Required information Exercise 15-32 Pricing, Advertising, and Special-Order Decisions (LO 15-10) [The fol/owing information applies to the questions displayed below. ] Corrientes Company produces a single product in its Buenos Aires plant that currently sells for 5.80 p per unit, Fixed costs are expected to amount to 57000 p for the year, and all variable manufacturing and administrative costs are expected to be incurred at a rate of 2.40 p per unit. Corrientes has two salespeople who are paid strictly on a commission basis. Their commission is 10 percent ofthe sales revenue they generate. (Ignore income taxes.) (p denotes the peso, Argentina's national currency, Many countries use the peso as their national currency, On the day this exercise was written, Argentina's peso was worth $0.104 US dollar.) Exercise 15-32 Part1 Required: 1. Suppose management alters its current plans by spending an additional amount of 4600 p on advertising and increases the selling price to 6.80 p per unit. Calculate the profit on 61,000 units. (Do not round intermediate calculations. Enter your answer in pesos.) Prot ,0 Exercise 17-21 Relative-Sales-Value Method; Joint Cost Allocation (LO 17-4) Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows: Quantity at Sales Price Joint Cost Cereal Split-Off Point per Kilogram $93, 000 Yummies 12, 300 kilograms $6.30 Crummies 8 , 300 kilograms 7.80 Required: Use the relative-sales-value method to allocate Breakfasttime Cereal Company's joint production cost between Yummies and Crummies. (Round intermediate calculations of Relative Proportions to 3 decimal places and final answers to the nearest dollar amount.) Sales Value at Allocation of Split-off Point Joint Cost Yummies Crummies TotalRequired information Exercise 15-32 Pricing, Advertising. and Special-Order Decisions (L0 15-10) [The following information applies to the questions displayed below] Corrientes Company produces a single product in its Buenos Aires plant that currently sells for 5.80 p per unit. Fixed costs are expected to amount to 57,000 p for the year, and all variable manufacturing and administrative costs are expected to be incurred at a rate of 240 p per unit. Corrientes has two salespeople who are paid strictly on a commission basis. Their commission is 10 percent ofthe sales revenue they generate. (Ignore income taxes.) (p denotes the peso, Argentina's national currency. Many countries use the peso as their national currency. On the day this exercise was written, Argentina's peso was worth $0,104 US. dollar.) Exercise 15-32 Part 2 2. The Sorde Company hasjust approached Corrientes to make a special one-time purchase of18,000 units. These units would not be sold by the sales personnel, and, therefore, no commission would have to be paid. What is the price Corrientes would have to charge oer unit on this special order to earn additional profit of 43,200 p? (Do not round intermediate calculations Round your answer to 2 decimal places. Enter your answer in pesos.) Sales price required I p per unit Exercise 16-24 Net Present Value (Section 1) (L0 16-1) Jack and Jill's Place is a nonprofit nursery school run by the parents ofthe enrolled children. Since the school is out oftown, it has a well rather than a city water supply. Lately, the well has become unreliable, and the school has had to bring in bottled drinking water. The school's governing board is considering drilling a new well (at the top of the hill, naturally). The board estimates that a new well would cost $2,950 and save the school $550 annually for 10 years. The school's hurdle rate is 8 percent. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required: Compute the new well's net present value. Should the governing board approve the new well? (Round your final answer to the nearest dollar amount.) Net present value Approve? Exercise 16-25 Internal Rate of Return (Section 1) (L0 16-1) Jack and Jill's Place is a nonprofit nursery school run by the parents of the enrolled children. Since the school is out oftown, it has a well rather than a city water supply. Lately, the well has become unreliable, and the school has had to bring in bottled drinking water. The school's governing board is considering drilling a new well (at the top of the hill, naturally). The board estimates that a new well would cost $3,842 and save the school $680 annually for 10 years. The school's hurdle rate is 7 percent. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required: Compute the internal rate of return on the new well. Should the governing board approve the new well? Internal rate of return Approve? Exercise 16-26 Internal Rate of Return; Uneven Cash Flows (Section 1) (L0 16-1) The trustees of the Danube School ofArt and Music, located in Tuttlihgen, Germany, are considering a major overhaul of the school's audio system. With or without the overhaul, the system will be replaced in two years. If an overhaul is done now, the trustees expect to save the following repair costs during the next two years: year 'I, 4,400 euros; year 2, 6,400 euros. The overhaul will cost 8,780 euros. (The euro is used in most European markets.) Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required: Use trial and error to compute the internal rate of return on the proposed overhaul. (Hint: The NPV of the overhaul is positive if an 10 aercent discount rate is used, but the NPV is negative if a 18 percent rate is used.) Internal rate of return %