Questions
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility...

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:

Fixed Cost
per Month
Cost per
Car Washed
Cleaning supplies $ 0.70
Electricity $ 1,200 $ 0.08
Maintenance $ 0.25
Wages and salaries $ 4,200 $ 0.30
Depreciation $ 8,400
Rent $ 2,100
Administrative expenses $ 1,400 $ 0.04

For example, electricity costs are $1,200 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.30 per car washed. The company actually washed 8,100 cars in August.

Required:

Calculate the company's activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

In: Accounting

A Company uses a 10-hp motor for 16 hours per day, 5 days per week, 50...

A Company uses a 10-hp motor for 16 hours per day, 5 days per week, 50 weeks per year in its flexible work cell. This motor is 85% efficient, and it is near the end of its useful life. The company is considering buying a new high efficiency motor (91% efficient) to replace the old one instead of buying a standard efficiency motor (86.4% efficient). The high efficiency motor cost $70 more than the standard model, and should have a 14 year life. The company pays $7 per kW per month and $0.06 per kWh. The company has set a discount rate of 10% for their use in comparing projects.
Determine;
a) SPP ( simple Payback Period),
b) IRR (Internal Rate of Return), and
c) BCR (benefit/cost ratio) for this project
Assume 60% load factor the motor.

In: Finance

Your firm manufactures flat-screen video monitors that are sold to a major laptop producer who pays...

Your firm manufactures flat-screen video monitors that are sold to a major laptop producer who pays $50 per screen. The major laptop producer has said they will take as many screens as you want to sell at that price. You have two facilities, one in Malaysia and one in Indonesia. The variable cost curve in the Malaysian plant is described as follows: VCM = q¬ + .0005*q2 , where q is quantity produced in that plant per month. The variable cost curve in the Indonesian plant is described by VCI = .5q + .00075q2, where q is the quantity produced in that plant per month. The fixed cost per month of the Malaysian plant (when amortized over many years) is $900,000. The fixed cost per month of the Indonesian plant is higher (since it is more modern) at $1,000,000. The fixed costs of each are sunk.

Questions: 1. Given you can sell as many of these screens as you want for $50 per screen, how many units to you want to produce in Malaysia? How many do you want to produce in Indonesia? What is the average variable cost in Malaysia? What is the average variable cost in Indonesia? Show your work. (8 points)

2. There is another major laptop manufacturer that says they will pay you $60 per screen. Without recalculating your answers to 1, how should you change your production in each plant? Which of the following are true (4 points): a. You should increase output in both, but increase by more in Malaysia than in Indonesia. b. You should increase output in both, but increase by more in Indonesia than in Malaysia. c. You should increase both by exactly the same amount Explain your answer below.

3. The Malaysian government imposes a tax on each screen produced in Malaysia. Without recalculating, how should you change your production in each plant, which of the following are true (4 points): Malaysian Plant (circle one): Increase Decrease Keep the same Indonesian Plant (circle one): Increase Decrease Keep the same Explain your answers below.

4. Instead of the creating a more modern manufacturing plant in Indonesia, you could have built another plant very similar to the one in Malaysia (i.e., one with the same variable cost curve as your current plant in Malaysia), with a fixed monthly cost of $900,000. Should you have just built another plant like the one in Malaysia? Why or why not. Provide any values of certain variables that support you case. (8 points)

In: Economics

Anna Mae thee Stallion is a self-employed platinum selling rapper living a rented condominium (condo). One...

Anna Mae thee Stallion is a self-employed platinum selling rapper living a rented condominium (condo). One of the room is the condo is used as a business office only that has270 of the 1,800 square feet of living space in the condo. Anna Mae thee Stallion performs in recording studios and arenas, but Anna Mae thee Stallion does all of her business administrative duties in her home office. This year, Anna Mae thee Stallion’s condo rent was $51,000. She uses a housekeeping company to clean the entire condo once a week and pays them $5,500. She also pays $2,300 for renter’s insurance on the condo furnishings.

  1. What Anna Mae thee Stallion's home office deduction if her net profit before the deduction was $330,000.
  2. What is Anna Mae thee Stallion's home office deduction if her net profit before the deduction was $4,300.

    s $4,300.

In: Accounting

Johnson Associates is a catering firm in Tucson, Arizona, with revenue of $4 million. The business...

Johnson Associates is a catering firm in Tucson, Arizona, with revenue of $4 million. The business began ten years ago as a one-owner bakery, but has dramatically changed in size and function during the past five years. The four partners foresee the business doubling in sales revenue within two years, and expect the firm to expand into other services including flowers, furnishings, decorations, and music. Johnson Associates employs six full-time and ten part-time employees. The four partners also work full-time, each partner managing a separate business function. The firm currently uses a volume-based costing system installed seven years ago and modified three years later.

Required: (a) With just the above information, comment on Johnson Associates changing and future costing system needs. (b) Is Johnson Associates a probable candidate for an activity-based costing system (ABC)? Why or why not?

In: Accounting

Choosing a Source of Credit: The Costs of Credit Alternatives Jamie Lee Jackson, age 27, full-time...

Choosing a Source of Credit: The Costs of Credit Alternatives

Jamie Lee Jackson, age 27, full-time student and part-time bakery employee, is busy setting up her new home. Her budget is a little tight now as she made the decision to move in to a place of her own, which gives her privacy and independence, but all of the expenses are now her responsibility.

Jamie Lee applied for three store credit cards when she was shopping for her furnishings. The excitement of making selections and the attractiveness of percentages off her purchases made the credit card offers too good to pass up. It was all too easy to select the new furnishings when the cash was not immediately coming from her pocket. “The payments will not be due for at least 45 days from now, by the time all the accounts are opened and the grace periods are factored in. I am sure I will have enough to cover the balances by then,” Jamie Lee convinced herself.

Jamie Lee’s new furnishings have been delivered, and she is quite happy with her choices. The bungalow is comfortable, and Jamie is now getting into a routine balancing the new move with work and school obligations. Unfortunately, the bills have begun to arrive in Jamie Lee’s mailbox; payments are soon due for all the new furniture and appliances.

The corresponding annual interest rates on the credit card purchases were not something Jamie Lee factored in when she applied for the store credit cards. “Wow, 18.5 percent on one, and the other two have interest rates of 19 percent per year. Those interest fees can really add up quickly. The disclosure said that by making the minimum payments, I could be paid off in 14 years! I am not sure my appliances will still be working at that time, nor will the furniture still be in style 14 years from now.” Jamie Lee was starting to feel the consequences of overspending and knew she must develop a plan to pay off the purchases quickly!

Assets: Checking account: $1,800 Savings account: $7,200 Emergency fund savings account: $2,700 IRA balance: $410 Car: $2,800

Liabilities: Student loan balance: $10,800(Jamie is still a full-time student, so no payments are required on the loan until after graduation) Credit card balance: $4,250(total of the three store credit cards)

Income: Gross Monthly salary from the bakery: $2,750(Net Income: $2,175)

Monthly Expenses: Rent: $350 Utilities: $70 Food: $125 Gas/maintenance: $130 Credit card payment: $0

Questions

1. Jamie Lee received an offer to transfer the balance of all her store credit cards to her bank credit card in the mail. It offered zero percent finance charges/interest for the first three months(90 days), and 18.5 percent interest rate thereafter until the balance is paid in full. Upon reading the fine print, there was a $50 transaction fee and interest accrued from the day the balance transfer was made if the balance is paid in full within the first 90 days. How could Jamie Lee use this balance transfer offer to her advantage? How is this offer a major disadvantage to Jamie Lee?

In: Finance

Choosing a Source of Credit: The Costs of Credit Alternatives Jamie Lee Jackson, age 27, full-time...

Choosing a Source of Credit: The Costs of Credit Alternatives

Jamie Lee Jackson, age 27, full-time student and part-time bakery employee, is busy setting up her new home. Her budget is a little tight now as she made the decision to move in to a place of her own, which gives her privacy and independence, but all of the expenses are now her responsibility.

Jamie Lee applied for three store credit cards when she was shopping for her furnishings. The excitement of making selections and the attractiveness of percentages off her purchases made the credit card offers too good to pass up. It was all too easy to select the new furnishings when the cash was not immediately coming from her pocket. “The payments will not be due for at least 45 days from now, by the time all the accounts are opened and the grace periods are factored in. I am sure I will have enough to cover the balances by then,” Jamie Lee convinced herself.

Jamie Lee’s new furnishings have been delivered, and she is quite happy with her choices. The bungalow is comfortable, and Jamie is now getting into a routine balancing the new move with work and school obligations. Unfortunately, the bills have begun to arrive in Jamie Lee’s mailbox; payments are soon due for all the new furniture and appliances.

The corresponding annual interest rates on the credit card purchases were not something Jamie Lee factored in when she applied for the store credit cards. “Wow, 18.5 percent on one, and the other two have interest rates of 19 percent per year. Those interest fees can really add up quickly. The disclosure said that by making the minimum payments, I could be paid off in 14 years! I am not sure my appliances will still be working at that time, nor will the furniture still be in style 14 years from now.” Jamie Lee was starting to feel the consequences of overspending and knew she must develop a plan to pay off the purchases quickly!

Assets: Checking account: $1,800 Savings account: $7,200 Emergency fund savings account: $2,700 IRA balance: $410 Car: $2,800

Liabilities: Student loan balance: $10,800(Jamie is still a full-time student, so no payments are required on the loan until after graduation) Credit card balance: $4,250(total of the three store credit cards)

Income: Gross Monthly salary from the bakery: $2,750(Net Income: $2,175)

Monthly Expenses: Rent: $350 Utilities: $70 Food: $125 Gas/maintenance: $130 Credit card payment: $0

Jamie Lee received an offer to transfer the balance of all her store credit cards to her bank credit card in the mail. It offered zero percent finance charges/interest for the first three months(90 days), and 18.5 percent interest rate thereafter until the balance is paid in full. Upon reading the fine print, there was a $50 transaction fee and interest accrued from the day the balance transfer was made if the balance is paid in full within the first 90 days.

3. What solution would you recommend for Jamie Lee to get her credit cards paid off as soon as possible? What are the advantages of your choices? What are the disadvantages of your choices?

In: Finance

If the moment generating function is Mx(t) = 1/(1-10t) for t near 0 whats the pdf,...

If the moment generating function is Mx(t) = 1/(1-10t) for t near 0

whats the pdf, mean, and variance with steps please want to understand

In: Statistics and Probability

If I have a positively charged surface and bring it near to a plasma, what would...

If I have a positively charged surface and bring it near to a plasma, what would happen? Will both the electrons and protons behave in the same way? (compare their accelerations).

In: Physics

For the following exercises, make tables to show the behavior of the function near the vertical asymptote and reflecting the horizontal asymptote. f(x) = 1/x -0 2

For the following exercises, make tables to show the behavior of the function near the vertical asymptote and reflecting the horizontal asymptote.

f(x) = 1/x -0 2

In: Advanced Math