Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Should the company purchase a new kiln?RPW is considering purchasing a new kiln. It currently operates two kilns, each of which can process $10,000 worth of pottery per firing. The company received a quote of $500,000 for the materials to build a new kiln and the space to house it. Costs to erect the kiln, build the necessary additional space, and pre- pare it for production are projected at an additional $250,000. A new kiln will take one year to prepare for production.
RPW will have to finance the kiln with debt. The company's current interest rate is 10% (2% over prime). RPW's bank is reluctant to make such a large loan given RPW's current financial position. However, the bank believes it may be able to put together a group of area banks to finance the kiln with a 13% fixed rate loan requiring annual payments over five years. RPW estimates its required rate of return at 15% for this project.The expected life of a kiln is seven years after which a major overhaul will be necessary. The kiln and additional space will be essentially worthless without the major overhaul. Assuming the kiln is fired twice a week, 50 weeks a year, with an average firing producing $10,000 worth of product (in sales dollars), the kiln would increase sales capacity $1,000,000. The company expects it could sell half of this increase in the first year with additional increases of $100,000 per year afterward. RPW estimates the cost to produce goods with a new kiln excluding depreciation at 45% of sales. Current marketing related costs average 20% of sales. RPW expects marketing expense to remain 20% on the additional sales because variable sell- ing expenses will increase, but fixed marketing expense will be spread over more sales. Administrative and general expenses should be unaffected by adding a new kiln.
jackie thomas has been elected to handle the local basketball game. the game is put on by a nonprofit organization that
1. which of the following is not a component of net periodic pension cost?a. interest costb. actual return on plan
Sears issues bonds with a par value of $138,000 on January 1, 2009. The bond' annual contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance..
the adjusted trial balance for holly corporation at the end of 2014 contained the following accountsbonds payable 10
Briefly state the principal activities of the business and how those differ from the activities undertaken by its close competitors in the industry and what are the significant changes in the activities of the company that have occurred since last ..
william manufacturing company began implementing a just-in-time inventory system several months ago. the production and
following are examples of control deficiencies that may represent significant deficiencies or material weaknesses. for
pdf corp. needs to replace an old lathe with a new more efficient model. the old lathe was purchased for 50000 nine
sibble corporation is considering the purchase of a machine that would cost 370000 and would last for 5 years. at the
in 2008 rebecca received a gift of stock worth 25000. the donors adjusted basis was 20000. the donor originally
barnes company manufactured 6000 units of a component part that is used in its product and incurred the following costs
1 the buyer who purchases and takes ownership of anothercompanys accounts receivable is called aa payerb pledgorc
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd