1) (ignore income taxes in this problem.) stern corporation is considering the purchase
of a machine that would cost $270,000 and would last for 9 years. at the end of 9 years,
the machine would have a salvage value of $38,000. by reducing labor and other
operating costs, the machine would provide annual cost savings of $54,000. the
company requires a minimum pretax return of 16% on all investment projects.
the present value of the annual cost savings of $54,000 is closest to:
a.$14,202
b.$946,093
c.$486,000
d.$248,778
2) the management of radke corporation has provided the following data concerning its
two productsf74 and e50:
the constrained resource is a particular machine that is available for 10,200 minutes
each month. each unit of product f74 requires 7 minutes on this machine. each unit of
product e50 requires 16 minutes on this machine.
the company is considering launching a new product that would have a variable cost of
$90.00 per unit. it would require 16 minutes of the constrained resource. the absolute
minimum acceptable selling price for the new product should be:
a.$90.00
b.$162.00
c.$94.50
d.$182.80
3) the most recent balance sheet and income statement of flo corporation appear below:
cash dividends were $33.
the net cash provided by (used by) financing activities for the year was:
a.$1
b.($33)
c.($27)
d.$5
4) the following information relates to the mixing department of zaglav products
company for the month of june. zaglav uses a fifo process costing system.
what are the mixing department’s equivalent units related to materials for june?
a.76,000
b.79,000
c.87,000
d.84,000
5) the cost of fire insurance for a manufacturing plant is generally considered to be a:
a.product cost
b.period cost
c.variable cost
d.all of these
6) the following inventory balances relate to bharath manufacturing corporation at the
beginning and end of the year:
bharath’s cost of goods sold was $653,000. what was bharath’s cost of goods
manufactured?
a.$660,000
b.$670,000
c.$682,000
d.$689,000