Please answer the seven accounting questions attached.

Badger Valve and Fitting Company, located in southern Wisconsin, manufactures a variety of industrial va Direct material $ Direct labor 11.5 Manufacturing overhead Total product cost 10 15 $ 36.5 Manufacturing overhead is applied to production at the rate of $25 per standard direct-labor hour. This ov Variable manufacturing overhead $ 8 Fixed manufacturing overhead (traceable) 12 Fixed manufacturing overhead (allocated) 5 Applied manufacturing overhead rate $ 25 Additional costs incurred in connection with sales of the pressure valve include sales commissions of 5 pe Required: 1. Determine how many direct-labor hours would be required each month to fill the Glasgow Industries or Direct-labor hours es a variety of industrial valves and pipe fittings that are sold to customers in nearby states. Currently, the company is operating d direct-labor hour. This overhead rate is made up of the following components. sales commissions of 5 percent and freight expense of $1.50 per unit. However, the company does not pay sales commissions the Glasgow Industries order. ly, the company is operating at about 70 percent capacity and is earning a satisfactory return on investment. Management has not pay sales commissions on special orders that come directly to management. In determining selling prices, Badger adds a 4 stment. Management has been approached by Glasgow Industries Ltd. of Scotland with an offer to buy 160,000 units of a pres ing prices, Badger adds a 40 percent markup to total product cost. This provides a $51.10 suggested selling price for the press buy 160,000 units of a pressure valve. Glasgow Industries manufactures a valve that is almost identical to Badger's pressure va d selling price for the pressure valve. The Marketing Department, however, has set the current selling price at $49.60 in order to cal to Badger's pressure valve; however, a fire in Glasgow Industries' valve plant has shut down its manufacturing operations. G g price at $49.60 in order to maintain market share. Production management believes that it can handle the Glasgow Industries manufacturing operations. Glasgow needs the 160,000 valves over the next four months to meet commitments to its regular cus ndle the Glasgow Industries order without disrupting its scheduled production. The order would, however, require additional fixed mmitments to its regular customers. Glasgow is prepared to pay $35.00 each for the valves. Badger's total product cost, based ever, require additional fixed factory overhead of $20,000 per month in the form of supervision and clerical costs. If managemen s total product cost, based on current attainable standards, for the pressure valve is $36.50, calculated as follows: erical costs. If management accepts the order, 40,000 pressure valves will be manufactured and shipped to Glasgow Industries ed as follows: pped to Glasgow Industries each month for the next four months. Glasgow's management has agreed to pay the shipping char ed to pay the shipping charges for the valves. Badger Valve and Fitting Company, located in southern Wisconsin, manufactures a variety of industria Direct material $ Direct labor 11.5 Manufacturing overhead Total product cost 10 15 $ 36.5 Manufacturing overhead is applied to production at the rate of $25 per standard direct-labor hour. This Variable manufacturing overhead $ 8 Fixed manufacturing overhead (traceable) 12 Fixed manufacturing overhead (allocated) 5 Applied manufacturing overhead rate $ 25 Additional costs incurred in connection with sales of the pressure valve include sales commissions of 2. Prepare an analysis showing the impact of accepting the Glasgow Industries order. (Round "Per u Per Unit Incremental revenue Incremental costs: Variable costs: Direct material Direct labor Variable overhead Total variable costs Totals for 160,000 units Fixed overhead: Supervisory and clerical costs Total incremental costs Total incremental profit es a variety of industrial valves and pipe fittings that are sold to customers in nearby states. Currently, the company is opera direct-labor hour. This overhead rate is made up of the following components. sales commissions of 5 percent and freight expense of $1.50 per unit. However, the company does not pay sales commissio order. (Round "Per unit" answers to 2 decimal y, the company is operating at about 70 percent capacity and is earning a satisfactory return on investment. Management ha not pay sales commissions on special orders that come directly to management. In determining selling prices, Badger adds stment. Management has been approached by Glasgow Industries Ltd. of Scotland with an offer to buy 160,000 units of a pr ng prices, Badger adds a 40 percent markup to total product cost. This provides a $51.10 suggested selling price for the pre uy 160,000 units of a pressure valve. Glasgow Industries manufactures a valve that is almost identical to Badger's pressure selling price for the pressure valve. The Marketing Department, however, has set the current selling price at $49.60 in orde al to Badger's pressure valve; however, a fire in Glasgow Industries' valve plant has shut down its manufacturing operations price at $49.60 in order to maintain market share. Production management believes that it can handle the Glasgow Industr anufacturing operations. Glasgow needs the 160,000 valves over the next four months to meet commitments to its regular c dle the Glasgow Industries order without disrupting its scheduled production. The order would, however, require additional fix mitments to its regular customers. Glasgow is prepared to pay $35.00 each for the valves. Badger's total product cost, base ver, require additional fixed factory overhead of $20,000 per month in the form of supervision and clerical costs. If managem total product cost, based on current attainable standards, for the pressure valve is $36.50, calculated as follows: erical costs. If management accepts the order, 40,000 pressure valves will be manufactured and shipped to Glasgow Industr d as follows: ped to Glasgow Industries each month for the next four months. Glasgow's management has agreed to pay the shipping ch d to pay the shipping charges for the valves. Badger Valve and Fitting Company, located in southern Wisconsin, manufactures a variety of industria Direct material $ Direct labor 11.5 Manufacturing overhead Total product cost 10 15 $ 36.5 Manufacturing overhead is applied to production at the rate of $25 per standard direct-labor hour. This Variable manufacturing overhead $ 8 Fixed manufacturing overhead (traceable) 12 Fixed manufacturing overhead (allocated) 5 Applied manufacturin g overhead rate $ 25 Additional costs incurred in connection with sales of the pressure valve include sales commissions of 3. Calculate the minimum unit price that Badger Valve and Fitting Company's management could acce Minimum unit price ures a variety of industrial valves and pipe fittings that are sold to customers in nearby states. Currently, the company is ope rd direct-labor hour. This overhead rate is made up of the following components. e sales commissions of 5 percent and freight expense of $1.50 per unit. However, the company does not pay sales commis management could accept for the Glasgow Industries order without reducing net income. (Round your answer to 2 decim ntly, the company is operating at about 70 percent capacity and is earning a satisfactory return on investment. Management s not pay sales commissions on special orders that come directly to management. In determining selling prices, Badger add our answer to 2 decimal places.) vestment. Management has been approached by Glasgow Industries Ltd. of Scotland with an offer to buy 160,000 units of a lling prices, Badger adds a 40 percent markup to total product cost. This provides a $51.10 suggested selling price for the p buy 160,000 units of a pressure valve. Glasgow Industries manufactures a valve that is almost identical to Badger's pressu ed selling price for the pressure valve. The Marketing Department, however, has set the current selling price at $49.60 in or tical to Badger's pressure valve; however, a fire in Glasgow Industries' valve plant has shut down its manufacturing operatio ng price at $49.60 in order to maintain market share. Production management believes that it can handle the Glasgow Indu manufacturing operations. Glasgow needs the 160,000 valves over the next four months to meet commitments to its regula andle the Glasgow Industries order without disrupting its scheduled production. The order would, however, require additiona ommitments to its regular customers. Glasgow is prepared to pay $35.00 each for the valves. Badger's total product cost, ba wever, require additional fixed factory overhead of $20,000 per month in the form of supervision and clerical costs. If manage r's total product cost, based on current attainable standards, for the pressure valve is $36.50, calculated as follows: clerical costs. If management accepts the order, 40,000 pressure valves will be manufactured and shipped to Glasgow Indu ated as follows: hipped to Glasgow Industries each month for the next four months. Glasgow's management has agreed to pay the shipping eed to pay the shipping charges for the valves. Badger Valve and Fitting Company, located in southern Wisconsin, manufactures a variety of industria Direct material $ Direct labor 11.5 Manufacturing overhead Total product cost 10 15 $ 36.5 Manufacturing overhead is applied to production at the rate of $25 per standard direct-labor hour. This Variable manufacturing overhead $ 8 Fixed manufacturing overhead (traceable) 12 Fixed manufacturing overhead (allocated) 5 Applied manufacturi ng overhead rate $ 25 Additional costs incurred in connection with sales of the pressure valve include sales commissions of 4. Identify the factors, other than price, that Badger's management should Management composition of Glasgow Industries. The company's relevant range of activity and whether or not the special order will cause volume to exceed this ra Other possible production orders that could come in and require the capacity allocated to the Glasgow job. Sales volume of Glasgow Industries. The effect on machinery or the scheduled maintenance of equipment. The effect of the special order on Badger's sales at regular prices. The possibility of future sales to Glasgow Industries and the effects of participating in the international marketpla tures a variety of industrial valves and pipe fittings that are sold to customers in nearby states. Currently, the company is op ard direct-labor hour. This overhead rate is made up of the following components. de sales commissions of 5 percent and freight expense of $1.50 per unit. However, the company does not pay sales comm anagement should consider before accepting the Glasgow Industries order. (You may sele e volume to exceed this range. to the Glasgow job. he international marketplace. ently, the company is operating at about 70 percent capacity and is earning a satisfactory return on investment. Managemen es not pay sales commissions on special orders that come directly to management. In determining selling prices, Badger ad er. (You may select more than one answer. Please highlight or bold the correct answer(s). nvestment. Management has been approached by Glasgow Industries Ltd. of Scotland with an offer to buy 160,000 units of elling prices, Badger adds a 40 percent markup to total product cost. This provides a $51.10 suggested selling price for the orrect answer(s).) o buy 160,000 units of a pressure valve. Glasgow Industries manufactures a valve that is almost identical to Badger's press ted selling price for the pressure valve. The Marketing Department, however, has set the current selling price at $49.60 in o ntical to Badger's pressure valve; however, a fire in Glasgow Industries' valve plant has shut down its manufacturing operat ling price at $49.60 in order to maintain market share. Production management believes that it can handle the Glasgow Indu s manufacturing operations. Glasgow needs the 160,000 valves over the next four months to meet commitments to its regu handle the Glasgow Industries order without disrupting its scheduled production. The order would, however, require addition commitments to its regular customers. Glasgow is prepared to pay $35.00 each for the valves. Badger's total product cost, b owever, require additional fixed factory overhead of $20,000 per month in the form of supervision and clerical costs. If manag er's total product cost, based on current attainable standards, for the pressure valve is $36.50, calculated as follows: d clerical costs. If management accepts the order, 40,000 pressure valves will be manufactured and shipped to Glasgow Ind lated as follows: shipped to Glasgow Industries each month for the next four months. Glasgow's management has agreed to pay the shipping reed to pay the shipping charges for the valves. MPE, Inc. will soon enter a very competitive marketplace in which it will have limited influence over the Hours of service to be provided: 21,000 Anticipated variable cost per service hour: $21.70 Anticipated fixed cost: $1,900,000 per year 2. How much profit must MPE generate in the first year to achieve a(n) 10 percent return? Target profit have limited influence over the prices that are charged. Management and consultants are currently working to fine-tune the 10 percent return? working to fine-tune the company's sole service, which hopefully will generate a 10 percent first-year return (profit) on the fir return (profit) on the firm's $17,500,000 asset investment. Although the normal return in MPE's industry is 12 percent, exec ustry is 12 percent, executives are willing to accept the lower figure because of various start-up inefficiencies. The following i ciencies. The following information is available for first-year operations: MPE, Inc. will soon enter a very competitive marketplace in which it will have limited influence over the Hours of service to be provided: 21,000 Anticipated variable cost per service hour: $21.70 Anticipated fixed cost: $1,900,000 per year 3. Calculate the revenue per hour that MPE must generate in the first year to achieve a(n) 10 percent Revenue per hour imited influence over the prices that are charged. Management and consultants are currently working to fine-tune the comp achieve a(n) 10 percent return. (Round your answer to 2 decimal places.) g to fine-tune the company's sole service, which hopefully will generate a 10 percent first-year return (profit) on the firm's $1 (profit) on the firm's $17,500,000 asset investment. Although the normal return in MPE's industry is 12 percent, executives 12 percent, executives are willing to accept the lower figure because of various start-up inefficiencies. The following informa s. The following information is available for first-year operations: MPE, Inc. will soon enter a very competitive marketplace in which it will have limited influence over the Hours of service to be provided: 21,000 Anticipated variable cost per service hour: $21.70 Anticipated fixed cost: $1,900,000 per year 4. Assume that prior to the start of business in year 1, management conducted a planning exercise to a. How much profit must MPE generate in the second year to achieve a 12 percent return? b. Calculate the revenue per hour that MPE must generate in the second year to achieve a 12 percen c. Can the company achieve this return? How much profit must MPE generate in the second year to achieve a 12 percent return? Target profit Calculate the revenue per hour that MPE must generate in the second year to achieve a 12 percent return. (R Revenue per hour ve limited influence over the prices that are charged. Management and consultants are currently working to fine-tune the co cted a planning exercise to determine if MPE could attain a(n) 12 percent return in year 2. If the competitive pressures dicta 2 percent return? year to achieve a 12 percent return. eve a 12 percent return. (Round your answer to 2 decimal places.) king to fine-tune the company's sole service, which hopefully will generate a 10 percent first-year return (profit) on the firm's mpetitive pressures dictate a maximum selling price of $197 per hour and service hours and the variable cost per service hou urn (profit) on the firm's $17,500,000 asset investment. Although the normal return in MPE's industry is 12 percent, executiv ble cost per service hour are the same as the amounts anticipated in year 1, calculate the following amounts to determine if y is 12 percent, executives are willing to accept the lower figure because of various start-up inefficiencies. The following info amounts to determine if this return can be achieved. ncies. The following information is available for first-year operations: Badger Valve and Fitting Company, located in southern Wisconsin, manufactures a variety of industrial valves and pipe fittings that are sold to customers in nearby states. Currently, the company is operating at about 70 percent capacity and is earning a satisfactory return on investment. Management has been approached by Glasgow Industries Ltd. of Scotland with an offer to buy 160,000 units of a pressure valve. Glasgow Industries manufactures a valve that is almost identical to Badger's pressure valve; however, a fire in Glasgow Industries' valve plant has shut down its manufacturing operations. Glasgow needs the 160,000 valves over the next four months to meet commitments to its regular customers. Glasgow is prepared to pay $35.00 each for the valves. Badger's total product cost, based on current attainable standards, for the pressure valve is $36.50, calculated as follows: Direct material $ Direct labor 11.5 Manufacturing overhead Total product cost 10 15 $ 36.5 Manufacturing overhead is applied to production at the rate of $25 per standard direct-labor hour. This ov Variable manufacturing overhead $ 8 Fixed manufacturing overhead (traceable) 12 Fixed manufacturing overhead (allocated) 5 Applied manufacturing overhead rate $ 25 Additional costs incurred in connection with sales of the pressure valve include sales commissions of 5 percent and freight expense of $1.50 per unit. However, the company does not pay sales commissions on special orders that com directly to management. In determining selling prices, Badger adds a 40 percent markup to total product cost. This provides a $51.10 suggested selling price for the pressure valve. The Marketing Department, however, has set the current selling price at $49.60 in order to maintain market share. Production management believes that it can handle Additional costs incurred in connection with sales of the pressure valve include sales commissions of 5 percent and freight expense of $1.50 per unit. However, the company does not pay sales commissions on special orders that com directly to management. In determining selling prices, Badger adds a 40 percent markup to total product cost. This provides a $51.10 suggested selling price for the pressure valve. The Marketing Department, however, has set the current selling price at $49.60 in order to maintain market share. Production management believes that it can handle the Glasgow Industries order without disrupting its scheduled production. The order would, however, require addition fixed factory overhead of $20,000 per month in the form of supervision and clerical costs. If management accepts th order, 40,000 pressure valves will be manufactured and shipped to Glasgow Industries each month for the next four months. Glasgow's management has agreed to pay the shipping charges for the valves. Required: 1. Determine how many direct-labor hours would be required each month to fill the Glasgow Industries or Direct-labor hours 24000 Manufacturing overhead rate = Manufacturing overhead per pr Time : 25 15 0.600 hour So, direct labor hours = 24000 hours d direct-labor hour. This overhead rate is made up of the following components. missions of 5 percent and s on special orders that come o total product cost. This ent, however, has set the believes that it can handle the Glasgow Industries order. Badger Valve and Fitting Company, located in southern Wisconsin, manufactures a variety of industrial valves and pipe fittings that are sold to customers in nearby states. Currently, the company is operating at about 70 percent capacity and is earning a satisfactory return on investment. Management has been approached by Glasgow Industries Ltd. of Scotland with an offer to buy 160,000 units of a pressure valve. Glasgow Industries manufactures a valve that is almost identical to Badger's pressure valve; however, a fire in Glasgow Industries' valve plant has shut down its manufacturing operations. Glasgow needs the 160,000 valves over the next four months to meet commitments to its regular customers. Glasgow is prepared to pay $35.00 each for the valves. Badger's total product cost, based on current attainable standards, for the pressure valve is $36.50, calculated as follows: Direct material $ Direct labor 11.5 Manufacturing overhead Total product cost 10 15 $ 36.5 Manufacturing overhead is applied to production at the rate of $25 per standard direct-labor hour. This Variable manufacturing overhead $ 8 Fixed manufacturing overhead (traceable) 12 Fixed manufacturing overhead (allocated) 5 Applied manufacturing overhead rate $ 25 Additional costs incurred in connection with sales of the pressure valve include sales commissions of 5 percen freight expense of $1.50 per unit. However, the company does not pay sales commissions on special orders tha directly to management. In determining selling prices, Badger adds a 40 percent markup to total product cost provides a $51.10 suggested selling price for the pressure valve. The Marketing Department, however, has se current selling price at $49.60 in order to maintain market share. Production management believes that it can ha Glasgow Industries order without disrupting its scheduled production. The order would, however, require addition factory overhead of $20,000 per month in the form of supervision and clerical costs. If management accepts the 40,000 pressure valves will be manufactured and shipped to Glasgow Industries each month for the next four m Glasgow's management has agreed to pay the shipping charges for the valves. 2. Prepare an analysis showing the impact of accepting the Glasgow Industries order. (Round "Per u Per Unit Incremental revenue Incremental costs: Variable costs: Direct material Direct labor Variable overhead Total variable costs Fixed overhead: Supervisory and clerical costs Total incremental costs Total incremental profit 35 Totals for 160,000 units 5600000 10 11.5 8 29.5 1600000 1840000 1280000 4720000 20000 80000 4800000 800000 of industrial valves rating at about 70 n approached by Glasgow Industries Glasgow Industries' s over the next four each for the valves. s $36.50, calculated direct-labor hour. This overhead rate is made up of the following components. mmissions of 5 percent and s on special orders that come p to total product cost. This ment, however, has set the believes that it can handle the wever, require additional fixed nagement accepts the order, onth for the next four months. he valves. order. (Round "Per unit" answers to 2 decimal Badger Valve and Fitting Company, located in southern Wisconsin, manufactures a variety of industria Direct material $ Direct labor 11.5 Manufacturing overhead Total product cost 10 15 $ 36.5 Manufacturing overhead is applied to production at the rate of $25 per standard direct-labor hour. This Variable manufacturing overhead $ 8 Fixed manufacturing overhead (traceable) 12 Fixed manufacturing overhead (allocated) 5 Applied manufacturin g overhead rate $ 25 Additional costs incurred in connection with sales of the pressure valve include sales commissions of 3. Calculate the minimum unit price that Badger Valve and Fitting Company's management could acce Minimum unit price 26.00 Variable unit cost Direct materials Direct labor Variable support Additional fixed cost Minimum unit cost 10 11.5 4 0.5 26.00 ures a variety of industrial valves and pipe fittings that are sold to customers in nearby states. Currently, the company is ope rd direct-labor hour. This overhead rate is made up of the following components. e sales commissions of 5 percent and freight expense of $1.50 per unit. However, the company does not pay sales commis management could accept for the Glasgow Industries order without reducing net income. (Round your answer to 2 decim ntly, the company is operating at about 70 percent capacity and is earning a satisfactory return on investment. Management s not pay sales commissions on special orders that come directly to management. In determining selling prices, Badger add our answer to 2 decimal places.) vestment. Management has been approached by Glasgow Industries Ltd. of Scotland with an offer to buy 160,000 units of a lling prices, Badger adds a 40 percent markup to total product cost. This provides a $51.10 suggested selling price for the p buy 160,000 units of a pressure valve. Glasgow Industries manufactures a valve that is almost identical to Badger's pressu ed selling price for the pressure valve. The Marketing Department, however, has set the current selling price at $49.60 in or tical to Badger's pressure valve; however, a fire in Glasgow Industries' valve plant has shut down its manufacturing operatio ng price at $49.60 in order to maintain market share. Production management believes that it can handle the Glasgow Indu manufacturing operations. Glasgow needs the 160,000 valves over the next four months to meet commitments to its regula andle the Glasgow Industries order without disrupting its scheduled production. The order would, however, require additiona ommitments to its regular customers. Glasgow is prepared to pay $35.00 each for the valves. Badger's total product cost, ba wever, require additional fixed factory overhead of $20,000 per month in the form of supervision and clerical costs. If manage r's total product cost, based on current attainable standards, for the pressure valve is $36.50, calculated as follows: clerical costs. If management accepts the order, 40,000 pressure valves will be manufactured and shipped to Glasgow Indu ated as follows: hipped to Glasgow Industries each month for the next four months. Glasgow's management has agreed to pay the shipping eed to pay the shipping charges for the valves. Badger Valve and Fitting Company, located in southern Wisconsin, manufactures a variety of industria Direct material $ Direct labor 11.5 Manufacturing overhead Total product cost 10 15 $ 36.5 Manufacturing overhead is applied to production at the rate of $25 per standard direct-labor hour. This Variable manufacturing overhead $ 8 Fixed manufacturing overhead (traceable) 12 Fixed manufacturing overhead (allocated) 5 Applied manufacturi ng overhead rate $ 25 Additional costs incurred in connection with sales of the pressure valve include sales commissions of 4. Identify the factors, other than price, that Badger's management should Management composition of Glasgow Industries. The company's relevant range of activity and whether or not the special order will cause volume to excee Other possible production orders that could come in and require the capacity allocated to the Glasgow job. Sales volume of Glasgow Industries. The effect on machinery or the scheduled maintenance of equipment. The effect of the special order on Badger's sales at regular prices. The possibility of future sales to Glasgow Industries and the effects of participating in the international m tures a variety of industrial valves and pipe fittings that are sold to customers in nearby states. Currently, the company is op ard direct-labor hour. This overhead rate is made up of the following components. de sales commissions of 5 percent and freight expense of $1.50 per unit. However, the company does not pay sales comm anagement should consider before accepting the Glasgow Industries order. (You may sele l cause volume to exceed this range. to the Glasgow job. ng in the international marketplace. ently, the company is operating at about 70 percent capacity and is earning a satisfactory return on investment. Managemen es not pay sales commissions on special orders that come directly to management. In determining selling prices, Badger ad er. (You may select more than one answer. Please highlight or bold the correct answer(s). nvestment. Management has been approached by Glasgow Industries Ltd. of Scotland with an offer to buy 160,000 units of elling prices, Badger adds a 40 percent markup to total product cost. This provides a $51.10 suggested selling price for the orrect answer(s).) o buy 160,000 units of a pressure valve. Glasgow Industries manufactures a valve that is almost identical to Badger's press ted selling price for the pressure valve. The Marketing Department, however, has set the current selling price at $49.60 in o ntical to Badger's pressure valve; however, a fire in Glasgow Industries' valve plant has shut down its manufacturing operat ling price at $49.60 in order to maintain market share. Production management believes that it can handle the Glasgow Indu s manufacturing operations. Glasgow needs the 160,000 valves over the next four months to meet commitments to its regu handle the Glasgow Industries order without disrupting its scheduled production. The order would, however, require addition commitments to its regular customers. Glasgow is prepared to pay $35.00 each for the valves. Badger's total product cost, b owever, require additional fixed factory overhead of $20,000 per month in the form of supervision and clerical costs. If manag er's total product cost, based on current attainable standards, for the pressure valve is $36.50, calculated as follows: d clerical costs. If management accepts the order, 40,000 pressure valves will be manufactured and shipped to Glasgow Ind lated as follows: shipped to Glasgow Industries each month for the next four months. Glasgow's management has agreed to pay the shipping reed to pay the shipping charges for the valves. MPE, Inc. will soon enter a very competitive marketplace in which it will have limited influence over the prices that are charged. Management and consultants are currently working to fine-tune the company's sole service, which hopefully will generate a 10 percent first-year return (profit) on the firm's $17,500,000 asset investment. Although the normal return in MPE's industry is 12 percent, executives are willing to accept the lower figure because of various start-up inefficiencies. The following information is available for first-year operations: Hours of service to be provided: 21,000 Anticipated variable cost per service hour: $21.70 Anticipated fixed cost: $1,900,000 per year 2. How much profit must MPE generate in the first year to achieve a(n) 10 percent return? Target profit Taregt profit = 1750000 Asset investment * rate of return ed influence over the prices the company's sole service, 7,500,000 asset investment. to accept the lower figure r first-year operations: 10 percent return? MPE, Inc. will soon enter a very competitive marketplace in which it will have limited influence over the prices that are charged. Management and consultants are currently working to fine-tune the company's sole service, which hopefully will generate a 10 percent first-year return (profit) on the firm's $17,500,000 asset investment. Although the normal return in MPE's industry is 12 percent, executives are willing to accept the lower figure because of various start-up inefficiencies. The following information is available for first-year operations: Hours of service to be provided: 21,000 Anticipated variable cost per service hour: $21.70 Anticipated fixed cost: $1,900,000 per year 3. Calculate the revenue per hour that MPE must generate in the first year to achieve a(n) 10 percent Revenue per hour Target profit Variable cost Fixed cost 195.51 1750000 455700 1900000 achieve a(n) 10 percent return. (Round your answer to 2 decimal places.) MPE, Inc. will soon enter a very competitive marketplace in which it will have limited influence over the prices that are charged. Management and consultants are currently working to fine-tune the company's sole service, which hopefully will generate a 10 percent first-year return (profit) on the firm's $17,500,000 asset investment. Although the normal return in MPE's industry is 12 percent, executives are willing to accept the lower figure because of various start-up inefficiencies. The following information is available for first-year operations: Hours of service to be provided: 21,000 Anticipated variable cost per service hour: $21.70 Anticipated fixed cost: $1,900,000 per year 4. Assume that prior to the start of business in year 1, management conducted a planning exercise to a. How much profit must MPE generate in the second year to achieve a 12 percent return? b. Calculate the revenue per hour that MPE must generate in the second year to achieve a 12 percen c. Can the company achieve this return? How much profit must MPE generate in the second year to achieve a 12 percent return? Target profit 2100000 Calculate the revenue per hour that MPE must generate in the second year to achieve a 12 percent return. (R Revenue per hour Target profit Variable cost Fixed cost 212.18 2100000 455700 1900000 cted a planning exercise to determine if MPE could attain a(n) 12 percent return in year 2. If the competitive pressures dicta 2 percent return? year to achieve a 12 percent return. eve a 12 percent return. (Round your answer to 2 decimal places.) mpetitive pressures dictate a maximum selling price of $197 per hour and service hours and the variable cost per service hou ble cost per service hour are the same as the amounts anticipated in year 1, calculate the following amounts to determine if amounts to determine if this return can be achieved