Octavia has received an email from a customer, asking her a question about a product. unfortunately, octavia doesn't know the an

Answer:

To begin with, we require a discount rate; in researching similar questions, I found that the discount rates ranged from 4% to 8%, so I opted for 6%.

The company has two options: continue operating in a competitive market or reduce its prices to eliminate competition.

Utilizing the perpetuity formula, the present value for the first option is calculated as follows: = $10,000,000 / 0.06 = $166,666,667

For the second option, the present value is:

PV of price reduction = $1,000,000,000 / 1.06 = $943,396,226 plus the present value of future net income

The present value of future net income = $50,000,000 / 0.06 = $833,333,333, but this figure must be discounted as the terminal value relates to the end of the current year, not now: $833,333,333 / 1.06 = $786,163,552

Consequently, the NPV associated with lowering prices is $786,163,552 - $943,396,226 = -$157,232,674, indicating this is certainly not a favorable plan.

Answer:

The net operating income using variable costing totals $139,000.

Explanation:

Tustin Corporation

Contribution Margin Income Statement for Year 1

Amount

Revenue: $680,000

(10,000 * $68)

Subtract: Variable Expense

Direct Material = $100,000

(10,000 * $10)

Direct Labor = $60,000

(10,000 * $6)

Variable manufacturing overhead = $40,000

(10,000 * $4)

Variable selling and administrative = $60,000

(10,000 * $6)

Contribution = $420,000

Subtract: Fixed Costs

Fixed Manufacturing overhead = $220,000

Fixed selling and administrative = $61,000

Net Income = $139,000

El gerente de una planta de procesamiento de alimentos enlatados tiene dos opciones de máquinas etiquetadoras. Con base en un análisis de tasa de retorno con un MARR del 20% por año, determina (a) qué modelo es económicamente mejor, y (b) si la selección cambia, siempre que ambas opciones tengan una vida útil de 4 años y todas las demás estimaciones permanezcan iguales.

Answer:

La respuesta se encuentra a continuación

Explanation:

Primero, compararemos los valores presentes (PV) de todos los gastos de las inversiones para tomar una decisión de inversión.

Dada la fórmula de PV = ((C1/(1+r)1) + ((C2/(1+r)2) + ((C3/(1+r)3) +…….+ ((Cn/(1+r)n) + valor presente de la inversión – valor presente del valor de salvamento

Donde, Cn es el gasto incurido en el periodo n y r es la tasa de interés por periodo.

Por lo tanto, para la Máquina A, el valor presente de los gastos es

= ((1600/(1+0.20)1) + ((1600/(1+0.20)2) + 15,000 – ((3000/(1+0.20)2)

= 1333.33 + 1111.11 + 15000 – 2083.33

= 15361.11

Para la Máquina B, el valor presente de los gastos es

= ((400/(1+0.20)1) + ((400/(1+0.20)2) + ((400/(1+0.20)3) + ((400/(1+0.20)4) + 25,000 - ((4000/(1+0.20)2)

= 333.33 + 277.77 + 25,000 – 2777.77

= 22833.33

Por lo tanto, se muestra que la Máquina A es la alternativa de menor costo y debe ser seleccionada.