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Please help with filling in the x's in the chart provided on the bottom. Info to help is in description. Task 7: Alisyn has recommended
Please help with filling in the x's in the chart provided on the bottom. Info to help is in description.
Task 7: Alisyn has recommended the purchase of a new machine that will improve RBI's production process in manufacturing higher quality skate wheels from improved material. As a result, she has asked you to do the analysis and show the differences between now and the future with the new machine. This new skate wheel machine costs $750,000 and is scheduled to arrive at the beginning of Q2. It will be placed in production at the beginning of Q3. RBI arranged to finance the entire cost of this equipment at a 6 percent annual interest rate for 5 years with quarterly payments. Once the equipment is placed in operation, the Raw Materials cost will decrease by 3 percent in Q3 and by 4 percent in Q4. Direct Labor percent also is affected and will decrease by 1% in Q3 and 3% in Q4. Alisyn wants you to create a new worksheet that you title New Equipment Analysis. Copy the entire Operations worksheet into the "New Equipment Analysis worksheet. Change the title of the 2nd row to Projected Statement of Operations New Equipment Analysis. Change the background color to something other than red. Add the New Equipment Assumptions area below (Figure 4) to the bottom of the Key Assumptions area. You should leave 2 blank rows in between. Alisyn has described the required calculations for the New Equipment Assumptions area in Figure 5. Replace the x's with the approp information from the above paragraphs and using the information in Figure 5. They are to be formatted the same as you see in Figure 4. x% New Equipment Assumptions Equipment Cost Annual Interest Rate Loan Term in Years Loan Payment Amount (calculate) Raw Material Savings Direct Labor Savings Q1 Q2 Q3 Q4 0 $xxx, xxx 0 0 x% x% x% X X X X 0 $xx,xxx Sxx,xxx xx.xxx 0 0 x% x% 0 0 x% x%Step by Step Solution
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