Question: Calbel (Body) . 11 A A Wrap Text General Copy Merge & Corte S . % ) 1912 : x x 1. Wilcom corting the




Calbel (Body) . 11 A A Wrap Text General Copy Merge & Corte S . % ) 1912 : x x 1. Wilcom corting the purchase or $10.000 spected to produce the following the tower - 2. Ang o n content prea of the described in Quel . Should w e at the event 3. Farrow Co. Expect to all 150,000 t its product is the next 000 Chp 25 Excel Assignment Home Insert Cut Copy Formulas 11 P A Dald A Wrap Text Page Layout Calibri (Body) BIU x + Merge & Center Paste Format 12 x 2. Assuming a 10% return on Investments, compute the net present value of the investment described in Question 1. Should William Co.ace Factor may be hardered, all other values must be formula Present Value of Cash Flows Cash Flow PV Facto Year 1 Year 2 Year 3 Year MMM Years Total Net Present Value Accept investment? 35 36 3. Farrow Co. Expects to sell 150,000 units of its product in the next period with the following results 2,250,000.00 38 39 40 Sales (150,000 units) Costs & Expenses Direct Materials Direct Labor Overhead Selling Expenses Admin Expenses Total Costs & Expenses Net Income 43 300,000.00 600,000.00 150,000.00 225,000.00 385,500.00 1,660,500.00 589,500.00 45 46 49 The company has an opportunity to sell 15,000 additional unis at $12 per unit. The additional sales would not affect its current expected sale costs per unit would be the same for the additional units as they are for the regular units. However, the additional volume would create the 1) total overhead would increase by 15% and (2) administrative expenses would increase by $64,500. Prepare an analysis to determine whe accept or reject the offer to sell additional units at the reduced price of $12 per unit Combined Normal Volume Additional Volume Chp 25 Excel Assignment + Ready Excel File Edit View Innert Format Tools Date Window Help Chapter 25 - Excel Assignment - Origin Home View Developer . Insert X ou Copy Page Layout Callbri (Body) Formulas 11 A Data A Review = Merge & Center - $ % ) * 112 x fx 16 Oca, pet al 150.000 of product in the period with the following results 2,250,000.00 44 Admin Expenses 49 50 51 52 The company has an opportunity to sell 15.000 tonalni $12 per unit. The additional sales would not fetits current expected sales Direct materials and labor costs per unit would be the same for the additional units as they are for the regular units. However, the additional volume would create the following incremental costs: total overhead would increase by 15% and administrative spent would increase by 4.500. Prepare an analysis to determine whether the company should accept or reject the offerto sell additional units at the need price of $12 per unit. Direct Materials Direct Labor Selling Expenses Admin Expenses Tot costs S ee Accepter Chp 25 Excel Assignment - Ready IT % Sex Fri 3:23 PM Chapter 25 - Excel Assignment - Original Wrap Text General A . Clear Table B.1 Present of our even wheach Periods 1 2 3 4 5 6 7 8 9 10% 12% 15% 0.990100010000615095340004 0 92500.0110 .00 0 5696 0.003 0.0612096 0940 9070030008734 0357305417038364.92 0.7561 000000000291 010 0 0 0 0555555021 079 071001084 06330 01 0571 09109 110 00110 000 000 35001 T0 0 0 0 0 DO TOT OO 01 10000000000 V O LDSO000160404241 0 O OO 75 0611910 155500 07224600151 09 01 02 0 0 0 0 0 0 151 15 0110110 0605000500012 000 7700577535050551500 1006 LOOOOO 011000000 0 500 000 117 0 00 0011113 1500 1000 1300 Co 2 88 0 @OM ODPORU Fri 3:23 PM 25-Eclaimen Original De s. ) . Concora come c a n be foret cow T oyot S88 @ @ M0,KPU
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