Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

fT? following N\'formator; dopies to the quesbur15 displayed below nrese at 300

ID: 2529372 • Letter: F

Question

fT? following N'formator; dopies to the quesbur15 displayed below nrese at 300 urits par yoar and a racuzian at 20 parcant In the Iabar cas per unit Producticn and sales volume 120000 rits Toc: Unr 5 90 Direct maceiel erleble menurecturing averhead Contnbution mergi Fued menufecturing costs 2190.0o0 Required infomation 2.30 poits ??. Ccmplote the following tablo showing tnc7otais. (Enter all answers in whole dollars.) and Saks Volumc 05,000 Units $120,000 Units Total Variable Cost iract Mataral: S 10 S 10 irect Laber Tocal Varlable Manufacturing Costs Contributian Margin Fixed Merncturin Coels Net Operling Inoome 49 11 3 486 000 5 1,220,000 S 2265,000 2.190.000 3 3,210.000

Explanation / Answer

6)Present vaue of cash flow : [PVA 8%,9 *Annual operating income ] +[PVF 8%,9 *Salvage]

             =[6.2469*3210000]+[.5002*1130000]

              = 20052549+565226

             = 20617775

NPV =Present value -initial cost

         20617775 - 11750000

            8867775