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- A silo consists of a right circular cylinder surmounted by a hemisphere. Find the most economical proportions for the silo, if the walls cost Php 5/sq in, the floor costs Php10 /sq in and the roof costs Php 15/sq in.4.) After 10 years of production, the chemical manufacturing plant has become very successful. Because of its success, a great demand for products came as many consumers wanted the company to sell them their products. To meet the demand, three alternatives were considered. Work overtime to meet demands. Annual overtime expenses are $500,000. Expand the plant to accommodate more production. Fixed annual expenses are $2,500,000. Make a contract with another company to produce additional products at a rate of $1,000,000. The cost of manufacturing products from the three alternatives are $3500, $3000 and $3250 per unit respectively. The plant sells every unit made regardless of how they were made at $15,000 per unit. The expected demand for the product is 150 units with a probability of 50% 250 units with a probability of 35% 350 units with a probability of 7.5% 400 units with a probability of 5% 500 units with a probability of 2.5%Assume a sales price per unit of $25, variable cost per unit $15, and total fixed costs of $18000. What is the breakeven point in dollars?
- Break-Even Analysis You own a business selling burgers. It costs Php 7.00 to make one burger and that is your variable cost. You sell each burger for Php 12.50. Your cost for rent, utilities, overhead, etc. is Php 100,000 per month. How many burgers you would need to sell to break even? What should be the selling price per burger if the break-even point will be brought down to 15,000 burgers?The following table gives the annual revenue for two different companies (in billions of dollars) for a 10-year period Construct a boxplot for Company A. Year 2007 2008 2009 Company A 94 100 99 99 Company B 46 63 60 69 2010 2011 2012 2013 2014 2015 2016 106 102 101 92 89 84 78 76 82 93 89 74 Min= Q₁ = (Type integers or decimals.) *** What is the five-number summary of the annual revenues for Company A? Q₂ = Q3 = Max =Company DEF has a choice of two machines to purchase. They both make the same product which sells for P10. Machine A has FC of P5,000 and a per unit cost of P5. Machine B has FC of P15,000 and a per unit cost of P1. Under what conditions would you select Machine A?
- 2. Smart Manufacturing Company is planning to reduce its labor costs by automating a critical task that is currently performed manually. The automation requires the installation of a new machine. The cost to purchase and install a new machine is Gh¢15,000. The installation of machine can reduce annual labor cost by Gh¢4,200. The life of the machine is 15 years. The salvage value of the machine after fifteen years will be zero. The required rate of return of Smart Manufacturing Company is 25%. Should Smart Manufacturing Company purchase the machine?You purchased a drill press machine for $50,000. It is expected to have a useful life of 8 years. The accounting department tells you that the annual capital cost is $9,740 at i = 12%. What salvage value is used in obtaining the annual capital cost of this machine?(a) $3,010(b)$4,000(c) $4,997(d)$4,200Doctor J. is considering purchasing a new blood analysis machine to test for HIV; it will cost $60,000. He estimates that he could charge $25.00 for an office visit to have a patient's blood analyzed, while the actual cost of a blood analysis would be $5.00. What would be his profit if he were to perform 5,000 HIV blood analyses?
- A food processing plant consumes 600,000 kW-hr of electrical energy annually and pays an average of P 2.00 per kW-hr. A study is being made to generate its own power to supply the plant the energy required. The power plant installed, costs P 2,000,000; annual operation and maintenance, P 800, 000; other expenses, P 100,000 per year. The life of the plant is 15 years; salvage value at the end of life is P 200,000; annual taxes and insurance 6% of first cost, and the rate of interest is 15 %. Using the sinking fund method for depreciation, determine the ROR of the power plant.Break-even analysis is an important tool for managing any business, including colleges and universities. Identify 3 areas where break-even analysis might be used at a university. For each area, identify the revenues, fixed costs, and variable costs.After deciding to have three machines to meet the forecast demand for the coming five years, you are considering the following information to decide on the best machines to buy. Alternative Economic life Investment/machine Salvage value/machine Capacity Italian 9 $200000 12000 100 unit/hour German 9 $250000 25000 100 unit/hour Japanese 9 220000 30000 100 unit/hour You are expecting to sell 2500 units a day 5 days a week at a unit cost of $3 with annual incease of 1%. Labor per hour per machine is $10 and expected to remain the same over the whole period. Annual material cost (including waste) is expected to be $250000 for the German machine, $220000 for the Italian and $200000 for the Japanese. Maintenance and other operating expenses (excluding depreciation) are expected to total $180000 per year with annual increase of 3%. Which machine would you buy if the the cost of capital (discount rate is 12%).