Hello, May you please help me find the answers for these homework questions? Thanks!

Collins Company had the following cost data available. The Collins accountant believes that direct labor hours is the correct cost driver to use to predict and manage these costs.

1.	The only relevant costs in non-routine decision making are future costs that vary among decision alternatives.
	True False

2.	In deciding whether to sell an old copy machine and buy a new one for your business, the current resale value of the existing old machine is
	an opportunity cost and relevant to the decision is sunk cost and irrelevant to the decision an opportunity cost and irrelevant to the decision a sunk cost and relevant to the decision

3.	In deciding whether to buy a new copy machine for your business and assuming the existing old machine has no resale value, the original purchase price of the old machine is
	an opportunity cost and relevant to the decision a sunk cost and irrelevant to the decision an opportunity cost and irrelevant to the decision a sunk cost and relevant to the decision

4.

Detmer, Inc. manufactures 6,000 units of a needed component part incurring per-unit costs as follows: direct materials, $7; direct labor, $11; variable manufacturing overhead, $2. Fixed manufacturing overhead costs incurred in the production of this component part amount to $54,000. The company can buy a comparable finished part from a Hong Kong manufacturer for $22 per unit. Assuming one-half of the fixed manufacturing overhead costs are direct and could be avoided if the component part is purchased rather than manufactured and no alternative use could be made of any unused production capacity, termination of the manufacture of the 6,000 units and the purchase of the part from the Hong Kong manufacturer would result in a

savings of $15,000 loss of $15,000 savings of $12,000 loss of $12,000 None of the above

5.	Term life insurance not only provides life insurance coverage for a specific period of time, but it also serves as an investment vehicle that can build in value over time.
	True False

6.	Premiums for permanent, whole life or cash surrender value life insurance on the life of a healthy young person are typically less than premiums for term life insurance for the same amount of coverage.
	True False

7.	The monthly mortgage payment for a $100,000, 30 year, 8% fixed rate loan is $734 (rounded to the nearest dollar) and the amount of interest to be paid with the last of the 360 monthly payments amounts to $5 (rounded to the nearest dollar).
	True False

A business project requires the initial outlay of $250,000 in cash.The project will generate cash inflows of $30,000 at the end of each year for the next 15 years. What is the internal rate of return of this project?

8.0%

8.2%

8.4%

8.8%

9.0%

9.2%

2.	Kamila Company is considering whether to invest in a piece of equipment that requires an investment of $40,000 today. The project will provide net cash inflows of $10,000 at the end of each year for five years, and it will have a salvage value of $12,000 at the end of five years. Calculate theinternal rate of return. Ignore income taxes.
	7.93% 14.52% 9.16% 21.05% 83.36% 47.89%

3.

Ryan Company is considering whether to invest in a piece of equipment that requires an investment of $240,000 today. The project will provide net before-tax operating cash inflows of $70,000 at the end of each year for six years, and it will have a salvage value of $0 at the end of six years. Ryan Company uses straight-line depreciation for income tax purposes. The income tax rate is 30% and the discount rate is 14%. Calculate the net present value of the piece of equipment. Don't forget income taxes!!!

negative $49,455 positive $32,207 negative $2,791 positive $59,428 negative $123,340 negative $14,457

4.

Taraz Company has assembled the following data with respect to six projects. Project 1: Initial cost = $60,000; NPV = $2,000 Project 2: Initial cost = $56,000; NPV = $1,825 Project 3: Initial cost = $65,000; NPV = $2,250 Project 4: Initial cost = $63,000; NPV = $2,200 Project 5: Initial cost = $58,000; NPV = $1,950 Project 6: Initial cost = $61,000; NPV = $2,100 Taraz Company can only do one of the projects. Which ONEis the BEST?

Project 1 Project 2 Project 3 Project 4 Project 5 Project 6

5.

You are planning to live in the city of Houston, Texas for 7 years. You are deciding to rent or to buy a house for this 7-year period Rent: Monthly rental cost will be $2,500 paid at the end of each month. Buy: The purchase price of the house you intend to buy is $250,000. You will pay cash. You believe you can sell the house for $325,000 at the end of 7 years. Which option (buy or rent) is better, and by how much? The interest rate is 12% COMPOUNDED MONTHLY. Ignore income taxes. Also ignore any other factors not specifically mentioned in the data above.

Buy is better. The difference is $32,514. Buy is better. The difference is $58,524. Buy is better. The difference is $311,406. Rent is better. The difference is $32,514. Rent is better. The difference is $58,524. Rent is better. The difference is $311,406.

• $100,000; 15,000 direct labor hours for January
• $80,000; 12,000 direct labor hours for February
• $90,000; 14,000 direct labor hours for March
• $75,000; 11,000 direct labor hours for April
• $85,000; 12,500 direct labor hours for May
• $70,000; 10,000 direct labor hours for June

Use the high-low method to compute the totalamount of monthlyfixedcosts for CollinsCompany.

$0

$15,000

$10,000

$30,000

$90,000

$60,000

2.	Jeff Co. sells its giant cheese wheels for $36 per wheel. The contribution margin ratio is 75% and total fixed costs are $270,000. How many wheels must Jeff sell in order to generate a profit of $54,000?
	12,000 wheels 9,000 wheels 36,000 wheels 2,000 wheels 43,200 wheels 11,500 wheels

3.

Tilly Company had the following cost and volume data for the first four months of the year. January: Cost of $52,500; volume of 9,000 units February: Cost of $40,000; volume of 6,500units March: Cost of $70,000; volume of 14,000 units April: Cost of $60,000; volume of 11,000 units Using theleast-squares methodor thescattergraph method, which ONE of the following is the BEST estimate of thevariablecost per unit?

$4.00 per unit $8.00 per unit $10.00 per unit $15.00 per unit $25.00 per unit $35.00 per unit

4.

Monte Motors sells two different products. Following are the monthly revenues and costs: Product A Sales Quantity: 12,000 units Price per Unit: $5.50 Variable Costs per Unit: $1.15 Product B Sales Quantity: 18,000 Units Price per Unit: $3.00 Variable Costs per Unit: $0.90 Total fixed costs are $225,000. What is the break-even point forthis company in units? Assume that the sales mix stays the same.

30,000 Product A and 45,000 Product B 15,000 Product A and 15,000 Product B 60,000 Product A and 40,000 Product B 22,500 Product A and 15,000 Product B 18,000 Product A and 27,000 Product B

5.	New Braunfel's Flood Insurance Agency had total sales last year of $500,000, total variable costs of $200,000, and total fixed costs of $125,000. Accordingly, New Braunfel's net income for last year was $175,000 ($500,000 - $200,000 - $125,000). What is New Braunfel'sbreak-even point in total sales dollars?
	$312,500 $208,333 $1,250,000 $125,000 $200,000 $325,000