Questions
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

An amusement park studied methods for decreasing the waiting time (minutes) for rides by loading and...

An amusement park studied methods for decreasing the waiting time (minutes) for rides by loading and unloading riders more efficiently. Two alternative loading/unloading methods have been proposed. To account for potential differences due to the type of ride and the possible interaction between the method of loading and unloading and the type of ride, a factorial experiment was designed. Use the following data to test for any significant effect due to the loading and unloading method, the type of ride, and interaction. Use  = .05. Factor A is method of loading and unloading; Factor B is the type of ride.

Type of Ride
Roller Coaster Screaming Demon Long Flume
Method 1 45 51 53
47 43 49
Method 2 47 55 48
49 51 44
  1. Set up the ANOVA table (to 2 decimal, if necessary). Round p-value to four decimal places.
    Source of Variation Sum of Squares Degrees of Freedom Mean Square F p-value
    Factor A
    Factor B
    Interaction
    Error
    Total

  2. The p-value for Factor A is Selectless than .01between .01 and .025between .025 and .05between .05 and .10greater than .10Item 21

    What is your conclusion with respect to Factor A?
    SelectFactor A is significantFactor A is not significantItem 22
  3. The p-value for Factor B is Selectless than .01between .01 and .025between .025 and .05between .05 and .10greater than .10Item 23

    What is your conclusion with respect to Factor B?
    SelectFactor B is significantFactor B is not significantItem 24
  4. The p-value for the interaction of factors A and B is Selectless than .01between .01 and .025between .025 and .05between .05 and .10greater than .10Item 25

    What is your conclusion with respect to the interaction of Factors A and B?
    SelectThe interaction of factors A and B is significantThe interaction of factors A and B is not significantItem 26
  5. What is your recommendation to the amusement park?

In: Statistics and Probability

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near...

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash 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 $ 1,100 $ 0.05
Maintenance $ 0.20
Wages and salaries $ 4,300 $ 0.20
Depreciation $ 8,100
Rent $ 2,000
Administrative expenses $ 1,600 $ 0.04

For example, electricity costs are $1,100 per month plus $0.05 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 actual operating results for August appear below.

  

Lavage Rapide
Income Statement
For the Month Ended August 31
Actual cars washed 8,100
Revenue $ 52,500
Expenses:
Cleaning supplies 6,100
Electricity 1,470
Maintenance 1,840
Wages and salaries 6,260
Depreciation 8,100
Rent 2,200
Administrative expenses 1,820
Total expense 27,790
Net operating income $ 24,710

Required:

Complete the flexible budget performance report that shows the company’s activity variances and revenue and spending 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.)

Lavage Rapide
Flexible Budget Performance Report
For the Month Ended August 31
Revenue and Spending Variances Activity Variances
Revenue F $630 F
Expenses:
Cleaning supplies U 70 U
Electricity F 5 U
Maintenance U 20 U
Wages and salaries U 20 U
Depreciation None 0 None
Rent U 0 None
Administrative expenses F 4 U
Total expense U 119 U
Net operating income F $511 F

In: Accounting

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 $ 0.50
Electricity $ 1,300 $ 0.07
Maintenance $ 0.15
Wages and salaries $ 4,000 $ 0.20
Depreciation $ 8,100
Rent $ 1,900
Administrative expenses $ 1,400 $ 0.02

For example, electricity costs are $1,300 per month plus $0.07 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.40 per car washed.

The actual operating results for August appear below.

Lavage Rapide
Income Statement
For the Month Ended August 31
Actual cars washed 8,600
Revenue $ 56,500
Expenses:
Cleaning supplies 4,750
Electricity 1,865
Maintenance 1,515
Wages and salaries 6,060
Depreciation 8,100
Rent 2,100
Administrative expenses 1,470
Total expense 25,860
Net operating income $ 30,640

Required:

Prepare a flexible budget performance report that shows the company’s revenue and spending variances and 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.)

Lavage Rapide
Flexible Budget Performance Report
For the Month Ended August 31
Actual Results Revenue and Spending Variances Flexible Budget Activity Variances Planning Budget
Cars washed 8,600 8,600
Revenue $56,500
Expenses:
Cleaning supplies 4,750
Electricity 1,865
Maintenance 1,515
Wages and salaries 6,060
Depreciation 8,100
Rent 2,100
Administrative expenses 1,470
Total expense 25,860
Net operating income $30,640

In: Accounting

Each of the following situations describes a firm’s production and costs during a given year. a....

Each of the following situations describes a firm’s production and costs during a given year. a. Firm A is producing 20 000 units of output, incurring a total cost of $1,000,000 and total variable cost of $600,000. What is Firm A’s average fixed cost? b. Firm B is producing 20,000 units of output, incurring a total cost of $100,000 and total fixed cost of $20,000. What is Firm B’s average variable cost? c. Firm C is producing 750 units of output. Average variable cost is $10 per unit and average fixed cost is $5 per unit. What is Firm C’s total cost? d. Firm D is producing 400 units of output. Average total cost is $12 and average fixed cost is $4. What is Firm D’s total variable cost? e. Firm E is producing 1,250,000 units of output, incurring a total cost of $20,000,000 and total variable cost of $18,000,000. What is Firm E’s average fixed cost?

In: Economics

he March 31, 2020, adjusted trial balance for Amusement Park Repair is shown below with accounts...

he March 31, 2020, adjusted trial balance for Amusement Park Repair is shown below with accounts in alphabetical order.

Debit Credit
Accounts payable $ 31,000
Accounts receivable $ 48,000
Accumulated depreciation, equipment 9,000
Accumulated depreciation, truck 21,000
Cash 14,400
Depreciation expense 3,800
Equipment 19,000
Franchise 21,000
Gas and oil expense 7,500
Interest expense 450
Interest payable 750
Land not currently used in business operations 148,000
Long-term notes payable1 35,000
Notes payable, due February 1, 2021 7,000
Notes receivable2 6,000
Intangible asset 7,000
Prepaid rent 14,000
Rent expense 51,000
Repair revenue 266,000
Repair supplies 13,100
Repair supplies expense 29,000
Truck 26,000
Unearned repair revenue 12,600
Vic Sopik, capital 74,900
Vic Sopik, withdrawals 49,000
Totals $ 457,250 $ 457,250


1$5,000 of the long-term note payable is due during the year ended March 31, 2021.
2$2,000 of the notes receivable will be collected by March 31, 2021.

Calculate each of the following:

b)property plant and equipment

c)intangible assets

d)non-current liabilities

e) non current investment

f) current liabilities

g total assets

total liabilities

total liabilities and equity

In: Accounting

For the pizza seller whose marginal, average variable and average total cost curves are shown in the graph below

For the pizza seller whose marginal, average variable and average total cost curves are shown in the graph below, what is the profit-maximizing level of output and how much profit will this producer earn if the price of pizza is $1.00 per slice?


 Instructions: In the graph below, label all three curves by clicking on the dropdown to select the appropriate label. Then, indicate the profit-maximizing level of output. Enter your response as a whole number.

image.png

At the profit-maximizing level of output, the producer's profit is: $________ per day.

In: Economics

5) Scranton Shipyards has $11.0 million in total invested operating capital, and its Cost of capital...

5) Scranton Shipyards has $11.0 million in total invested operating capital, and its Cost of capital is 10%. Scranton has the following income statement: Sales $10.0 million (EBIT) $ 4.0 million Interest expense 2.0 million (EBT) $ 2.0 million Taxes (25%) 0.5 million Net income $ 1.5 million What is Scranton’s EVA? Explain what does it mean.

In: Finance

Using the ABC system, how much total manufacturing overhead cost would be assigned to Product TOSP?


Kulka Corporation manufactures two products Product F82D and Product TO5P. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products F82D and TO5P.

image.png

 

Using the ABC system, how much total manufacturing overhead cost would be assigned to Product TOSP?

Multiple Choice 

  • $147,000

  • $304,500 

  • $156,000

  • $303,000

In: Accounting

A leather good company has the following total cost function of making leather bags: C(q) =...

A leather good company has the following total cost function of making leather bags: C(q) = 3000+20q2. What is function of the marginal cost? Group of answer choices MC(q)=20q2 MC(q)=3000 MC(q)=3000+20q2 MC(q)=20q MC(q)=40q

In: Economics