other parts in this section were solved however I am having some problems with the last 3 questions in the section.
I See The Light Projected Income Statement For the Period Ending December 31, 20x1 $ 1.125 000 00 750.000.00 $ 375 000 00 Sales 25,000 lamps @ $45.00 Cost of Goods Sold @ $30.00 Gross Proft Seling Expenses Fored Variable Commission per unit) $3.00 Administrative Expenses Fored Variable @ $2.00 Total Selling and Administrative Expenses $23,000.00 75,000.00 $ 98.000.00 $42.00000 50.000 00 92,000 00 $ 190.000,00 185,000.00 1 See The Light Projected Balance Sheet As of December 31, 20x1 Current Assets Cash Accounts Receivable 34,710 00 67,500.00 $16.00 8.000.00 500 3000 @ $30.00 $ 90 000 00 200 210.00 Raw Materia Lamp Kits Work in Process Finished Goods Total Current Assets Fred Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets $ 20.000,00 6.800.00 S 13.200.00 213.410 00 $ $ 54.000.00 54,000.00 Current Liabilities Accounts Payable Total Liabetes Stockholders Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 147.410.00 $ 159.410.00 213.410.00 Page 17 aihde PART 7 Capital Decision Making Big A gives his worker's a one hour lunch and two free minute breaks each day. He believes that a cold soda machine would be appreciated by his workers, and an appreciated worker is a good worker He has priced a machine at a national member only warehouse for $2.150. The machine should be viable for years, after which it would be inefficient obsolete and would have to be disposed of at the dump. Big Al believes that cans a day will be purchased. The plant is open five days a week, 50 weeks per year. A case of soda (24 cana) costs 15.76 and Big Al believes that a price of 5.00 per can would win him good wil What is the estimated annual sales in cans of soda? (1701) What is the contribution margin per can of soda? unded to two places (17.02) 0.68 cans) How many cans of soda must be sold each year to breakeven? (Round up to zero places, es 543 cans (1703) Annual incremental cash inflows from the soda machine? (rounded to two places 1.15.00 (17.04) What is the payback period in year rounded to two places, years) (17.05) If the time value of money is 12% per year what is the net present value? Use the tables on page 18 (17.06) What is the internal rate of return Pick the closest interest rate from the tables on page 18 (1707) Page 18 Present Value of Annuity $100 in Arrears b | JULIA B JH2O 1 4 .40 36b 5 1 1.88 | 1724 1810 11 115 14128 1791 1. 1. 1767 11.EP17 417 La || 2.81 1-16 62% 63 | . 16 15 1. 15 HD 12 || IEEE IPH | 162 | || 3.48 | | 1. 15 9 Art API 4. 1 41 TECH | 14 2276 65.C% | 49 16 | 10: 1.1 167 1682 | 140 | 17 3170 21 | | | | 11.162 14 111500 || 1518 1.41: 2 1 1 3037 2974 294 | RESS 1305 11 1478 | 14: 1.5.234 2014 3M . - 3 18.5 21 24 19002 195% 21 20 ) F401 1.414 1 . FULL 137. 0 1 2011 11-21 21.5% 723 22 : 24 | 27.5% 12 24|| 30. | | | | 11.78] 2 250% 1952 | 2 LPG" 25.5% F41 | 202 2 C-13 7- 11 3.5% 1909 || 2012619 70% 146 2260 260 27.5 1682 | 12260 28.0 1 | F2192] 28.0% 1842| 220 | 2483 | 74 0. | d5 A.0" | 15 16 0 8.5% 10 75 1237 1.314 12:31 12|| 11111224 1299 iP| | | 1-21 TEIN TATE || 1210 1274 1811 10. 171 1287 | 10 11 1269 125|| 1015 | || 12 13.7 130 1188 124 179 10 119 14112 10 11 125 1.264 | 1184 11 12 123 100 1 160 | 147 (155 Page 18 Present Value of Annuity $1.00 in Arrears 2.185 1.816 24502671 24302643 2106 18031 lele sale 786 1703079 BOGNI BOSS1031 1 213 1208 1754 81.0% 1.026 1.120 1,171 1199 2002 2 345 2324 2302 2 281 2 260 2.508 27483 2458 15 1.730 700 1707 1103 1 097 1.052 112 1.146 1.140 1.186 1.179 1.173 1.186 16521 85.5% 0.980 1071 1.110 1.141 1.9211 sallallSRBSBSalala 1620 0.974 1.0555 1.099 1.123 1.094 1.117 10 11111 88.OX 00051045 B85 89.0% 89.5% 0.967 0.963 1036 1 077 1.031 1.072 1.020 1038 10211081 22001 1.873 162 162 1.8351 1841 2220 222 1630 1.8081 2.106 2088 2229 39.0% 1.609 1.877 20702209 1.509 1.653 2052 2.188 1.589 1649 2.035 2.168 1.579 18362.018 2.148 1.589 18222.00125129 1,559 1800 1985 2 109 1549 179619002091 1 540 1 782 1953 2072 1530 1.7691937 2054 152117574192112038 1.512174411900 2010 1.502 1.732 1.890 2.000 1.493 17201 1876 1.663 1.48417071861 1966 1475 1.895 1846 1949 1832 1933 470X1458 1672 1.818 1917 47,5% 144010801804 1901 48 0% 14411649 1.790 1885 46N 1432 1638 1.778 1870 49.0% 1424 1627 1.763 1854 49.5% 141616161750 1.839 500X140718051737 1824 1099 1.093 1.087 1,082 1012 1.050 0.933 1.007 1.045 09930110021040 092810081035 1.071 1.065 1050 1054 SSSSSSSSSS 0.91812391025 1044 0.914 195410201039 0.9110.950 1015 1033 0.9070.975 1010 1.028 96 0% 0 903 0.971 1.000 1.023 98.5% 0 900 7 10011012 97.0% 0 890 09020 996 1013 97.5% 893 9 58 1902 1,008 98.0% 0880096409871003 98.65 0.8850 9600 902 1999 99.0% OB. 2 M 097801994 99 65878 0.942 073 0989 100 ONI 06875 09385 0984 If off the chart use 100% AutoSave Page Layout Formulas Data Review view Help Tout Reader PDF o search Connections ABCDEF PART 7 Capital Decision Making 18 Big Al gives his worker's a one hour lunch and two teen minute breaks each day. He believes that a 28 cold soda machine would be appreciated by his workers and appreciated worker is a good worker 29 He has priced a machine at a national member only warehouse for 52,150 The machine should be 30 usable for 6 years after which it would be inefficient obsolete and would have to be disposed of at the 31 dump. Big Al believes that 7 cans a day will be purchased. The plant is open five days a week, 50 32 weeks per year. A case of soda (24 cans) costs $5.76 and Big Al believes that a price of 5.90 per 42 can would win him good will What is the estimated annual sales in cans of soda? 1,575 cans {17.01) What is the contribution margin per can of soda? (rounded to t 0.66 (17.02) How many cans of soda must be sold each year to breakeven? (Round up to zero places, cans) $298888898 543 cans 12.03 incremental cash inflows from the soda machine? to two places. Si (1704 What is the payback period in years? (rounded to 113 114 Introduction FAQ 9 10 | 11 | 12 13 14 15 Type here to search Page 18 Present Value of Annuity $100 in Arrears b | JULIA B JH2O 1 4 .40 36b 5 1 1.88 | 1724 1810 11 115 14128 1791 1. 1. 1767 11.EP17 417 La || 2.81 1-16 62% 63 | . 16 15 1. 15 HD 12 || IEEE IPH | 162 | || 3.48 | | 1. 15 9 Art API 4. 1 41 TECH | 14 2276 65.C% | 49 16 | 10: 1.1 167 1682 | 140 | 17 3170 21 | | | | 11.162 14 111500 || 1518 1.41: 2 1 1 3037 2974 294 | RESS 1305 11 1478 | 14: 1.5.234 2014 3M . - 3 18.5 21 24 19002 195% 21 20 ) F401 1.414 1 . FULL 137. 0 1 2011 11-21 21.5% 723 22 : 24 | 27.5% 12 24|| 30. | | | | 11.78] 2 250% 1952 | 2 LPG" 25.5% F41 | 202 2 C-13 7- 11 3.5% 1909 || 2012619 70% 146 2260 260 27.5 1682 | 12260 28.0 1 | F2192] 28.0% 1842| 220 | 2483 | 74 0. | d5 A.0" | 15 16 0 8.5% 10 75 1237 1.314 12:31 12|| 11111224 1299 iP| | | 1-21 TEIN TATE || 1210 1274 1811 10. 171 1287 | 10 11 1269 125|| 1015 | || 12 13.7 130 1188 124 179 10 119 14112 10 11 125 1.264 | 1184 11 12 123 100 1 160 | 147 (155 Page 18 Present Value of Annuity $1.00 in Arrears 2.185 1.816 24502671 24302643 2106 18031 lele sale 786 1703079 BOGNI BOSS1031 1 213 1208 1754 81.0% 1.026 1.120 1,171 1199 2002 2 345 2324 2302 2 281 2 260 2.508 27483 2458 15 1.730 700 1707 1103 1 097 1.052 112 1.146 1.140 1.186 1.179 1.173 1.186 16521 85.5% 0.980 1071 1.110 1.141 1.9211 sallallSRBSBSalala 1620 0.974 1.0555 1.099 1.123 1.094 1.117 10 11111 88.OX 00051045 B85 89.0% 89.5% 0.967 0.963 1036 1 077 1.031 1.072 1.020 1038 10211081 22001 1.873 162 162 1.8351 1841 2220 222 1630 1.8081 2.106 2088 2229 39.0% 1.609 1.877 20702209 1.509 1.653 2052 2.188 1.589 1649 2.035 2.168 1.579 18362.018 2.148 1.589 18222.00125129 1,559 1800 1985 2 109 1549 179619002091 1 540 1 782 1953 2072 1530 1.7691937 2054 152117574192112038 1.512174411900 2010 1.502 1.732 1.890 2.000 1.493 17201 1876 1.663 1.48417071861 1966 1475 1.895 1846 1949 1832 1933 470X1458 1672 1.818 1917 47,5% 144010801804 1901 48 0% 14411649 1.790 1885 46N 1432 1638 1.778 1870 49.0% 1424 1627 1.763 1854 49.5% 141616161750 1.839 500X140718051737 1824 1099 1.093 1.087 1,082 1012 1.050 0.933 1.007 1.045 09930110021040 092810081035 1.071 1.065 1050 1054 SSSSSSSSSS 0.91812391025 1044 0.914 195410201039 0.9110.950 1015 1033 0.9070.975 1010 1.028 96 0% 0 903 0.971 1.000 1.023 98.5% 0 900 7 10011012 97.0% 0 890 09020 996 1013 97.5% 893 9 58 1902 1,008 98.0% 0880096409871003 98.65 0.8850 9600 902 1999 99.0% OB. 2 M 097801994 99 65878 0.942 073 0989 100 ONI 06875 09385 0984 If off the chart use 100%
