20 Q20 Vertical Pixel Limited has two direct-cost categories: direct materials and direct manufacturing labour. Its single indirect-cost category (manufacturing overhead) is allocated on the basis of machine-hours. Numbers taken from January budget are as follows: (1 point each) Direct material used Opening finished stock Closing finished stock Direct manufacturing labour Manufacturing overhead Cost of goods manufactured Cost of goods sold Cost of goods available for sale XXXXXXXX 153,000 XXXXXXXX 350,000 727,000 1,910,000 2,013,000 XXXXXXX How much is the direct material used? 833000 How much is the closing finished stock? 50000 How much is the cost of goods available for sale? 2063000 100000400- Fel. 3 av 3 pong.

Vertical Pixel Limited has two direct-cost categories: direct materials and direct manufacturing labour. Its single indirect-cost category (manufacturing overhead) is allocated on the basis of machine-hours. Numbers taken from January budget are as follows: (1 point each) Capital investment Suppose you were asked to decide whether or not a new consumer product should be launched. Based on projected sales and costs, you can expect that the cash flows over the five-year life of the project will be 2000tkr in the first two years, 4000tkr in the next two years, and 4500tkr in the last year. The initial investment is 10000kkr, to begin the production and after the project is done you can sell the equipment 500tkr. Based on corporate policy, the cost of capital for evaluating new products is 10%. Should the project be launched? Why or why not? Calculate and give a clear answer for each one of the decision criteria below: ( 10 points) a. If the decision is based on the project's NPV? b. If the decision is based upon pay-back-time? And the hurdle rate for pay-back is 3 years. Fill in your answer here