Fairview Corporation recorded the following in 2018: After-tax net income was $20 million in 2018. The actual share count at the

Answer:

The overall expenditure for transporting the containers to the U.S. amounts to $2,594,930

Explanation:

Consider the following details about Company WWG:

Total Current volume (CBM) = 190,000

Percentage shipped directly = 0.89

Volume shipped directly (CBM) = 169,100

Volume at consolidation center = 190,000 - 169,100 = 20,900

To compute the shipping expenses for the company as outlined below:

Shipping Cost calculations

Direct shipping by Container type (in Feet) 20 40

Volume (%) 0.21 0.79

Volume (CBM) = 169,100*0.21 =169,100*0.79

= 35,511 =133,589

Container capacity utilized 85% 85%

Container center by container type

Volume (%) = 100

Volume (CBM) = 20,900

Container capacity used = 96%

Container capacity (CBM) (34)

Containers shipped = 35,511/ (34*0.85) = 1,229

Shipping Cost per container = $480

Shipping Costs by container size ($) = 1,229*480 = $589,920

Container capacity (CBM) (67)

Containers shipped = 133,589/ (0.85*67) + 20,900/ (0.96*67) = 2,671

Shipping Cost per container = $600

Shipping Costs by container size ($) = 2,671*600 = $1,602,600

Calculate the total shipping cost as follows:

Total shipping fees = $589,920 + $1,602,600 = $2,192,520

Determine the operating costs for the consolidation center as follows:

Number of centers = 4

Annual fixed cost per center = $75,000

Total annual fixed costs = $75,000*4 = $300,000

Variable cost per CBM = $4.9

Total annual variable cost = 20,900*$4.9 = $102,410

Total annual consolidation center expenses = $300,000+$102,410 = $402,410

Now compute the complete cost of moving containers to the U.S. as below:

Total Cost = Total Shipping Fees + Total Annual Consolidation center Expense

= $2,192,520 + $402,410

= $2,594,930

Thus, the entire cost involved in shipping the containers to the U.S. is $2,594,930.

Answer:

The interest amounts to $1,000,000.

Explanation:

The standard format of an income statement includes:

Revenue/Sales (+)

Cost of Goods Sold (COGS) (-)

=Gross Profit

Marketing, Advertising, and Promotion Expenses (-)

General and Administrative (G&A) Expenses (-)

=EBITDA

Depreciation & Amortization Expense (-)

=Operating Income or EBIT

Interest (-)

Other Expenses (-)

=EBT (Pre-Tax Income)

Income Taxes (-)

=Net Income

For this case:

EBIT equals $6,000,000.

The interest is to be determined.

Tax is calculated as 0.40.

EBITDA stands at $3,000,000.

The interest formula is: interest = [EBITDA / (1 - tax)] - EBIT

Substituting values, interest = 3000000 / 0.60 - 6000000 = -$1,000,000.

With EBIT at 6 million, the interest is $1 million, and the tax amounts to 2 million (calculated as (EBIT - interest) * 0.40).

Thus, the net income is $3 million.

Answer:

additional revenue = $26,250

relevant costs:

direct materials = 350 x $82 = $28,700

direct labor = 525 x $15 = $7,875

setup hours = 1 x $5 = $5

inspection costs = 20 x $5 = $100

machining = 175 x $3 = $525

total relevant costs = $37,205

1) change in income if order is accepted:

total revenue - total relevant costs = $26,250 - $37,205 = -$10,955

the company will incur a loss of $10,955 if the order is approved.

2) if the cost of direct materials is decreased by $13 per unit = $13 x 350 = $4,550, and if direct labor can be reduced by 0.5 hours per unit = 175 hours (= 175 x $15 = $2,625) ⇒ total relevant costs will be lowered by $7,175.

It results in a $3,780 (= $10,955 - $7,175) loss if the special order is accepted.

Answer:

$60000

Explanation:

A total of 1000 items are to be manufactured each week for a duration of 30 weeks.

Calculating the total number of products gives us 30 * 1000

= 30000

The filter requires changing after every 100 products, with each filter costing $50.

The total number of filters utilized is

= 30000/100

= 300.

Thus, the cost per product equals $1.5

The overall cost can be determined as

($1.5*30000)+($50*300)

= $45000+$15000

= $60000

Answer:

a) The company completes its inventory turnover at 1.5 times.

b) The per unit inventory cost for a product priced at $1000 is $166.67.

Explanation:

a) number of units sold = ($60000000/year)*(1 unit/$2000)

                               = 30000 units/year

COGS = 30000 units/year*$1000/unit

           = $30000000/year

inventory = $20000000

flow time = inventory/flow rate

                = $20000000/30000000 per year

                = 0.67 years

inventory turns = 1/flow rate

                           = 1/(0.67)

                           = 1.5

Thus, the company turns its inventory at 1.5 times.

b) %inventory cost per device = 25%*0.6667 years

                                                   = 16.667%

16.667%*$1000 = $166.67 per unit

Hence, the per unit inventory cost for a product priced at $1000 amounts to $166.67.