Mackey Publishing Company (Mackey is a publisher of novels. The monthly equipment maintenance cost for Mackey is considered to be a mixed cost The variable portion of the cost is related to the number of novels published. The production volume and maintenance costs for the past six months are presented below. Mackey uses the high-low method to separate mixed costs into its fixed and variable portions. Month Volume of Production (Number of Novels) Equipment Maintenance Costs May 368.000 $4,700 June 583,000 $7,500 July 222,000 $3,800 August 103,000 $2.900 September 556,000 $8.900 October 219.000 $3,800 Do not enter dollar signs or commas in the input boxes. a) Calculate the variable rate for the equipment maintenance cost Round your answer to 5 decimal places Variable Cost per Units a) Calculate the variable rate for the equipment maintenance cost Round your answer to 5 decimal places Variable Cost per Unit: $ b) Calculate the fixed portion of the equipment maintenance cost. Round your answer to the nearest whole number Fixed Cost: $ C) Assume that 420,000 novels is the budgeted production level for October. Using the results of the high-low method in parts a) and what is the expected total equipment maintenance cost for October? Round your answer to 2 decimal places Expected total equipment maintenance cost for October 5 Previous page Manny Petty Spa Company offers various services such as facials, laser hair removal and microdermabrasion Currently, the company is considering purchasing the following spa equipment Laser Hair Removal Machines Microdermabrasion Machines Facial Oxygen Units Cost per Machine $6/780 $27,320 $23,820 Annual Cash Inflow $121.900 $221.920 $43,310 Annual Cash Outflow $88.500 $185,900 $28,060 Required Rate of Return 12% 896 Useful Life 4 years 4 years 3 years Salvage Value $210 $230 $1,000 105 Assume that each equipment's annual cash flow will occur for the period equal to its useful life. Do not enter dollar signs or commas in the input boxes. Use the present values tables in the textbook appendix Use the negative sign for negative values. Round your answers to the nearest whole number a) Determine the NPV of each piece of equipment Laser Hair Removal Machine: S Microdermabrasion Machine: 5 Value of owners' equity at the end of January is $30,000 Calculate the value of owners equity at the end of February, after the following transactions occurred: cash revenues $14,000, cash experises $5,000, expenses on account payable in March $3,000, interest on loan $1,000, bought fixed assets for $20,000 cash and billed travel expenses of $2,000 to a credit card payable in March. Select one a. $27,000 b. 533,000 C. $53,000 d. 520,000 Next page
