A city is considering buying a piece of land for $500.000 and construction an office complex on it. Their planning horizon is 20 years. Two mutually exclusive building designs have been drawn up by an architectural firm. Use the modified benefit cost ratio method and a MARR of 10% per year to determine which alternative should be recommended to the city council.

Perform the incremental B/C Analysis. Write the incremental B/C ratio for these alternatives.

A city is considering buying a piece of land for $500.000 and construction an office complex on it. Their planning horizon is 20 years. Two mutually exclusive building designs have been drawn up by an architectural firm. Use the modified benefit cost ratio method and a MARR of 10% per year to determine which alternative should be recommended to the city council.

Perform the incremental B/C Analysis. Write the incremental B/C ratio for these alternatives.

A dam is to be constructed to provide a storage reservoir for a flood control project. The table below has descriptions of costs and benefits for five reservoir capacity options:

Assume the project life = 50 years and i = 6%. Determine the reservoir capacity which:

1. Maximizes value of net benefits
2. Maximizes the benefit/cost (B/C) ratio
3. Maximizes the incremental benefit/cost ratio (DB/DC)

A city is considering buying a piece of land for $500.000 and construction an office complex on it. Their planning horizon is 20 years. Two mutually exclusive building designs have been drawn up by an architectural firm. Use the modified benefit cost ratio method and a MARR of 10% per year to determine which alternative should be recommended to the city council.

Perform the incremental B/C Analysis. Write the incremental B/C ratio for these alternatives.

9-41 A do-nothing and two mutually exclusive alternatives are being considered for reducing traffic congestion. User benefits come from reduced congestion once the project is complete, while user disbenefits are due to increased congestion during construction. The interest rate is 8%, and the life of each alternative is 15 years. Which alternative should be chosen?

Alternative A B

User benefits ($M/yr) 2.1 2.6

User disbenefits ($M) 1.2 2.1

First cost ($M) 6.9 9.9

(a) Use the benefit-cost ratio.

(b) Use the modified benefit-cost ratio.

(c) Use the public/government version of the B/C ratio.

Operations and maintenance ($M/yr) 0.75 0.825

Lovell Computer Parts Inc. is in the process of setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of 51,000 units. Per Unit Total Direct materials $51 Direct labor $27 Variable manufacturing overhead $24 Fixed manufacturing overhead $714,000 Variable selling and administrative expenses $19 Fixed selling and administrative expenses $408,000 Lovell Computer Parts management requests that the total cost per unit be used in cost-plus pricing its products. On this particular product, management also directs that the target price be set to provide a 23% return on investment (ROI) on invested assets of $1,270,600. Incorrect answer. Your answer is incorrect. Try again. Compute the markup percentage and target selling price that will allow Lovell Computer Parts to earn its desired ROI of 23% on this new component. (Round answers to 2 decimal places, e.g. 10.50.) Markup percentage Entry field with incorrect answer 729 % Target selling price $Entry field with incorrect answer 196.83 LINK TO TEXT Incorrect answer. Your answer is incorrect. Try again. Assuming that the volume is 39,300 units, compute the markup percentage and target selling price that will allow Lovell Computer Parts to earn its desired ROI of 23% on this new component. (Round answers to 2 decimal places, e.g. 10.50.) Markup percentage Entry field with incorrect answer % Target selling price

California Cabinets manufactures outdoor tables the company sells to local dealers throughout the Southwest. Because of an increase in demand for its products, California Cabinets is considering hiring subcontractors to complete its current backlog of orders. The following information is available for each subcontractor: Subcontractor 1 Subcontractor 2 Subcontractor 3 Hours required to complete wood tables 50 42 30 Hours required to complete steel tables 60 48 35 Hours available 40 30 35 Cost per hour $36 $42 $55 For example, Subcontractor 1 estimates it will take 50 hours to complete all wood tables and 60 hours to complete all steel tables. However, Subcontractor 1 only has 40 hours available. Therefore, Subcontractor 1 can only complete 40/50 = .80 or 80% of the wood tables if the company worked only on the wood tables or 40/60 = .67 or 67% if it worked only on the steel tables.

Formulate a linear programming model you can use to determine the percentage of wood tables and the percentage of steel tables that should be assigned to each of the three subcontractors to minimize the total cost of completing both projects.

Solve the model from Part 1. What percentage of the wood tables and what percentage of the steel tables should be assigned to each subcontractor?

Based on your model, what is the total cost of completing both projects?

Suppose Subcontractor 2 reduced its costs to $38 per hour. What effect would this change have on the optimal solution? Explain.

Q1

[The following information applies to the questions displayed below.]

At year-end December 31, Chan Company estimates its bad debts as 0.40% of its annual credit sales of $759,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $380 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off.

Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5.

Q2

Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows.

Year 1

1. Sold $1,351,400 of merchandise (that had cost $981,600) on credit, terms n/30.
2. Wrote off $20,400 of uncollectible accounts receivable.
3. Received $667,900 cash in payment of accounts receivable.
4. In adjusting the accounts on December 31, the company estimated that 1.10% of accounts receivable would be uncollectible.

Year 2

5. Sold $1,587,000 of merchandise (that had cost $1,251,700) on credit, terms n/30.
6. Wrote off $33,300 of uncollectible accounts receivable.
7. Received $1,374,300 cash in payment of accounts receivable.
8. In adjusting the accounts on December 31, the company estimated that 1.10% of accounts receivable would be uncollectible.

Required:
Prepare journal entries to record Liang’s Year 1 and Year 2 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system, and it applies the allowance method for its accounts receivable.) (Round your intermediate calculations to the nearest dollar.)

Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5.

Please and thank you! my last two problems in accounting!

QUESTION 8

For a monopolist:

QUESTION 9

An example of price discrimination is the price charged for:

QUESTION 10

There is only one gas station within hundreds of miles. The owner finds that if she charges $3 a gallon, she sells 199 gallons a day, and if she charges $2.99 a gallon, she sells 200 gallons a day. The marginal revenue of the 200th gallon of gas is:

QUESTION 11

At the long-run equilibrium level of output, the monopolist's marginal cost will:

QUESTION 12

A monopolist will earn economic profits as long as his price exceeds:

QUESTION 13

A monopolist will maximize its profit by:

QUESTION 14

Both a perfectly competitive firm and a monopolist:

QUESTION 15

Without government regulation, the market outcome of monopoly:

On January 1, 20Y6, the controller of Omicron Inc. is planning capital expenditures for the years 20Y6–20Y9. The following interviews helped the controller collect the necessary information for the capital expenditures budget:

Director of Facilities: A construction contract was signed in late 20Y5 for the construction of a new factory building at a contract cost of $10,000,000. The construction is scheduled to begin in 20Y6 and be completed in 20Y9.

Vice President of Manufacturing: Once the new factory building is finished, we plan to purchase $1.5 million in equipment in late 20Y7. I expect that an additional $200,000 will be needed early in the following year (20Y8) to test and install the equipment before we can begin production. If sales continue to grow, I expect we'll need to invest another $1,000,000 in equipment in 20Y9.

Chief Operating Officer: We have really been growing lately. I wouldn't be surprised if we need to expand the size of our new factory building in 20Y9 by at least 35%. Fortunately, we expect inflation to have minimal impact on construction costs over the next four years. Additionally, I would expect the cost of the expansion to be proportional to the size of the expansion.

Director of Information Systems: We need to upgrade our information systems to wireless network technology. It doesn't make sense to do this until after the new factory building is completed and producing product. During 20Y8, once the factory is up and running, we should equip the whole facility with wireless technology. I think it would cost us $800,000 today to install the technology. However, prices have been dropping by 25% per year, so it should be less expensive at a later date.

Chief Financial Officer: I am excited about our long-term prospects. My only short-term concern is managing our cash flow while we expend the $4,000,000 of construction costs in 20Y6 and $6,000,000 in 20Y7 on the portion of the new factory building scheduled to be completed in 20Y9.

Use this interview information to prepare a capital expenditures budget for Omicron Inc. for the years 20Y6–20Y9.

Horizon Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows:

Depreciation, insurance, and property taxes represent $26,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. 66% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month.

Prepare a schedule of cash payments for selling and administrative expenses for March, April, and May.