Please show work

The technique for calculating a bid price can be extended to many other types of problems. Answer the following questions using the same technique as setting a bid price; that is, set the project NPV to zero and solve for the variable in question. Guthrie Enterprises needs someone to supply it with 157,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. It will cost $1,970,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. You estimate that in five years this equipment can be salvaged for $167,000. Your fixed production costs will be $282,000 per year, and your variable production costs should be $11.10 per carton. You also need an initial investment in net working capital of $147,000. The tax rate is 22 percent and you require a return of 11 percent on your investment. Assume that the price per carton is $17.70.

a. Calculate the project NPV. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

b. What is the minimum number of cartons per year that can be supplied and still break even? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

c. What is the highest fixed costs that could be incurred and still break even? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Objectives

To learn to code, compile, and run a program using file input and an output file.

Assignment

Plan and code a program utilizing one file for input and one file for output to solve the following problem:

Write a program to determine the highest number, the lowest number, their total, and the average of each line of numbers in a file. A file contains 7 numbers per line. How many lines a file contains is unknown.

Note

Label all output clearly. Be sure your output file contains user prompts and what was entered by the user in addition to the results of your program processing. Be sure your output file contains data that was input in addition to the results of your program processing. Create the data file below using your text editor or Notepad. Copying and pasting the numbers might create problems with reading from the files. Type in the numbers. Separate numbers by using either the tab key or blank spaces.

Data File Sample

346       130       982       90         656       117       595

415       948       126       4            558       571       87

42         360       412       721       463       47         119

441       190       985       214       509       2            571

77         81         681       651       995       93         74

310       9            995       561       92         14         288

466       664       892       8            766       34         639

151       64         98         813       67         834       369

Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions

Required:
1. Compute cost of goods available for sale and the number of units available for sale.

2. Compute the number of units in ending inventory.

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, units sold consist of 600 units from beginning inventory, 380 from the February 10 purchase, 120 from the March 13 purchase, 130 from the August 21 purchase, and 205 from the September 5 purchase.

4. Compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places.)

5. The company’s manager earns a bonus based on a percent of gross profit. Which method of inventory costing produces the highest bonus for the manager?

V

The technique for calculating a bid price can be extended to many other types of problems. Answer the following questions using the same technique as setting a bid price; that is, set the project NPV to zero and solve for the variable in question. Guthrie Enterprises needs someone to supply it with 141,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. It will cost $1,810,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. You estimate that in five years this equipment can be salvaged for $151,000. Your fixed production costs will be $266,000 per year, and your variable production costs should be $9.50 per carton. You also need an initial investment in net working capital of $131,000. The tax rate is 21 percent and you require a return of 13 percent on your investment. Assume that the price per carton is $16.10.

a. Calculate the project NPV. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

b. What is the minimum number of cartons per year that can be supplied and still break even? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

c. What is the highest fixed costs that could be incurred and still break even? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

The technique for calculating a bid price can be extended to many other types of problems. Answer the following questions using the same technique as setting a bid price; that is, set the project NPV to zero and solve for the variable in question. Guthrie Enterprises needs someone to supply it with 156,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. It will cost $1,960,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. You estimate that in five years this equipment can be salvaged for $166,000. Your fixed production costs will be $281,000 per year, and your variable production costs should be $11.00 per carton. You also need an initial investment in net working capital of $146,000. The tax rate is 21 percent and you require a return of 10 percent on your investment. Assume that the price per carton is $17.60. a. Calculate the project NPV. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the minimum number of cartons per year that can be supplied and still break even? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. What is the highest fixed costs that could be incurred and still break even? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

The technique for calculating a bid price can be extended to many other types of problems. Answer the following questions using the same technique as setting a bid price; that is, set the project NPV to zero and solve for the variable in question. Guthrie Enterprises needs someone to supply it with 159,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. It will cost $1,990,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. You estimate that in five years this equipment can be salvaged for $169,000. Your fixed production costs will be $284,000 per year, and your variable production costs should be $11.30 per carton. You also need an initial investment in net working capital of $149,000. The tax rate is 24 percent and you require a return of 13 percent on your investment. Assume that the price per carton is $17.90.

a. Calculate the project NPV. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

b. What is the minimum number of cartons per year that can be supplied and still break even? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

c. What is the highest fixed costs that could be incurred and still break even? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)