Pls provide graph and diagram if necesarry PROBLEM #3:A firm is charged by Php 150.00 per ton for hauling its raw materials by a truckingcompany. Forty tons per day are hauled for 300 days a year. It is a desired to install a railwaysystem which would bring down the cost of hauling to Php 6.60 per ton. Maintenance cost is Php12,000.00 per month. Tax is 1%. Average rate of earning is 20%.A.) If the company has the cash necessary for the installation, would you recommendchange?B.) If the company has to float Php 5,000.00 worth of non-callable bonds at 15% that willmature in 10 years to have the capital for the project, would you recommend the change?

a. Case 1: PhP 150/ton, 40 tons/day, 300days/year Total cost = PhP(150*40*300) a year = P1,800,000 a…

PROBLEM #3: A firm is charged by Php 150.00 per ton for hauling its raw materials by a trucking company. Forty tons per day are hauled for 300 days a year. It is a desired to install a railway ystem which would bring down the cost of hauling to Php 6.60 per ton. Maintenance cost is Php 2,000.00 per month. Tax is 1%. Average rate of earning is 20%. A.) If the company has the cash necessary for the installation, would you recommend change? B.) If the company has to float Php 5,000.00 worth of non-callable bonds at 15% that will mature in 10 years to have the capital for the project, would you recommend the change?

PROBLEM #3: A firm is charged by Php 150.00 per ton for hauling its raw materials by a trucking company. Forty tons per day are hauled for 300 days a year. It is a desired to install a railway ystem which would bring down the cost of hauling to Php 6.60 per ton. Maintenance cost is Php 2,000.00 per month. Tax is 1%. Average rate of earning is 20%. A.) If the company has the cash necessary for the installation, would you recommend change? B.) If the company has to float Php 5,000.00 worth of non-callable bonds at 15% that will mature in 10 years to have the capital for the project, would you recommend the change?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 16E

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