Cost drivers

Company A produces 3 products. Company A uses labor costs as a cost driver for support costs. Direct labor is estimated at $20 per hour. Products A & B require 20 hours of direct labor. Support cost is 2x the direct labor cost. Company A recently installed a computer integrated manufacturing system. Due to this change, Com ...continues

Ratio's (13; all data provided)

Calculate the ratio's for Company A. Company A Balance Sheet: Assets: Cash- 15000 acct receivable- 22000 inventory- 30000 current assets- 67000 net fixed assets- 73000 total assets- 140000 Liabilities: acct payable- 21000 notes payable- 20000 accrued expenses- 5000 current liabilities- 46000 long term debt- ...continues

BE point & contribution margin

Sales ( 30,000 caps @ $50)- 1,500,000 Less vairable expenses- 900000 contribution margin- 600000 less fixed expenses- 280000 net income- 320000 Find the contribution margin and the break even point in both units and dollars.

pvb, pvc, npv

Company A is considering the purchase of a new machine that would lower cash outflow. The cost of the machine is 30,000. The annual reduction in cash flows is: Year Amount 1 5000 2 8000 3 12000 4 14000 If the cost of capital is 10%, calculate the following: ...continues

Coupon rate, current yield, yield to maturity

Company A is selling bonds paying $105 annually that will mature 10 years from today. The bond is currently selling for $970, the face value of the bond is $1000. Calculate: -coupon rate -current yield -yield to maturity

Assuming the bank savings rate is 12% compounded quarterly, how much must Mr. Jones put in his account today?

Mr. Jones wants to buy his son a car in 3 years. The cost of the car is 20,000. Assuming the bank savings rate is 12% compounded quarterly, how much must Mr. Jones put in his account today?

Calculating the value of an annuity

You decide to invest 1500 quarterly for 5 years in an ordinary annuity at 16% compounded quarterly. what will the value of your annuity be after 5 years?

How much must you deposit at 3% compounded annually?

You would like to receive payments of $40,000 at the end of each year for 10 years. How much must you deposit at 3% compounded annually?

How much will Bob have in his account after 15 years?

Bob deposited 20,000 in a bank. The bank pays 6% interest compounded annually. How much will Bob have in his account after 15 years?

Profit maximization

The owner of the car wash believes that the relationship between the number of cars washed and labor input is Q = -0.8 + 4.5L - 0.3L2, where Q is the number of cars washed per hour, and L is the number of people employed per hour. The firm receives $5 for each car washed, and the hourly wage rate for each person employed is $4.5 ...continues