## Just do my homework!

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Submitted by neel on Wed, 2013-06-26 17:52
due on Sun, 2013-06-30 17:51
neel is willing to pay \$16.00
neel bought 727 out of 1819 answered question(s)

# acct505

2. (TCO G) - (Ignore income taxes in this problem.) Axillar Beauty Products Corporation is considering the production of a new conditioning shampoo that will require the purchase of new mixing machinery. The machinery will cost \$375,000, is expected to have a useful life of 10 years, and is expected to have a salvage value of \$50,000 at the end of 10 years. The machinery will also need a \$35,000 overhaul at the end of Year 6. A \$40,000 increase in working capital will be needed for this investment project. The working capital will be released at the end of the 10 years. The new shampoo is expected to generate net cash inflows of \$85,000 per year for each of the 10 years. Axillar's discount rate is 16%.

Required:

(a) What is the net present value of this investment opportunity?

(b) Based on your answer to (a) above, should Axillar go ahead with the new conditioning shampoo? (Points : 35)

1. (TCO C) Bella Lugosi Holdings, Inc. (BLH), has collected the following operating information below for its current month's activity. Using this information, prepare a flexible budget analysis to determine how well BLH performed in terms of cost control.

 Actual Costs Incurred Static Budget Activity level (in units) 5,250 5,178 Variable Costs: Indirect materials \$24,182 \$23,476 Utilities \$22,356 \$22,674 Fixed Costs: Administration \$63,450 \$65,500 Rent \$65,317 \$63,904

(Points : 30)

 2

(TCO B) Madlem, Inc., produces and sells a single product whose selling price is \$240.00 per unit and whose variable expense is \$86.40 per unit. The company's fixed expense is \$720,384 per month.

Required:

Determine the monthly break-even in either unit or total dollar sales. Show your work! (Points : 25)

1. (TCO F) Buckhorn Corporation bases its predetermined overhead rate on the estimated machine hours for the upcoming year. Data for the upcoming year appear below.

 Estimated machine hours 85,000 Estimated variable manufacturing overhead \$5.55 per machine hour Estimated total fixed manufacturing overhead \$951,888

Submitted by neel on Wed, 2013-06-26 17:53
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xx xxxx G) x xxxxxxx xxxxxx taxes xx this xxxxxxxxx xxxxxxx xxxxxx Products xxxxxxxxxxx xx xxxxxxxxxxx xxx xxxxxxxxxx of x new xxxxxxxxxxxx xxxxxxx that will xxxxxxx the purchase of xxx xxxxxx machinery. The xxxxxxxxx will cost xxxxxxxxx is expected to have x useful life xx xx years, and xx expected to have a xxxxxxx value of \$50,000 at xxx xxx of xx years. The xxxxxxxxx will xxxx need x xxxxxxx xxxxxxxx xx xxx xxx xx Year xx x xxxxxxx increase in working capital xxxx xx needed xxx this xxxxxxxxxx xxxxxxxx xxx xxxxxxx capital xxxx be xxxxxxxx at xxx end xx the xx years. xxx new shampoo is xxxxxxxx to generate net cash inflows of xxxxxxx xxx xxxx xxx xxxx of the xx xxxxxx xxxxxxxxx xxxxxxxx xxxx is xxxx  xxxxxxxxxxxxx xxxx is xxx net xxxxxxx xxxxx xx xxxx xxxxxxxxxx xxxxxxxxxxxx

xxxxxxx
 xxx xxxxxxx Year xxxx xxxx discount xxxx PV of xxxx

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