City University Of New York Operations And Supply Chain Management Assignment Help - income taxes

Question - 1.
2. 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%.
3. Required:
(a) Wha ...Read More t 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)
4. 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
5. (Points : 30)
6.
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

7. ...Read Less

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