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8. Production: 100,000 + 10,000 – 20,000 Material B 45. MQV: [925,000 – 2,000) – 11,000 (2)] 2.5
Purchases:
90,000 (3) + 24,000 – 22,000 46. DM Var.: 2,500 U (MQV) + 10,500 F (MPUV)
3. Choices A & D: current ratio will decrease 39. Production: 80,000 + 18,000 – 15,000
Choice B: no effect on current ratio DM purchases: 83,000 (5) + 23,000 – 27,000
SUGGESTION: assume amounts with a current ratio
of 4 times as starting point. 40. @ IRR: NPV = 0 or probability index = 1
4. 107,000 = 50% (90,000) + 30% (80,000) + 20% 41. Weighted average CMR
(95,000) + cash sale 30% (20%) + 60% (33.33%) + 10% (50%)
Over-all BES: 18,600 ÷ 31% = P 60,000
6. Cost: 100,000 + 0.01% (3M x 360) = 208,000
Benefit: 6% (3M x 2 days) = 360,000 43. Carrying costs: 100 x (25% x 10) = 250
Stock-out costs: 15% (30x2) 20 = 180
8. VFOH: (2,150 – 1,450) ÷ (75 -40) = 20
At 80% capacity: 20(80) = P 1,600 45. Equity: 1.4 M (40÷70) = 800,000
Dividend: 2M – 6% (10M) – 800,000
10. ARR: (1,000 – 325) ÷ (6,500 ÷ 2) Dividend payout: 600,000 ÷ 2M
11. A firm is most likely to offer cash discounts when 46. Division Z5’s segment margin
competitor also offers the same and the firm is in 50,000 – 42,000 – 70% (6,400)
Need of cash (i.e., early collection).
48. MQV: 30,000 U = (215,000 – SQ) 2
12. Cost of preferred stock: 10 ÷ (107 – 5) Production: 200,000 ÷ 4
Tax effects are considered only for debts.
50. 300 v [150 days – (300 ÷ 6)]
13. Expert systems are also called “knowledge- based
systems” 52. (6,000 – 4,000) x (100,000 ÷ 5,000)
14. Breakeven pt: 247,500 ÷ 45% = 550,000 54. Investment: 7, 554 – 2,500 = 5,054
Safety margin: 900,000 – 500,000 = 350,000 Payback: 2 + 0.36*years
*(5,054 – 4,200) ÷ 2,400
15. Unit sales: (247,500 + 315,000) ÷ 22.5
Additional sales: 25,000 units – 18,000 units 55. Learning rate: 192 ÷ 240
Units Average Total
17. Depreciation, being a non-cash expense is, not 500 240 P 120,000
Considered in NPV. NPV considers its tax effect. 1,000 192 P 192,000
24. AR: (7.2 M ÷ 360) x (36 – 28) = 160,000 inc. 60. 350 days ÷ (35,000 ÷ 4 dozens)
Savings: 6% x 160,000
61. Cost to make: 2 + 12 + 5+ 7 + 3 = 29
25. Residual Income: (+) → RoI > Min. RoI Cost to buy: 27
Residual Income (-) → RoI < Min. RoI
62. Dividend yield x PE ratio = Dividend Pay-out
26. Cash OUT: 30,000 – 2% (50,000 – 20,000)
Cash IN: 500,000 – (50,000 – 20,000) 63. Savings: (75-70) 1,000
Effective rate: 29,400 ÷ 470,000
64. Y = 30,500 + 8x
28. Application rate: 300,000 ÷ (25,000 x 6) = 2
Applied FOH: 162,500 x 2 = 325,000 65. Non- negativity constraint: X, Y ≥ 0
30. “High customer loyalty” applies to monopolistic 67. [(160,000 x .6) – (14% x 200,000)]
Competition rather than perfect competition.
68. Controllable (CON) Variance = Spending (5)
31. (316,000 + 144,000) ÷ (50% - 10%) Variance + Efficiency € Variance
33. Applied FOH: (4,750 x 2) x (80,000 ÷ 10,000) 69. CAPM: 9% + 0.8 (15% - 9%)