To accumulate $375,000 by the eighth year, the company needs to make eight yearly deposits earning 7% interest, with each deposit amounting to $34,874.16. To compute this, using an Excel spreadsheet with the Solver add-in is optimal. In a table spanning 8 years, arrange the payments following the interest rule: payment year 1*(1+7%)^8 + payment year 2*(1+7%)^7 +..., until payment year 8*(1+7%)^1, ensuring all payments remain equal.
Response:
The company's initial salary expenditure amounts to Rs. 72,000
Clarification:
First, we need to denote the employee ratio with letters
3A=B
2C=D
where A and C indicate the number of employees
B signifies the salary before, while D is the salary after
It is stated that the salary after the change is the original minus Rs. 12,000
which we represent as D=B-12,000
We also know the salaries for each employee rose from 4 to 5
This leads to C=(5/4)A or A=(4/5)C
From here, we can formulate the equation
2((5/4)A)=B-12,000
A=(2/5)(B-12,000)
We employ this in the initial expression
3(2/5)(B-12,000)=B
1.2B-14400=B
0.2B=14400
B=72,000
Answer:
The total required amount is $7,056.46
Explanation:
Given the following details:
You aim to accumulate enough savings to produce an annual cash flow of $55,000 for 25 years during retirement. How much should you save each year, assuming a return of 7.5 percent on your savings?
Final value = 55,000 * 25 = 1,375,000
Using the formula: FV = {A*[(1+i)^n-1]}/i
A represents the annual contribution.
To isolate A:
A = (FV*i)/{[(1+i)^n]-1}
A = (1,375,000*0.075)/[(1.075^38)-1]= $7,056.46
$8,400
The calculation for the annual financial benefit (loss) for the organization is detailed below:
Particulars Make Buy
Direct material $53,600 (8,000 units × $6.70)
Direct labor $64,800 (8,000 units × $8.10)
Variable manufacturing overhead $8,800 (8,000 units × $1.10)
Supervisor's salary $16,000 (8,000 units × $2)
Fixed manufacturing overhead $2,000
Opportunity cost $16,000
Purchase cost $169,600 (8000 × $21.20)
Total relevant cost $161,200 $169,600
Financial (loss) is = $161,200 - $169,600 = -$8,400
We simply compared the make and buy costs and found that purchasing incurs a higher cost than manufacturing, leading to an excess expense of $8,400 if the external supplier is chosen.
It indicates a financial advantage of $18,800 for accepting the offer. Kleffman Corporation currently produces part X31 with an annual output of 2,000 units. According to their accounting data, the production costs at this level are as follows: DM $6.90, DL $4.90, V MO $8.00, Supervisor $2.20, Depreciation $1.40, General $2.80, totaling $26.20 per unit. The unavoidable cost amounts to $2.80 x 2,000 units = $5,600. The depreciation is treated as a sunk cost, reflecting no cash flow impact on the business. Making the part internally results in a total expenditure of $52,400. The potential opportunity cost associated with generating an additional segment margin of $18,800 comes into play. The total cost aligns at $71,200 against the purchase cost of $23.40 x 2,000 = $46,800. The unavoidable cost remains at $5,600, resulting in a total of $52,400 when taken into account. Thus, the differential is computed as 71,200 - 52,400 = 18,800.
