A proposed cost-saving device has an installed cost of $675,000. The device will be used in a five-year project but is classified as three-year MACRS property for tax purposes. The required initial net working capital investment is $85,000, the marginal tax rate is 21 percent, and the project discount rate is 11 percent. The device has an estimated Year 5 salvage value of $68,000. What level of pretax cost savings do we require for this project to be profitable? MACRS schedule. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

A proposed cost-saving device has an installed cost of $565,000. The device will be used in a five-year project but is classified as three-year MACRS property for tax purposes. The required initial net working capital investment is $40,000, the tax rate is 23 percent, and the project discount rate is 12 percent. The device has an estimated Year 5 salvage value of $55,000. What level of pretax cost savings do we require for this project to be profitable? MACRS schedule (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

The difference between the actual variable overhead cost and the standard variable overhead cost for the actual volume of the overhead activity base is known as the

Select one:

A. variable overhead efficiency variance.

B. fixed overhead budget variance.

C. variable overhead spending variance.

D. fixed overhead volume variance.

What is the Pretax cost savings?

The following are the total cost for differing amounts of units of hammers. Units Total Cost 26,200 $975,000 44,100 $1,456,400 18,700 $770,600 27,600 $1,011,100 34,400 $1,197,700 What is the variable cost per unit? Using your answer in the above question, estimate the total cost for 25,000 hammers.

A proposed cost-saving device has an installed cost of $660,000. The device will be used in a five-year project but is classified as three-year MACRS (MACRS Table) property for tax purposes. The required initial net working capital investment is $51,500, the marginal tax rate is 34 percent, and the project discount rate is 13 percent. The device has an estimated Year 5 salvage value of $76,500. What level of pretax cost savings do we require for this project to be profitable? Pretax savings $

A proposed cost-saving device has an installed cost of $670,000. The device will be used in a five-year project but is classified as three-year MACRS property for tax purposes. The required initial net working capital investment is $49,000, the marginal tax rate is 30 percent, and the project discount rate is 8 percent. The device has an estimated Year 5 salvage value of $74,000. What level of pretax cost savings do we require for this project to be profitable? MACRS schedule (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

In a Cost-Plus Incentive Fee contract, the target cost is $200,000 and the target fee is $9000. The seller and buyer agree to share the saving/loss with 70% to the buyer and 30% to the seller.

Target cost = $200,000

Target fee = $9000

Calculate the final fee and final price if the project is over and

a) the buyer has agreed that the costs are in fact $240,000.

b) the buyer has agreed that the costs are in fact $170,000.

Explain why cost management and cost allocation is important information for a healthcare manager?