Question: Please help me solve these problems, thanks so much! Exercise 1212A (Algo) How the allocation of fixed cost affects a pricing decision LO 123 Adams

 Please help me solve these problems, thanks so much! Exercise 1212A(Algo) How the allocation of fixed cost affects a pricing decision LO123 Adams Manufacturing Co. expects to make 30,500 chairs during the year1 accounting period. The company made 4,000 chairs in January. Materials and

Please help me solve these problems, thanks so much!

Exercise 1212A (Algo) How the allocation of fixed cost affects a pricing decision LO 123 Adams Manufacturing Co. expects to make 30,500 chairs during the year 1 accounting period. The company made 4,000 chairs in January. Materials and labor costs for January were $17,500 and $24,700, respectively. Adams produced 1,900 chairs in February. Material and labor costs for February were $9,000 and $12,500, respectively. The company paid the $762,500 annual rental fee on its manufacturing facility on January 1 , year 1 . The rental fee is allocated based on the total estimated number of units to be produced during the year. Required Assuming that Adams desires to sell its chairs for cost plus 45 percent of cost, what price should be charged for the chairs produced in January and February? (Round intermediate calculations and final answers to 2 decimal places.) x Answer is complete but not entirely correct. Gibson Company is considering investing in two new vans that are expected to generate combined cash inflows of $31,500 per year. The vans' combined purchase price is $91,000. The expected life and salvage value of each are six years and $20,300, respectively. Gibson has an average cost of capital of 10 percent. (PV of $1 and PVA of $1 ) (Use appropriate factor(s) from the tables provided.) Required a. Calculate the net present value of the investment opportunity. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to 2 decimal places.) b. Indicate whether the investment opportunity is expected to earn a return that is above or below the cost of capital and whether it should be accepted. Exercise 16-10A (Algo) Using the internal rate of return to compare investment opportunities LO 163 Velma and Keota (V\&K) is a partnership that owns a small company. It is considering two alternative investment opportunities. The first investment opportunity will have a three-year useful life, will cost $7,372.68, and will generate expected cash inflows of $3,500 per year. The second investment is expected to have a useful life of three years, will cost \$8,125.71, and will generate expected cash inflows of $3,500 per year. Assume that V\&K has the funds available to accept only one of the opportunities. (PV of $1 and PVA of $1 ) (Use appropriate factor(s) from the tables provided.) Required a. Calculate the internal rate of return of each investment opportunity. (Do not round intermediate calculations.) b. Based on the internal rates of return, which opportunity should V\&K select? Exercise 16-14A (Algo) Determining the unadjusted rate of return LO 164 Franklin Painting Company is considering whether to purchase a new spray paint machine that costs $3,800. The machine is expected to save labor, increasing net income by $570 per year. The effective life of the machine is 15 years according to the manufacturer's estimate. Required a. Determine the unadjusted rate of return based on the average cost of the investment. (Enter your answer as a whole percentage (e.g. 0.55 should be entered as 55 ).) x Answer is complete but not entirely correct

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