Breakeven for Single Project Given: FC = 30,000.00 pesos/month v = 25.00 pesos/unit r = 35.00 pesos/unit Production = 4,320 units per month a. Breakeven Number of Units = ? b. Profit on Monthly Production = ?

Breakeven for Single Project Given: FC = 30,000.00 pesos/month v = 25.00 pesos/unit r = 35.00 pesos/unit Production = 4,320 units per month a. Breakeven Number of Units = ? b. Profit on Monthly Production = ?

Name: Breakeven for Single ProjectGiven:FC = 30,000.00 pesos/monthv = 25.00
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Description: Breakeven for Single ProjectGiven:FC = 30,000.00 pesos/monthv = 25.00 pesos/unitr = 35.00 pesos/unitProduction = 4,320 units per montha. Breakeven Number of Units = ?b. Profit on Monthly Production = ?

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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A company that makes food-friendly silicone (for use in cooking and baking pan coatings)is considering four independent projects shown, all of which can be considered to be viable for only 10 years. The company's MARR is 15% per year. Project A B C D First Cost, $ -1500 -2300 -5600 -7600 Annual net Income, $/year 200 460 1150 1200 Salvage value, $ 5 6 8 7 Determine which products to implement Financial values are in $1000 units. The present worth of project A is $___________, So project A is ___________(Rejected / Accepted) The present worth of project B is $___________, So project B is ___________(Rejected / Accepted) The present worth of project C is $___________, So project C is ___________(Rejected / Accepted) The present worth of project D is $___________, So project D is ___________(Rejected / Accepted)
1.You’re managing a project to install 400 windows in a new skyscraper and need to figure outyour budget. Each week of the project costs the same: your team members are paid a total of $4,000every week, and you need $2,000 worth of parts each week to do the work. If the project isscheduled to last 16 weeks, calculate theBAC, PV, EV, AC, SPI, SV, CPI, SPI, CV for the project? 2.You’re managing a highway construction project. Your total budget is $650,000, and there isa total of 7,500 hours of work scheduled on the project. You check with your accountingdepartment, and they tell you that you’ve spent a total of $400,000. According to the schedule,your crew should have worked 4,500 hours, but your foreman says that the crew was allowed towork some overtime, and they’ve put in 5,100 hours of work. Calculate theBAC, PV, EV, AC, SPI, SV, CPI, SPI, CV for the project?
WBS Element Planned Value(PV) Earned Value(EV) Actual Cost(AC) 2.01 Airframe 48000 48000 50000 2.02 Engines 22000 21000 23000 2.03 Avionics 80000 60000 45000 2.04 Communications 30000 30000 30000 2.05 Tech. Manuals 42000 42000 48000 2.06 Spares 40000 35000 42000 2.07 Training 80000 80000 86000 Project Total 342000 316000 324000 Figure 14.1 Drug Surveillance Aircraft Project - Monthly Performance Report (October 31, 20XX) Consider the project performance report presented in figure 14.1. What valid conclusion can you draw regarding the project schedule performance as of October 31, 20XX? Select one: a. The project is $26,000 behind schedule. b. The project is 18 days behind schedule. c. The project is $26,000 ahead of schedule. d. The project is $18,000 behind schedule.
Operational Plans are preared for • a. Usually 3 months b. All of these c. Usually for 5 years d. Usually one year
time 1 2 3 4 5 6 7 8 9 10 Returns on Project A 70.00% -24.00% 46.00% 46.00% 0.00% 9.00% -83.00% 68.00% -39.00% 112.00% Returns on Project B 63.00% -21.60% 41.40% 41.40% 0.00% 8.10% -74.70% 61.20% -35.10% 100.80% The risk of a portfolio composed of 50% in project A and 50% in project B is greater than the risk of either project A or Project B. True False
Major overhaul expenses of $5,000 each are anticipated for a large piece of earthmoving equipment. The expenses will occur at the end of the year four and will continue every three years thereafter up to and including year 13. The interest rate is 12% per year. a. Draw a cash-flow diagram b. What is the present equivalent of the overhaul expenses at time 0? c. What is the annual equivalent expense/annuity during only years 5-13?
Sorin Incorporated, a company that produces and sells a single product, has provided its contribution format income statement for January. Sales (3,400 units) Variable expenses Contribution margin $ 112,200 50,490 61,710 Fixed expenses 45,700 Net operating income $ 16,010 If the company sells 3,900 units, its total contribution margin should be closest to: (Do not round intermediate calculations.) Multiple Choice $61,710 $70,785 $92,700 $18,364
What adjustments to the basic breakeven calculation must be made to include target returns?
2. A toy manufacturer has three different mechanisms that can be installed in a doll that it sells. The different mechanisms have three different setup costs (overheads) and variable costs and, therefore, the profit from the dolls is dependent on the volume of sales. The anticipated payoffs are as follows. Light Demand 0.25 $325,000 $300,000 -$400,000 Heavy Demand 0.3 Probability Wind-up action Pneumatic action Electrical action Moderate Demand 0.45 $190,000 $420,000 S170,000 $400,000 $800,000 $240,000 a. What is the EMV of each decision alternative? b. Which action should be selected? c. What is the expected value with perfect information? d. What is the expected value of perfect information? e. What is the expected opportunity loss?
B. Match between column A and column B (14 Marks) A Breakeven point method Indirect cost PERT Calculate schedule Classification by Variability Depreciation and administrative expenses Project Planning/Scheduling Total float Provides contingency Difficult to establish and maintain for a large project Probability of completion before a specified date slack time СРМ Gantt Chart
Company X is purchasing a new machine for $949000. The annual expenses, in today's dollars, is estimated to be $92400. Assume that the inflation rate is 0.08 and the company X' real MARR is 0.11 per year. The depreciation for this type of machine is best represented using the declining-balance method where R= 0.29. The project is estimated to last for 9 years. a) What is the BV at year 7? b) What is the PW of these expenses? c) What is the actual value of MARR? Knowing that the project will last for 9 years, what minimum Uniform Annual Revenue, in actual dollars, would this machine need to generate to benefit?
Consider a project with an initial investment of $60,000, a 6 year useful life (and study period), and a $10,000 salvage value. You expect an annual net revenue of $15,000 (before tax), a MARR before tax of 15.3%, and an effective tax rate of 35%. The capital equipment is to be depreciated using MACRS GDS and a 3 year class life. A)For the cash flow , compute after-tax MARR and evaluate the cash flow using an equivalent worth method. B) Develop the after-tax cash flows for the project of using a 4 year class life and MACRS ADS. Draw the after-tax cash flow diagram.