Marigold Corp. has several outdated computers that cost a total of $17800 and could be sold as scrap for $300O. They could be updated for an additional $1600 and sold. If Marigold updates the computers and sells them, net income will increase by $9000. At what price were the updated versions sold?
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- Bramble Corp. is contemplating the production and sale of a new widget. Projected sales are $416000 (or 80000 units) and desired profit is $40000. What is the target cost per unit? $4.70 $5.00 $5.20 $5.70Please solve this MCQs Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $464,000 or a new model 220 machine costing $405,000 to replace a machine that was purchased 10 years ago for $439,000. The old machine was used to make product I43L until it broke down last week. Unfortunately, the old machine cannot be repaired.Management has decided to buy the new model 220 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product I43L.Management also considered, but rejected, the alternative of simply dropping product I43L. If that were done, instead of investing $340,000 in the new machine, the money could be invested in a project that would return a total of $456,000.In making the decision to buy the model 220 machine rather than the model 370 machine, the sunk cost was: $456,000 $464,000 $439,000 $405,000Swifty Corporation is contemplating the production and sale of a new widget. Projected sales are $360000 (or 75000 units) and desired profit is $45000. What is the target cost per unit? $4.20 $4.80 $5.40 $6.00
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- If you buy the new machine you will be able to sell the existing machine for $6,000. The new machine will cost $10,000 for delivery and installation, on top of the purchase price. Making your product more quickly is important because you currently cannot meet the demands of your orders. You are currently selling every widget you produce. The machine will cost $100,000 today and will require annual maintenance of $5,000 each year (except for the final year), starting at the end of the first year. You expect that your machine will last for 8 years before you need to purchase the next machine. At that time, you expect you will be able to sell the machine for $7,800. You can buy the machine now and have it delivered and installed by tomorrow. You expect that you will sell 2,000 more widgets in year 1 and that this number will increase by 20% each year for the next 4 years after that before leveling off at that level of sales for the remaining years you own the machine. You can obtain more…Diliman Republic Publishers, Inc. is considering replacing an old press that cost P800,000 six years ago with a new one that would cost P2,250,000. Shipping and installation would cost an additional P200,000. The old press has a book value of P150,000 and could be sold currently for P50,000. The increased production of the new press would increase inventories by P40,000, accounts receivable by P160,000 and accounts payable by P140,000. Diliman Republic’s net initial investment for analyzing the acquisition of the new press assuming a 35% income tax rate would be A. P2,450,000 B.P2,425,000 C. P2,600,000 D. P2,250,000Quorum Corp. wants to replace a 5-year-old machine with a new machine that is more efficient. The old machine cost $20,000 when new and has a current book value of $8,000. Quorum can sell the old machine for $5,000. The company has a marginal tax rate of 40%. What will be the cash flow impact from the sale of the old machine on the initial outlay for a new machine? a) $3,800 b) $5,000 c) $6,200 d) $8,000
