If disposal problems mean that the marginal social cost of producing plastic is greater than the marginal private costs, than

the price of plastics are too high.

the price of plastics are too low

the output of plastics are too low

too few workers are producing plastics

which one is true

KellyKelly

Fabrics manufactures a specialty monogrammed blanket. The following are the cost standards for this​ blanket:

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​(Click the icon to view the​ standards.)Actual results from last​ month's production of

2 comma 1002,100

blankets are as​ follows:

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​(Click the icon to view the actual​ results.)Read the requirements

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.

Requirement 1.  What is the standard direct material cost for one​ blanket? ​(Round your answer to the nearest​ cent.)

Requirement 2. What is the actual cost per yard of fabric​ purchased? ​(Round your answer to the nearest​ cent.)

Requirement 3. Calculate the direct material price and quantity variances. ​(Enter the variances as positive numbers. Enter currency amounts in the formula to the nearest cent and then round the final variance amounts to the nearest whole dollar. Label the variance as favorable​ (F) or unfavorable​ (U). Abbreviations​ used: DM​= Direct​ materials)

First determine the formula for the price​ variance, then compute the price variance for direct materials.

Determine the formula for the quantity​ variance, then compute the quantity variance for direct materials.

Requirement 4. What is the standard direct labor cost for one​ blanket? ​(Round your answer to the nearest​ cent.)

Requirement 5. What is the actual direct labor cost per​ hour? ​(Round your answer to the nearest​ cent.)

Requirement 6. Calculate the direct labor​ (DL) rate and efficiency variances. ​(Enter the variances as positive numbers. Enter the currency amounts in the formulas to the nearest​ cent, then round the final variance amounts to the nearest whole dollar. Label the variance as favorable​ (F) or unfavorable​ (U). Abbreviations​ used: DL​ = Direct​ labor)

​First, determine the formula for the rate​ variance, then compute the rate variance for direct labor.

​First, determine the formula for the efficiency​ variance, then compute the efficiency variance for direct labor.

Requirement 7. Analyze each variance and speculate as to what may have caused that variance.

The

▼

favorable

unfavorable

DM price variance and

▼

favorable

unfavorable

DM quantity variance may have been caused by

▼

purchasing inferior raw materials

purchasing superior quality raw materials

. The

▼

cheaper materials that are of a lesser quality

more expensive materials that are of a higher quality

cause

▼

less

more

waste.The

▼

favorable

unfavorable

DL rate variance and

▼

favorable

unfavorable

DL efficiency variance may have been caused by

▼

utilizing a more-skilled workforce

utilizing a less-skilled workforce

. The

▼

higher

less

skilled workers command a

▼

higher

lower

​wage, however,

▼

do not work as quickly as a more experienced workforce

work more efficiently than a less experienced workforce

.

Requirement 8. Look at all four variances together​ (the big​ picture). How might they all be​ related? What variance is very likely to have caused the other​ variances?

One possible cause of all four variances is

▼

the initial purchase of inferior raw materials

the initial purchase of superior raw materials

. This would create

▼

a favorable DM price variance while creating more waste

a favorable DL price variance

an unfavorable DL price variance

an unfavorable DM price variance while reducing waste

leading to

▼

a favorable quantity variance

an unfavorable quantity variance

. Because

▼

a higher skilled

a lower skilled

workforce was​ used, the DL rate variance was

▼

favorable

unfavorable

​, ​however, given a

▼

higher quality material and a more-skilled workforce, less

lower quality material and a less-skilled workforce, more

labor hours were​ required, creating

▼

a favorable

an unfavorable

DL efficiency variance.

Actual cost of 11,550 yards of direct material (fabric) purchased. . . . .

$107,415

Actual yards of direct material (fabric) used. . . . . . . . . . . . . . . . . . . . . .

10,850

Actual wages for 3,270 hours worked. . . . . . . . . . . . . . . . . . . . . . . . . .

$53,628

3. A monopolist producing with a constant marginal cost of $8 has the following demand for its product. Price $20 $18 $16 $14 $12 $10 $8 Quantity 1 2 3 4 5 6 7 Find the optimal output, price and calculate the resulting monopoly profit.

3. A monopolist producing with a constant marginal cost of $8 has the following demand for its product. Price $20 $18 $16 $14 $12 $10 $8 Quantity 1 2 3 4 5 6 7 Find the optimal output, price and calculate the resulting monopoly profit.

A random sample of 20 recent weddings in a country yielded a mean wedding cost of

$26,327.16

Assume that recent wedding costs in this country are normally distributed with a standard deviation of

$8,100

Complete parts​ (a) through​ (c) below.

a. Determine a​ 95% confidence interval for the mean​ cost,

muμ​,

of all recent weddings in this country.

The​ 95% confidence interval is from ?????

​(Round to the nearest cent as​ needed.)

 Wells Printing is considering the purchase of a new printing press. The total installed cost of the press is $ 2.15 million. This outlay would be partially offset by the sale of an existing press. The old press has zero book​ value, cost $ 1.01 million 10 years​ ago, and can be sold currently for $ 1.29 million before taxes. As a result of acquisition of the new​ press, sales in each of the next 5 years are expected to be $ 1.65 million higher than with the existing​ press, but product costs​ (excluding depreciation) will represent 54 % of sales. The new press will not affect the​ firm's net working capital requirements. The new press will be depreciated under MACRS- using a​ 5-year recovery period. The firm is subject to a 40 % tax rate. Wells​ Printing's cost of capital is 11.4 % ​(Note: Assume that the old and the new presses will each have a terminal value of $ 0at the end of year​ 6.)

Rounded Depreciation Percentages by Recovery Year Using MACRS for
First Four Property Classes              
   Percentage by recovery year*          
Recovery year    3 years    5 years    7 years    10 years
1    33%   20%   14%   10%
2    45%   32%   25%   18%
3    15%   19%   18%   14%
4    7%   12%   12%   12%
5        12%   9%   9%
6        5%   9%   8%
7            9%   7%
8            4%   6%
9                6%
10                6%
11                4%
Totals   100%   100%   100%   100%
               

a. Determine the initial investment required by the new press.

a. Determine the initial investment required by the new press.

Calculate the initial investment will​ be:  ​(Round to the nearest​ dollar.)

b. Determine the operating cash flows attributable to the new press.​ (Note: Be sure to consider the depreciation in year​ 6.)

c. Determine the payback period.

d. Determine the net present value​ (NPV) and the internal rate of return​ (IRR) related to the proposed new press.

e. Make a recommendation to accept or reject the new​ press, and justify your answer.

SHOW ALL WORK!!! Including formulas

Sunset Sarsaparilla is building a new bottling plant. This plant will cost $140M to construct, and will produce EBIT of $19M per year for the next 12 years. Sunset has a tax rate of 40%. Another firm in the same industry, Vim Pop, has an equity beta of 1.2 and a debt to equity ratio of 0.9. Sunset’s debt to equity ratio is 1.5, the risk free rate is 4%, and the excess return on the market is 8%. Assume both firms can borrow at 5.5%.

1A. Find Sunset’s equity beta using Vim as a comparable firm.

1B. Estimate Sunset Sarsaparilla’s cost of levered equity

1C. Using this estimated cost of equity, find the NPV of opening this bottling plant using the WACC method.

Gateway Communications is considering a project with an initial fixed assets cost of $1.76 million that will be depreciated straight-line to a zero book value over the 10-year life of the project. At the end of the project the equipment will be sold for an estimated $234,000. The project will not change sales but will reduce operating costs by $384,500 per year. The tax rate is 34 percent and the required return is 10.9 percent. The project will require $49,000 in net working capital, which will be recouped when the project ends. What is the project's NPV?

• $117,989

• $160,744

• $155,559

• $112,859

• $149,576