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Kongo is a manufacturer of agricultural goods. It's abe system has the following 6 acrivity cost pools Actlvity Cost Pool and Labor retated Machine related.

Kongo is a manufacturer of agricultural goods. It's abe system has the following 6 acrivity
cost
pools
Actlvity Cost Pool
and
Labor retated
Machine related.
Machine setups q,
Production orders q, Shipments
General tactory q, Cost and activity data have been supplied for the following products:
Direct materials cost per unit. q, Direct labor cost per unit q, Number of units produced per year q,
K425
$13.00
$5.60
200
Actlvity Rates
$6.00 per direct labor-hour
$4.00 per machine-hour
$50.00 per setup
$90.00 per order
S14.00 per shipment
$9.00 per direct labor-hour
per dilrect tabor-hour
q,
Direct labor-hours q, Machine-hours q, Machine setups
q, Production orders q, Shipments q,
\table[[K425,M 67],[80,500],[100,1,500],[1,4],[1,4],[1,10]]
Required:
Compute the unit product cost of each product listed above.
5. Considerthefollowingprojects:
\table[[Project,C0,C1,C2,C3,C4,C5],[A,-1000,1000,0,0,0,0],[B,-2000,1000,1000,4000,1000,1000],[C,-3000,1000,1000,0,1000,1000]]
alculate the NPV of each project (8 points) and determine in which project the firm should vest/why?(2 points).
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