ACCT505 Part B Capital Budgeting problem Clark Paints, Inc. Data: Cost of new equipment $200,000 Expected life of equipment in years 5 Disposal value in 5 years $40,000 Life production - number of cans 5,500,000 Annual production or purchase needs 1,100,000 Initial training costs 0 Number of workers needed 3 Annual hours to be worked per employee 2,000 Earnings per hour for employees $12.00 Annual health benefits per employee $2,500 Other annual benefits per employee-% of wages 18% Cost of raw materials per can $0.25 Other variable production costs per can $0.05 Costs to purchase cans - per can $0.45 Required rate of return 12% Tax rate 35% Make Purchase Cost to produce Annual cost of direct material: Need of 1,100,000 cans per year $275,000 Annual cost of direct labor for new employees: Wages 72,000 Health benefits 7,500…
ACCT505 Part B Capital Budgeting problem Clark Paints Data: Cost of new equipment $200,000 Expected life of equipment in years 5 yrs Disposal value in 5 years $40,000 Life production - number of cans 5,500,000 Annual production or purchase needs $1,100,000 Initial training costs Number of workers needed 3 Annual hours to be worked per employee 2000 hrs Earnings per hour for employees $12 Annual health benefits per employee $2,500…
ACCT505 Part B Capital Budgeting problem Data: Cost of new equipment Expected life of equipment in years Disposal value in 5 years Life production - number of cans Annual production or purchase needs Initial training costs Number of workers needed Annual hours to be worked per employee Earnings per hour for employees Annual health benefits per employee Other annual benefits per employee-% of wages Cost of raw materials per can Other variable production costs per can Costs to purchase cans - per can Required rate of return Tax rate…
Individual Analysis (pre-class)–Must be typedCase Review (3): 500,000 clients, 3 types. 25 branches. Broad range of services. Very competitive environment. Competition increases from technological advances/internet enabled foreign competitors. Scott employed for 20 years. Responsibilities are to develop departmental plans, set goals and deadlines, implement procedures to improve productivity and customer service and define the responsibilities of supervisory managers. Reports to the vice-president of admin. services, Geoff Marti. Main revenue is interest on capital it loans to clients. Nipissing pays interest on deposits but charges interest on all loans. Increases profits by increasing the spread, acquiring more and larger clients, selling more services to clients or reducing overhead. 2007 total clients decreased for first time. Mailing marketing complicated due to type of client. Needs better efficiency.Options (4): 1: Cost is $65000, plus $15750 a year. Same manual labour. Would make total process 26.05 seconds long. Is discontinued in 2012 and will deplete useful life in 2014. Option solution only temporary. In next few years, have to reassess same issue when machine used up. Gives time to investigate if cliental will increase or decrease. 2: Cost is $435000, plus $25000 a year. No added manual labour. Mailsorter value: $10000 to $15000. 30 days of downtime, all packaging processing must be done manually. Not large issue due to the long-term savings of not having added manual labour once installed. Will suit needs when cliental reaches 1 million clients. Can complete the process in approx. 52.1 seconds. Faster then old machine system including manual stuffing needed. Able to make sure client confidentiality is kept. Make sure the packages are nice, no tears or wrinkles. Will not have to reinvest for another 20 years. If number of clients increases there will be no additional costs. Successful due to…
| * The problem is the new manufacturing system installed in the plant requires trained workers to successfully operate the machine and at the time the new section is scheduled to open only 4 out of 16 workers will have experience. * Having untrained workers will increase the rejection rate for output of production.…
Looking over the Constructit Company they have 1000 employees working for them. The people at Constructit are willing to pay a maximum premium of $4,000 per person. The company has 550 men working for them and 450 women working for them. Out of all the employees 32% of them are involved in a great deal of physical activity during their work day,25% have moderate…
The sales department consists of 50 employees that requires mobility with access to the company's resources while in the field with customers and presenting at sales meeting and conferences. The manufacturing department will have 45 employees and will need hardware that support word processing and spreadsheet programs and internet capable. The inventory control department will have 30 employees who would need mobility hardware as well with power to access database systems. The research and development department will consist of 20 employees that's need hardware with graphics design and CAD programs. The MIS will consist of 5 employees who will need additional processors and memory requirements to support administration tasks.…
Leibler (“True and fair view- an imaginary view”) argues “in an ideal world, and with just a little imagination, accounting standards would always produce a true and fair result. But this is not necessarily so in the real world” (p 61).…
The stakeholder’s of any company or project may be directly or indirectly affect or be affected by the organization’s actions, objectives and policies. In this case, the needs of the stakeholders will vary depending on the anticipated outcome of each individual who will be receiving the upgrade. This means that a total of 115 employees will be involved, thus making them the primary stakeholders. Another stakeholder in this project will be the company or companies involved in the upgrade and the ones maintaining the project from start to finish. Lastly, another stakeholder is the company that our company will be purchasing all of the upgrade equipment from for the 115 employees. The overall objective of the primary stakeholders is to save the company money in the long term.…
A user would like to secure files stored on a floppy disk. Which file system should they select to format the disk?…
Group fitness classes are one hour long, which includes ten minutes for stretching and ten minutes for cooling down. Fitness rooms have exercise mats, air conditioning, and sound systems. All instructors are trained professionals, certified in CPR.…
The course provides an introduction to the most prominent forms of media that influence and impact social, business, political, and popular culture in contemporary America. It explores the unique aspects of each medium as well as interactions across various media that combine to create rich environments for information sharing, entertainment, business, and social interaction in the U.S. and around the world.…
1. The incremental salary and training cost associated with hiring a new employee and training him/her to be laptop specialist.…
Abacus is an instrument known to have been used for counting as far back as…
Wilmington is easily accessible from all points in coastal southeastern North Carolina by car or bus, and from other cities by air. On Saturday, non-Wilmington residents may park in permit-only areas provided they display a copy of the 2013 map on the dashboard. There are no parking restrictions on Sundays in Wilmington.…