1. StillWater Mining Company a) Interest Rate 12% Price per ounce $ 1‚500.00 Cost per ounce $ 400.00 Total ounces a year 10‚000 Profit per ounce $ 1‚100 Revenue per year $ 15‚000‚000.00 Cost per year $ 4‚000‚000.00 Profit per year $ 11‚000‚000.00 Every year for the next 10 years‚ the firm earns a profit of $11 Million. The cash flow (in $ Million) is shown below: Year T T+1 T+2 T+3 T+4 T+5 T+6 T+7 T+8 T+9 Profit 11 11 11 11 11 11 11 11 11 11 Using NPV formula‚ we find NPV=$62
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point cost is equal to revenue which means there is neither loss nor profit at the intersection of sales line and cost line (Frongello). a) As two graphs are provided in the question; the horizontal line shows the fixed cost where the two semi-vertical (upright) lines show variable cost and sales‚ respectively. Provider B has greater fixed cost than provider A because B’s fixed cost line is higher than A’s; therefore‚ provider B has greater fixed costs than provider A. Variable cost is determined
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90 Average load factor (percentage of seats filled) 70% Average full passenger fare $ 160 Average variable cost per passenger $ 70 Fixed operating cost per month $3‚150‚000 a. What is the break-even point in passengers and revenues per month? b. What is the break-even point in number of passenger train
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$113‚800.00 $409‚680.00 $273‚120.00 Variable expense $120‚262.50 $53‚450.00 $192‚420.00 $128‚280.00 Sales commission $- $- $61‚452.00 $40‚968.00 Total CM $135‚787.50 $60‚350.00 $155‚808.00 $103‚872.00 Total fixed expense $94‚333.30 $94‚333.30 $15‚920.00 $15‚920.00 Operating income $41‚454.20 $(33‚983.30) $139‚888.00 $87‚952.00 Based on both qualitative and quantitative analysis‚ Foxy should hire sales representatives in the key fashion
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Professor Bollapragada San Francisco State University Fall‚ 2010 Overview 1. Chapter 10 Case Study: Delivery Strategy at MoonChem a. Annual cost of existing strategy b. Considering different delivery options c. Impact of the proposed recommendation on consignment inventory 2. Chapter 11 Case Study: Managing Inventories at Alko Inc. a. Annual costs b. Savings associated with NDC and recommendations c. Recommendation and evaluation of other distribution systems 1. Chapter 10 Case Study:
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capacity Machine capacity Timetable for purchase‚ production and sale of products Costs Financing Exchanging currencies Summary of the effect of influencing factors 2 Decisions 2.1 2.2 2.3 2.4 2.5 Company decisions Sales decisions Purchasing decisions Production decisions Financial decisions 21 22 23 27 28 31 3 Annexes 3.1 3.2 3.3 Capacity calculation for period 0 Calculation of manufacturing costs in period 0 Determining the change in stock value in period 0 33 34 35 36 ©
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Question 1 2 out of 2 points In general‚ an increase in price increases the break even point if all costs are held constant. Answer Selected Answer: False Correct Answer: False Question 2 2 out of 2 points If variable costs increase‚ but price and fixed costs are held constant‚ the break even point will decrease. Answer Selected Answer: False Correct Answer: False Question 3 2 out of 2 points Parameters are known‚ constant
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Name__________________________________ 1. The following information relates to a job cost system in a factory: For the year Estimated Actual Factory Overhead $600‚000 $635‚000 Direct Labor $500‚000 $525‚000 Direct Materials $500‚000 $520‚000 Direct Labor Hours 300‚000 hrs. 290‚000 hrs. The factory uses a predetermined overhead rate per direct labor hour to apply factory overhead. During the year jobs which cost $1‚200‚000 were completed‚ and finished goods costing $1‚000‚000 were
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the position. Each candidate will be provided with the information below and then asked to prepare a series of reports‚ schedules‚ budgets‚ and recommendations based on that information. The information provided to each candidate is as follows. Cost Items and Account Balances Administrative salaries $15‚500 Advertising for helmets 11‚000 Cash‚ December 1 –0– Depreciation on factory building 1‚500 Depreciation on office equipment 800 Insurance on factory building 1‚500 Miscellaneous
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down any plants any plants‚ its weekly costs will change‚ as fixed costs are lower for a nonoperating plant. Table 1 shows production costs at each plant‚ both variable at regular time and overtime‚ and fixed when operating and shut down. Table 2 shows distribution costs from each plant to each warehouse (distribution center). TABLE 1 Andrew-Carter‚ Inc.‚ Variable Costs and Fixed Production Costs per Week TABLE 2 Andrew–Carter‚ Inc.‚ Distribution Costs per Unit Questions to answer
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