal-fired plants and gas-fired plants would minimize construction costs?
b. How much will the city spend on building that combination of plants?
c. What will the average cost per kilowatt-hour be if you average over all 80 megawatts that are produced by that combination of plants?

Answers

Answer 1

Answer:

a-The construction of 2 coal-fired plants and 4 gas-fired plants will have minimum construction costs.

b-Total construction cost is $196 Million.

c-The average cost is $0.0825 per killowatt-hour.

Explanation:

a

In order to estimate the best combination of the two, consider the following linear programming model

[tex]30X+5Y\leq80\\X\geq0\\Y\geq0[/tex]

with minimizing function as [tex]70X+14Y[/tex]

This yeilds in the optimum solution of 2 coal fired plants and 4 gas fired plants with minimum construction costs.

The construction of 2 coal-fired plants and 4 gas-fired plants will have minimum construction costs.

b

The construction cost is as follows

Number of coal-fired plants=2

Number of gas-fired plants=4

Total Cost=(Cost of 1 Coal-Fired Plant*Number of coal-fired plants)+(Cost of 1 Gas-Fired Plant*Number of gas-fired plants)

[tex]\text{Total Cost}=(70\times 2)+(14\times4)\\\text{Total Cost}=140+56\\\text{Total Cost}=\$196 \text{Million}[/tex]

Total construction cost is $196 Million.

c

Average Cost of Electrici[tex]\text{Average Cost}=\text{Fraction of Coal-Fired}\times\text{Cost of Coal-Fired}+\text{Fraction of Gas-Fired}\times\text{Cost of Gas-Fired}\\\text{Average Cost}=\text{0.75}\times\text{0.07}+\text{0.25}\times\text{0.12}\\\text{Average Cost}=\$0.0525+\$0.03\\\text{Average Cost}=\$0.0825[/tex]ty production is given by estimating the share of electricity produced by coal-fired plants and gas-fired plants

Total energy=80 MW

Energy produced by Coal-Fired Plants at full capacity=2*30=60 MW

Energy produced by Gas-Fired Plants at full capacity=4*5=20 MW

Fraction of Coal-Fired Plants is given as

                                  [tex]\dfrac{\text{Coal-Fired Share}}{\text{Total Energy}}=\dfrac{60}{80}=0.75[/tex]

Fraction of Gas-Fired Plants is given as

[tex]\dfrac{\text{Gas-Fired Share}}{\text{Total Energy}}=\dfrac{20}{80}=0.25[/tex]

Cost of Producing KW-hr by Coal-Fired Plant is $0.07

Cost of Producing KW-hr by Gas-Fired Plant is $0.12

So

[tex]\text{Average Cost}=[\text{Fraction}_{Coal-Fired}\times\text{Cost per KW-hr}_{Coal-Fired}]+[\text{Fraction}_{Gas-Fired}\times\text{Cost per KW-hr}_{Gas-Fired}]\\\text{Average Cost}=(0.75\times0.07)+(0.25\times0.12)\\\text{Average Cost}=(0.0525)+(0.03)\\\text{Average Cost}=\$0.0825[/tex]The average cost is $0.0825 per killowatt-hour.


Related Questions

advantages and disadvantages of proxemics​

Answers

Answer:

Advantage::

it allows people to understand how different communities organise there Town and homes

How to account for this $45,000? I think, this could be as Salary or dividend.
When Scott and Allison are in the store, they are the only ones who operate the register. Scott admits that, because he is in too much of a hurry, he sometimes puts the cash in his pocket rather than take the time to ring up the sale. Having cash in hand allows him to pay his babysitter and other personal expenses. Though it was difficult for him to be certain, Scott estimated that transactions worth about $45,000 each year have been handled in this way. Scott confirmed that he has not filed a personal tax return since he started GPP because he has not taken a salary.

Answers

Answer:

Scott should file Personal tax return since he is running his expenses through the money he takes in hand.

Explanation:

Scott will have to file the tax return because he is taking $45,000 as a salary. It does not matter that the salary is run through bank account or through cash but personal tax return filing is necessary. He uses the money to fund his routine expenses and this is to be reported in personal tax filing.

Newberry, Inc., whose reporting currency is the U.S. dollar ($), has a subsidiary in Argentina, whose functional currency also is the $. The subsidiary acquires inventory on credit on November 1, 2017, for 230,000 pesos that is sold on January 17, 2018, for 267,000 pesos. The subsidiary pays for the inventory on January 31, 2018. Currency exchange rates are as follows:

November 1, 2017 $0.20
December 31, 2017 0.65
January 17, 2018 0.66
January 31, 2018 0.67

1. What amount does Newberry’s consolidated balance sheet report for this inventory at December 31, 2017?
a. $120,600.
b. $115,200.
c. $117,000.
d. $118,800.

2. What amount does Newberry’s consolidated income statement report for cost of goods sold for the year ending December 31, 2018?
a. $115,200.
b. $118,800.
c. $120,600.
d. $117,000.

Answers

Answer:

1. $46,000

2.$46,000

Explanation:

According to the scenario, computation of the given data are as follows,

Inventory price = 230,000 pesos

1. Consolidated balance sheet amount = Inventory price × Rate on November 1, 2017

= 230,000 × $0.20

= $46,000

2. Consolidated statement cost of goods sold for the year ending December 31, 2018  = Inventory price × Rate on November 1, 2017

= 230,000 × $0.20

= $46,000

The demand function is given by
D = 20 - p-p2 where D =
demand and p = price. Find the
elasticity of demand w.r.t. price
when price is 2​

Answers

Answer:

Q=120−4P

Explanation:

putting P = 20 we get

q= 40

we know that elasticity is quantity demanded / price  

20

40

​  

=2

hence the correct option: D

Tamarisk Corporation had the following activities in 2020. 1. Payment of accounts payable $711,000 4. Collection of note receivable $93,000 2. Issuance of common stock $247,000 5. Issuance of bonds payable $522,000 3. Payment of dividends $335,000 6. Purchase of treasury stock $49,000 Compute the amount Tamarisk should report as net cash provided (used) by financing activities in its 2020 statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Net cash select an option by financing activities $enter a dollar amount

Answers

Answer:

the Net Cash flow provided by financing activities is $385,000

Explanation:

The computation of the amount that should be reported as net cash provided or used by financing activities is shown below:

Cash flow from financing activities

Issuance of common stock $247,000

Issuance of bonds payable $522,000

Less:  Payment of dividends -$335,000

Less: Purchase of treasury stock -$49,000

Net Cash flow provided by financing activities $385,000

Hence, the Net Cash flow provided by financing activities is $385,000

WellWheats, Inc. produces breakfast cereal and sells each box, or unit, for $7. The company is projecting sales of 1,000 units for the month of March. There are 30 units in the beginning inventory. Each unit requires 20 ounces of raw materials and 0.20 direct labor hours to make. The company's policy is to keep ending finished goods inventory of 10% of the current month's sales. Selling and administrative expenses for the month have been budgeted at $2,000. If the direct labor cost per hour is $0.75, calculate the budgeted direct labor cost for the month of March.
A. $214.00
B. $160.50
C. $802.50
D. $236.00

Answers

Answer:

b. . $160.50

Explanation:

Projected Sales 1,000 units

Desired ending inventory = 10%*1,000 = 100 units

Beginning Inventory = 30 units

Required production = Projected Sales + Desired ending inventory - Beginning Inventory

Required production = 1,000 units + (10%*1,000 units) - 30 units

Required production = 1,000 units + 100 units - 30 units

Required production = 1,070 units

Labor hours per unit = 0.20

Cost per labor hour = $0.75

Budgeted labor cost for March = Required production*Labor hours per unit*Cost per labor hour

Budgeted labor cost for March = 1,070 units*$0.20*$0.75

Budgeted labor cost for March = $160.50

Hence, the budgeted labor cost for March is $160.50.

The Smith family wants to relocate to a neighborhood with better schools before their three-year-old goes to kindergarten. They talked with Byron about properties he has for sale in neighborhoods they would like to live in. They also mentioned to Byron that they both work and may need someone to help with in-home care for their child. Byron gave them Taylor’s name to call about childcare. The Smiths also said they were having a hard time getting loan approval, so Byron suggested that they call Travis. Which best describes the jobs performed by Byron, Taylor, and Travis?

a) Byron is a Customer Service Representative, Taylor is a Child Care Worker, and Travis is a Loan Counselor.

b) Byron is a Real Estate Manager, Taylor is a Nanny, and Travis is a Loan Counselor.

c) Byron is a Real Estate Manager, Taylor is a Preschool Teacher, and Travis is a Customer Service Representative.

d) Byron is a Home Counselor, Taylor is a Nanny, and Travis is a Property Manager.

Answers

Answer:

the correct answer is B)

Explanation:

Given that they spoke to Byron about properties that he wants to sell, that means he is a Real Estate Manager. Taylor came up because they needed in-home care. That makes Taylor a Nanny because Nannies are professionals who take care of babies in their own homes.

Loan counselors have no other major business besides advising people on issues relating to taking up a loan. Therefore that makes Travis a loan Counselor.

Cheers

Lifecycle Motorcycle Company is expected to pay a dividend in year 1 of $2, a dividend in year 2 of $3, and a dividend in year 3 of $4. After year 3, dividends are expected to grow at the rate of 7% per year. An appropriate required return for the stock is 12% (for both stages). Using the multistage DDM, the stock should be worth __________ today. Group of answer choices

Answers

Answer:

$67.95

Explanation:

Calculation to determine how much should the stock should be worth today.

First step is to calculate the dividend per year;

D4= D3(1+g) = 4(1.07) = $4.28

Second step is to calculate the PV of each dividend

PV (D1) =2 / (1.12)

PV (D1) = 1.7857

PV (D2) = 3/ (1.12²)

PV (D2) = 2.3916

PV (D3) = 4/ (1.12³)

PV (D3) = 2.8471

Fourth Step is to calculate the Value of Perp. at t=3

=[(4(1.07))/(.12-.07)]/1.12^3

=85.6/1.4049

=60.9296

Now let calculate how much should the stock should be worth today

Worth today = 1.7857+ 2.3916 + 2.8471 + 60.9296

Worth today=$67.95

Therefore Using the multistage DDM, the stock should be worth $67.95 today

Chesapeake Inc. acquired a registered trademark for $600,000. The trademark has a remaining legal life of 5 years but can be renewed every 10 years for a nominal fee. Chesapeake does not expect to renew the acquired trademark when the legal life is over. What amount of amortization expense should Chesapeake record for the trademark in the current year?
a. $0
b. $15,000
c. $40,000
d. $120,000

Answers

Answer:

d. $120,000

Explanation:

Amortization expense = Cost ÷ Estimated useful life

therefore

Amortization expense = $600,000 ÷ 5 = $120,000

Note ; In this case the legal life is the same as the useful life.

Bonita Company has a factory machine with a book value of $87,800 and a remaining useful life of 5 years. It can be sold for $32,000. A new machine is available at a cost of $455,100. This machine will have a 5-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $624,400 to $524,400. Prepare an analysis showing whether the old machine should be retained or replaced.

Answers

Answer: Old machine should be replaced.

Explanation:

The variable manufacturing cost will reduce by:

= 624,000 - 524,000

= $100,000

Over a period of 5 years this will be:

= 100,000 * 5

= $500,000

Selling the old machine would bring in $32,000:

= 500,000 + 32,000

= $532,000

The cost of the new machine would reduce this gross benefit by:

= 532,000 - 455,100

= $76,900

Net income will increase by a total of $76,900 over the 5 year period if the new machine is bought so it should be bought.

Waterways has a sales mix of sprinklers, valves, and controllers as follows.
Annual expected sales:
Sale of sprinklers 460,000 units at $26.50
Sale of valves 1,480,000 units at $11.20
Sale of controllers 60,000 units at $42.50
Variable manufacturing cost per unit
Sprinklers $13.96
Valves $7.95
Controllers $29.75
Fixed manufacturing overhead cost (total) $760,000
Variable selling and administrative expenses per unit:
Sprinklers $1.30
Valves $0.50
Controllers $3.41
Fixed selling and administrative expenses (total) $1,600,000
A) Determine the sales mix based on unit sales for each product.
B) Using the annual expected sales for these products, determine the weighted-average unit contribution margin for these three products.
C) Assuming the sales mix remains the same, what is the break-even point in units for these products?

Answers

Answer:

A.

Sales Mix is 23 : 74 : 3

B.

$567.17

C.

sprinklers = 95,726 units

valves  = 303,826 units

controllers = 12,486 units

Explanation:

the sales mix based on unit sales for each product

sprinklers = 460,000 units

valves  = 1,480,000 units

controllers = 60,000 units

this can then be expressed as :

460,000 : 1,480,000  : 60,000

expressed in lowest terms as :

23 : 74 : 3

the weighted-average unit contribution margin for these three products.

weighted-average unit contribution margin is the sum of contribution per units with the mix applied to each contribution margin.

unit contribution margin are

sprinklers = $12.54

valves  = $3.25

controllers = $12.75

weighted-average unit contribution margin =  $12.54 x 23 + $3.25 x 74 + $12.75 x 3 = $567.17

the break-even point in units for these products

break-even point in units = Fixed Cost ÷ Contribution per unit

                                          = ($760,000 + $1,600,000) ÷ $567.17

                                          = 4,162 units

Multiplying this with each mix we have :

sprinklers = 95,726 units

valves  = 303,826 units

controllers = 12,486 units

Bluebird, Inc., does not provide its employees with any tax-exempt fringe benefits. The company is considering adopting a hospital and medical benefits insurance plan that will cost approximately $9,000 per employee. To adopt this plan, the company may have to reduce salaries and/or lower future salary increases. Bluebird is in the 25% (combined Federal and state rates) bracket. Bluebird also is responsible for matching the Social Security and Medicare taxes withheld on employees' salaries (at the full 7.65% rate). The hospital and medical benefits insurance plan will not be subject to the Social Security and Medicare taxes, and the company is not eligible for the small business credit for health insurance. The employees generally fall into two marginal tax rate (MTR) groups.

Income Tax Social Security and Medicare Tax Total
0.15 0.0765 0.2265
0.35 0.0145 0.3645

The company has asked you to assist in its financial planning for the hospital and medical benefits insurance plan by computing the following:

Required:
a. How much taxable compensation is the equivalent of $9,000 of exempt compensation for each of the two classes of employees?
b. What is the company’s after-tax cost of the taxable compensation computed in part (a)?
c. What is the company’s after-tax cost of the exempt compensation?
d. Briefly explain your conclusions from the preceding analysis.

Answers

Answer:

a. The Before Tax Compensation for each of the two classes of employees are as follows:

Low (0.15) = $11,635.42

High (0.35) = $14,162.08

b. The Employer's after tax cost of taxable compensation for each of the two classes of employees are as follows:

Low (0.15) = $9,394.15

High (0.35) = $10,775.57

c. The Employer's after tax cost of exempt benefit for each of the two classes of employees are as follows:

Low (0.15) = $6,750

High (0.35) = $6,750

d. The cost in employer's after tax cost of exempt benefit will be less than employer's after tax cost of taxable compensation.

Explanation:

a. How much taxable compensation is the equivalent of $9,000 of exempt compensation for each of the two classes of employees?

Note: See part a of the attached excel file for the calculation of Before Tax Compensation for each of the two classes of employees.

From part a of the attached excel, the Before Tax Compensation for each of the two classes of employees are as follows:

Low (0.15) = $11,635.42

High (0.35) = $14,162.08

b. What is the company’s after-tax cost of the taxable compensation computed in part (a)?

Note: See part b of the attached excel file for the calculation of Employer's after tax cost of taxable compensation.

From part b of the attached excel, the Employer's after tax cost of taxable compensation for each of the two classes of employees are as follows:

Low (0.15) = $9,394.15

High (0.35) = $10,775.57

c. What is the company’s after-tax cost of the exempt compensation?

Note: See part c of the attached excel file for the calculation of Employer's after tax cost of exempt benefit.

From part c of the attached excel, the Employer's after tax cost of exempt benefit for each of the two classes of employees are as follows:

Low (0.15) = $6,750

High (0.35) = $6,750

d. Briefly explain your conclusions from the preceding analysis.

Comparing employer's after tax cost of exempt benefit in comparison and employer's after tax cost of taxable compensation, it can be seen that cost in employer's after tax cost of exempt benefit will be less than employer's after tax cost of taxable compensation.

Suppose the world price is​ $20. a. Is this country an exporter or an​ importer? A. exporter B. importer b. How many units of the good are​ exported/imported? nothing units c. Fill in the chart below. If your answer is​ negative, put a minus sign in front of the number. Area Before Trade Value After Trade Value Change Value Consumer Surplus ​$ nothing ​$ nothing ​$ nothing Producer Surplus ​$ nothing ​$ nothing ​$ nothing Total Welfare ​$ nothing ​$ nothing ​$ nothing d. Who gains when the country allows free international​ trade? A. consumers and the government B. consumers C. no one gains D. consumers and producers E. ​consumers, producers, and the government F. producers G. producers and the government H. the government Who loses from free trade in this​ case? A. the government B. no one gains C. consumers and the government D. producers E. consumers F. ​consumers, producers, and the government G. producers and the government H. consumers and producers ​Overall, is there a net gain or a net loss when the country moves from No Trade to Free​ Trade? A. net gain B. net loss What is the overall value of the gain or​ loss? ​$ nothing ​(if your answer is​ negative, put a minus sign before your​ answer).

Answers

Question Completion:

Answer:

1. This country is an

B. importer.

2. The units of the good that are exported/imported are 200.

3. Chart filling

Area                            Before Trade    After Trade     Change Value

                                           Value            Value  

Consumer Surplus ​          $4,000            $9,000                ​$5,000

Producer Surplus    ​         $4,000             ​$1,000              ​$−3,000

Total Welfare                   ​$8,000           ​$10,000                 ​$2,000

4. The group that gains when the country allows free international trade.

B. consumers

5. The group that loses from free trade in this case is:

D. producers

6. A. net gain

7. The overall value of the gain is $2,000

Explanation:

a) Data and Calculations:

Area                            Before Trade    After Trade     Change

                                       Value                  Value          Value  

Consumer Surplus ​          $?                          ​$?               ​$?

Producer Surplus    ​         $?                ​          ​$?               ​$?

Total Welfare                   ​$ ?                        ​ ​ $?                 ​$?

Consumer surplus = Total quantity demanded at consumer's price minus equilibrium quantity * equilibrium price

Producer surplus = Total quantity supplied at supplier's price minus equilibrium quantity * equilibrium price

Change value at consumer surplus = $5,000 ($9,000 - $4,000)

Change value at producer surplus = $-3,000 ($1,000 - $4,000)

Total welfare before trade = $8,000 ($4,000 + $4,000)

Total welfare after trade = $10,000 ($9,000 + $1,000)

The net gain from free international trade is the difference between the total welfare value after trade and before trade = $2,000 ($10,000 - $8,000)

_______regulation applies to specific​ industries, whereas _______economic social regulation applies to businesses throughout the economy. Governments commonly regulate the prices and quality of services provided by​ electric, gas, and other​ utilities, which traditionally have been considered____technological oligopolistic geographic natural monopolies. Governments also single out various nonmonopolistic​ industries, such as the financial and transportation​ industries, for special forms of ______ economic social regulation. Among the common forms of ____ economic social regulation covering all industries are the​ occupational, health, and safety rules that federal and state governments impose on producers.

Answers

Answer:

Economic; social; natural; economic; social.

Explanation:

Generally, economic regulation are only applicable to business firms or organizations in a specific industry while social regulation is generally applicable to all of the business firms established throughout the economy or country.

A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.

For example, a public power company is an example of a monopoly because they serve as the only source of power utility provider to the general public in a society.

Governments commonly regulate the prices and quality of services provided by​ natural monopolies.

The Occupational Safety and Health Administration (OSHA) is a federal agency saddled with the responsibility of assuring and ensuring safe and healthy working conditions for employees by setting and enforcing standards, providing education, trainings and assistance to various organizations.

how can technological innovation help a company become globalised​

Answers

Answer: Technology is the vital force in the modern form of business globalization. ... Technology has helped us in overcoming the major hurdles of globalization and international trade such as trade barrier, lack of common ethical standard, transportation cost and delay in information exchange, thereby changing the market place.

Explanation:

Other things equal, an appreciation of the U.S. dollar would Multiple Choice increase productivity and increase aggregate supply. decrease net exports and decrease aggregate demand. increase the prices of imported resources and decrease aggregate supply. decrease the supply of money and decrease aggregate demand.

Answers

Answer:

Other things equal, an appreciation of the U.S. dollar would:

decrease net exports and decrease aggregate demand.

Explanation:

The immediate effect of an appreciation of U.S. dollars is the decrease of net exports to other countries because the importers will find that importing goods from the U.S. is more expensive than importing from some other countries.  This drop caused by decreased exports also decreases aggregate demand of U.S. goods.  Therefore, excess inventory of U.S. goods in producers' warehouses will result, thus, reducing national productivity and GDP.

Other things equal, an appreciation of the U.S. dollar would decrease net exports and decrease aggregate demand. Thus, Option (B) is correct.

When the U.S. dollar appreciates, it becomes stronger compared to other currencies. This means that goods and services produced in the United States become relatively more expensive for foreign buyers.

As a result, U.S. exports become less competitive in the international market, leading to a decrease in the quantity of goods and services exported. A decline in exports reduces the net exports component of aggregate demand, as net exports are the difference between exports and imports.

A decrease in net exports directly contributes to a decrease in aggregate demand, as aggregate demand is the sum of consumption, investment, government spending, and net exports.

Thus, Option (B) accurately describes what happens when there is an appreciation of the U.S. dollar.

Learn more about the appreciation here:

https://brainly.com/question/31218023

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On January 1, Mitzu Co. pays a lump-sum amount of $2,750,000 for land, Building 1, Building 2, and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $671,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $579,500 and is expected to last another 19 years with no salvage value. The land is valued at $1,799,500. The company also incurs the following additional costs.
Cost to demolish Building 1 $345,000
Cost of additional land grading 195,000
Cost to construct new building (Building 3), having a useful life of 25 years and a $402,000 salvage value 2,242,000
Cost of new land improvement (Land Improvements 2) near Building 2 having a 20-year useful life and no salvage value 173,000
Allocate the costs incurred by Mitzu to the appropriate columns and total each column.
Allocation of Purchase Price Appraised Value Percent of Total x Total Cost of Acquisition = Apportioned Cost
Land $1,952,000 x $2,750,000 =
Building 2 $732,000 x $2,750,000 =
Land Improvements 1 $366,000 12% x $2,750,000 = 330,000
Totals $1,952,000 12% x = 330,000

Answers

Question Completion:

2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1.

Answer:

Mitzu Co.

1. Allocation of   Appraised Value  Percent  x Total Cost      = Apportioned

Purchase Price                             of Total   of Acquisition           Cost

Land                     $1,799,500     59%      x  $2,750,000  =  $1,622,500

Building 2               $671,000     22%       x  $2,750,000  =       605,000

Land Improve-

ments 1                $579,500      19%       x  $2,750,000  =       522,500

Totals                $3,050,000    100%                                 =  $2750,000

2. Journal Entry:

January 1:

Debit Land (demolishing Building 1) $345,000

Debit Land (additional land grading) $195,000

Debit Building 3 $2,242,000

Debit Land Improvements 2 $173,000

Credit Cash $2,955,000

To record the payment of additional costs incurred.

Explanation:

a) Data and Calculations:

Lump-sum amount paid $2,750,000

Additional costs incurred:

Land (demolishing Building 1) $345,000

Land (additional land grading) $195,000

Building 3 $2,242,000, having a useful life of 25 years and a $402,000 salvage value

Land Improvements 2 $173,000 near Building 2 having a 20-year useful life and no salvage value

A company is considering replacing an old piece of machinery, which cost $597,600 and has $351,400 of accumulated depreciation to date, with a new machine that has a purchase price of $483,600. The old machine could be sold for $64,900. The annual variable production costs associated with the old machine are estimated to be $157,400 per year for eight years. The annual variable production costs for the new machine are estimated to be $99,300 per year for eight years.

Required:
a. Prepare a differential analysis dated April 29 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine.
b. What is the sunk cost in this situation?

Answers

Solution :

                      Differential Analysis : April 29

                               Continue old machine       Replace old           Differential

                                                                             machine         effect on income

Revenue :                  (Alternative 1)                  (Alternative 2)       (Alternative 2)

Proceeds from

sale of old machine     0                                   64,900               64,900

Cost :

Purchase price             0                                  -483,600             -483,600

Variable

manufacturing cost    -1,259,200                   - 794,400               464800

Total cost                    -1,259,200                   -1278000               -18800

Income (loss)              -1,259,200                   -12131000              46100  

So the company should replace the sold machine.    

The sunk cost is = 597,000 - 351,400

                           = $245,600

                                                                                                         

Multiple Choice Question 47 Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders $ 105000 500 orders Machine Setup Setups 283500 450 setups Machining Machine hours 1462500 125000 MH Assembly Parts 1170000 1000000 parts Inspection Inspections 285000 500 inspections If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is

Answers

Answer:

Predetermined overhead rate= $22.53 per direct labor hour

Explanation:

Giving the following information:

Direct labor hours are estimated at 100,000 for the year.

Total estimated overhead for the period= (105,000 + 283,500 + 1,462,500 + 117,000 + 285,000) = $2,253,000

To calculate the predetermined overhead rate, we need to use the following formula:

Predetermined overhead rate= total estimated overhead / total amount of allocation rate

Predetermined overhead rate= 2,253,000 / 100,000

Predetermined overhead rate= $22.53 per direct labor hour

Robb Industries Inc. (RII) developed standard costs for direct material and direct labor. In 20X4, RII estimated the following standard costs for one of their major products, the 10-gallon plastic container.
Budgeted quantity Budgeted price
Direct materials 0.10 pounds $30 per pound
Direct labor 0.05 hours $15 per hour
During June RII produced and sold 5,000 containers using 490 pounds of direct materials at an average cost per pound of $32 and 250 direct manufacturing labor-hours at an average wage of $15.25 per hour.
a. What is June’s direct material price variance?
standard price 30 acutal quantity 490
actual price 32 direct material 980 unfavorable
b. What is June’s direct material efficiency variance?
standard price 30 actual quantity 490
standard quality 500 direct material 300 favorable
c. What is June’s direct labor rate variance?
standard rate 15 actual hours 450
actual rate 15.25 manufactoring labor variance 62.50 unfavorable
d. What is June’s direct labor efficiency variance?
standard hours 250 standard rate 15
actual hours 250 maunfaturing varience 0

Answers

Answer:

A. 980 unfavorable

B. 300 favorable

C. 62.50 unfavorable

D. 0

Explanation:

A. Calculation to determine June’s direct material price variance

Using this formula

Direct material price variance=Actual quantity(Standard price -Actual price)

Let plug in the formula

Direct material price variance=490 ($32 - $30) Direct material price variance=980 U

B. Calculation to determine June’s direct material efficiency variance

Using this formula

Direct material efficiency variance=Standard price (Actual quantity-Standard quality)

Let plug in the formula

Direct material efficiency variance=$30 (490 – 500)

Direct material efficiency variance= 300 F

C. Calculation to determine June’s direct labor rate variance

Using this formula

Direct labor rate variance=standard hours(actual rate -standard rate )

Let plug in the formula

Direct labor rate variance =250 dlh ($15.25 - $15.00)

Direct labor rate variance = $62.50 U

D. Calculation to determine June’s direct manufacturing labor efficiency variance

Direct manufacturing labor efficiency variance=[250 dlh - (5,000 x 0.05)] x $15

Direct manufacturing labor efficiency variance = 0

In the open economy macroeconomic model, the amount of dollars demanded in the market for foreign-currency exchange at a given real exchange rate increases if a. either U.S. imports or exports increase. b. either U.S. imports or exports decrease. c. either U.S. imports increase or U.S. exports decrease. d. either U.S. imports decrease or U.S. exports increase.

Answers

Answer:

d. either U.S. imports decrease or U.S. exports increase

Explanation:

International trade occurs when countries buy and sell between themselves. This results from one country's comparative advantage in producing a good over other countries.

As a result when a country exports a lot of goods it's currency is in high demand. This is because the other country has to buy in the home country's currency, so large volume of export means large demand for the country's currency.

It also follows that when it's imports decreases it's currency will also be in high demand since less of it is being given to buy foreign goods.

Hinck Corporation reported net cash provided by operating activities of $361,200, net cash used by investing activities of $150,800 (including cash spent for capital assets of $206,000), and net cash provided by financing activities of $78,900. Dividends of $126,900 were paid.

Answers

Answer:

$28,300

Explanation:

Missing word: "Calculate free cash flow."

Free cash flow = Operating cash flow - Capital expenditures - Dividends

Free cash flow = $361,200 - $206,000 - $126,900

Free cash flow = $28,300

So, the Free cash flow of Hinck Corporation is $28,300.

Using relevant examples discuss the five most important variables that may cause the market for
demand curve for labor to shift?

I will give brainliest

Answers

Answer:

An increase or decrease in the quantity demanded is shown as movement along the demand curve and is due to a change in price as shown in the graph on the prior page.  An increase or decrease in demand is shown by a shift in the demand curve. A change in the demand of a good or service is caused by something other than a change in the price of a good or service.  

Explanation:

When the demand curve shifts upward and to the right, it is indicative of an increase in demand

When the demand curve shifts downward and to the left, it is indicative of an increase or decrease in demand.

Demand:                           Demand                                  Explanation

                             increases or decreases?

Population increases               I                  There are more opportunities to buy          

                                                                     and sell.

Population decreases             D                      There are fewer opportunities to    

                                                                      buy and sell.

Increase in most people          I            When income goes up, people have a    s’ income                                               greater ability to buy.

Decrease in most peoples’     D         When income goes down, people have a

income                                                 diminished ability to buy.

Price of substitute increases    I           As the price of a substitute increases,  

                                                            the demand for the product under study

                                                            increases. (If consumers have substituted      

                                                            fish for meat, and the price of fish goes            

                                                            up, the demand for meat will increase.)

How do you do this journal entry for accounting?
- Now record the estimated cost of the returns. Estimated sales returns of $1,040, with cost of $333.

Answers

Answer:

Journal Entries:

1. Debit Sales Returns & Allowance $1,040

Credit Accounts Receivable $1,040

To record the estimated cost of returns.

2. Debit Inventory $333

Credit Cost of goods sold $333

To record the estimated cost of the goods returned.

Explanation:

a) Data and Analysis:

1. Sales returns and Allowances $1,040 Accounts receivable $1,040

2. Inventory $333 Cost of goods sold $333

The first journal entry records the estimated returns to be made by the customers by debiting the Sales returns account (a contra account to the sales revenue account).  The corresponding credit entry in the Accounts receivable shows that a part of the accounts has been cancelled as a result of the estimated sales returns.

The second journal entry records the estimated cost of the goods to be returned by debiting the Inventory account and crediting the Cost of goods sold account.  This cancels earlier records.

Hubert lives in San Diego and runs a business that sells boats. In an average year, he receives $851,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $476,000; he also pays wages and utility bills totaling $281,000. He owns his showroom; if he chooses to rent it out, he will receive $71,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Hubert does not operate this boat business, he can work as an accountant, receive an annual salary of $34,000 with no additional monetary costs, and rent out his showroom at the $71,000 per year rate. No other costs are incurred in running this boat business.

Identify each of Bob's costs in the following table as either an implicit cost or an explicit cost of selling boats.

a. The salary Bob could earn if he worked as an accountant
b. The wholesale cost for the boats that Bob pays the manufacturer
c. The rental income Bob could receive if he chose to rent out his showroom
d. The wages and utility bills that Bob pays

Answers

Answer:

(a). Implicit cost

(b) Explicit cost

(c)  Implicit cost

(d)  Explicit cost

Explanation:

Implicit cost are the cost which a person can earn in a period.

Explicit cost are the cost which a person pays in same period for other work.

So by this, we can clearly determine explicit and implicit cost for the following statements.

(a). Implicit cost (Because salary is an earning for Bob.)

(b) Explicit cost ( Because Bob pays an amount for different work)

(c)  Implicit cost (Because rental is an earning for Bob.)

(d)  Explicit cost ( Because Bob pays an amount for wages and utility)

In the balance sheet at the end of its first year of operations, Dinty Inc. reported an allowance for uncollectible accounts of $82,000. During the year, Dinty wrote off $32,000 of accounts receivable it had attempted to collect and failed. Credit sales for the year were $2,200,000, and cash collections from credit customers totaled $1,950,000. What accounts receivable balance would Dinty report in its first year-end balance sheet?

Answers

Answer:

$218,000

Explanation:

Account receivable balance = Credit sales - Cash collection - Wrote-offs

Account receivable balance = $2,200,000 - $1,950,000 - $32,000

Account receivable balance = $218,000

So, the accounts receivable balance would Dinty report in its first year-end balance sheet is $218,000

Explain why the following scenario fails to meet the definition of a staff position.
Situation: Carmen helps manufacture auto parts for a company that supplies a manufacturer. She is talking to her operations manager.
Carmen: "I created several designs and have chosen the best one. Here is a prototype. I can make as many as needed."

Answers

Answer:

They are the person who ships out already made designs and not ones who are supposed to make new design, that is usually done by a higher up staff manager.

Explanation:

i cant say for certain its correct but i would assume since she is only staff she wouldnt be able to make her own ones.

Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1). (Use appropriate factor(s) from the tables provided.)
Project A Project B
Initial investment $ (174,325 ) $ (152,960 )
Expected net cash flows in year:
1 41,000 44,000
2 60,000 53,000
3 72,295 68,000
4 87,400 81,000
5 59,000 30,000
For each alternative project compute the net present value.
Project A
Initial Investment $174,325
Chart values are based on:
i =
Year Cash inflow x Table factor = Present Value
1 =
2 =
3 =
4 =
5 =
Project B
Initial Investment $152,960
Year Cash inflow x Table factor = Present Value
1 =
2 =
3 =
4 =
5 =
For each alternative project compute the profitability index.
Choose Numerator: / Choose Denominator: = Profitability index
/ = Profitability index
Project A
Project B
2. Assume If the company can only select one project, which should it choose?
Project A or Project B

Answers

Answer:

Project A

NPV = $91,771.53

PI = 1.53

Project B

NPV = $79,390.69

PI = 1.52

Project A should be chosen because it has the higher NPV

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.  

When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.

Project A

Cash flow in year 0 = $ (174,325)  

Cash flow in year 1 = 41,000

Cash flow in year 2 =  60,000

Cash flow in year 3 = 72,295

Cash flow in year 4 = 87,400

Cash flow in year 5 = 59,000

I =  6%

NPV = $91,771.53

Project B

Cash flow in year 0 = (152,960 )

Cash flow in year 1 = 44,000

Cash flow in year 2 =  53,000

Cash flow in year 3 = 68,000

Cash flow in year 4 = 81,000

Cash flow in year 5 = 30,000

I =  6%

NPV = $ $79,390.69

profitability index = 1 + (NPV / Initial investment)

Project A = 1 +( $91,771.53  /$174,325) = 1.53

Project B = 1 + ( $79,390.69 / 152,960 = 1.52

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

At the beginning of 2021, Terra Lumber Company purchased a timber tract from Boise Cantor for $3,510,000. After the timber is cleared, the land will have a residual value of $720,000. Roads to enable logging operations were constructed and completed on March 30, 2021. The cost of the roads, which have no residual value and no alternative use after the tract is cleared, was $279,000. During 2021, Terra logged 620,000 of the estimated 6.2 million board feet of timber.Required:Calculate the 2021 depletion of the timber tract and depreciation of the logging roads assuming the units-of-production method is used for both assets. (Do not round intermediate calculations. Enter values in whole dollars.)

Answers

Answer:

A. $279,000

B. $27,900

Explanation:

A. Calculation for 2021 depletion of the timber tract

2021 Depletion=[($3,510,000 - $720,000) / 6.2 million] *$620,000

2021 Depletion=0.45x 620,000

2021 Depletion= $279,000

Therefore 2021 depletion of the timber tract is $279,000

B. Calculation to determine the depreciation of the logging roads

Depreciation=($279,000 / 6.2 million)*$620,000 Depreciation= 0.073*$620,000

Depreciation= $27,900

Therefore the depreciation of the logging roads is $27,900

____ is the measure of how much money you can make off each sale.

Answers

Answer:

Profit or net profit is the answer.

Explanation:

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