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 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 | |
| Source of Variation | Sum of Squares | Degrees of Freedom | Mean Square | F | p-value |
| Factor A | |||||
| Factor B | |||||
| Interaction | |||||
| Error | |||||
| Total |
In: Statistics and Probability
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.)
|
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In: Accounting
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.)
|
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In: Accounting
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 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, 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.

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 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
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.

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) = 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