Units of a tools component

Assignment Help Finance Basics
Reference no: EM131005288

Master Tools Ltd. Is currently operating its business at 75% level, producing 38275 units of a tools component and proposes to increase capacity utilization in the coming year by 33 1/3 % over the existing level of production.
The following data has been supplied:

(1)Unit cost structure of the product at current level:

Rs.
Raw Material 5
Wages 2
Overheads 3
Fixed Overhead 2
Profit 3
_____
15

(i) Raw Material will remain in stores for 1 month before issued for production. Material will remain in process for further 1 month. Suppliers grant 4 months credit to the company.

(ii) Finished goods remain in godown for 2 months

(iii) Debtors are allowed credit for 2 months.

(iv) Lag in wages and overheads payments in 1 month, and these expenses accrue evenly throughout the production cycle.

(v) No increase either in cost of inputs or selling price is envisaged

You are required to prepare a Projected Profitability statement and the Working Capital Requirement at new level, assuming that a minimum cash balance ofRs.20000 has to be maintained.

Reference no: EM131005288

Questions Cloud

Pair each item from list a with the item from list b : Listed below are several terms and phrases associated with leases. Pair each item from List A with the item from List B (by letter) that is most appropriately associated with it.
Annualized with semi-annual compounding : 1. Assume all rates are annualized with semi-annual compounding. Please be explicit about how you derive your results and round to four decimals after the comma.
How does the evolution of native american religions serve : How does the evolution of Native American religions serve as a microcosm for the religious adaptations that other immigrant groups would later make? Please be specific.
Determine the costs of preference shares : Flotation costs are expected to be 5 per cent; these costs can be amortized for tax purpose during 8 years at a uniform rate. The corporate tax rate is 35 per cent. Determine the costs of preference shares from the perspective of the subsidiary
Units of a tools component : Master Tools Ltd. Is currently operating its business at 75% level, producing 38275 units of a tools component and proposes to increase capacity utilization in the coming year by 33 1/3 % over the existing level of production.
Signal immediately leased the plane back : The lease requires Signal to make payments of $102,771 to the finance company each January 1. Signal depreciates assets on a straight-line basis. The lease has an implicit rate of 11%.
What is richard becks case against william james : Critical evaluation of who I agree with and why. (Freud, Beck or James)
Expected return on the market : The Covariance between these two stocks is -.001. The expected return on the market is .15 with a standard deviation of .15. The risk free rate is .03. You can borrow and lend at this risk free rate.
Determine the value of the given integral directly : Determine the value of the integral directly. the trapezoidal rule estimate for n = 4. an upper bound for |ET|. the upper bound for |ET| as a percentage of the integral's true value.

Reviews

Write a Review

Finance Basics Questions & Answers

  Important dimensions of quality

Imagining yourself to be the customer, construct a House of Quality to provide the organization with your perspectives on what the important dimensions of quality are and how well the organization is currently meeting your needs.

  Calculate the number of shares outstanding at the end of

company x has 100 shares outstanding. it earns 1000 per year and announces that it will use all 1000 to repurchase its

  What four statements are contained in most annual reports

If a "typical" firm reports $20 million of retained earning on its balance sheet, could its directors declare a $20 million cash dividend without any qualms whatsoever?

  What happens to the present value factor as discount rate

What happens to the present value factor as our discount rate or interest rate increases for a given time period?

  An investment project has annual cash inflows of 5000 5500

an investment project has annual cash inflows of 5000 5500 6000 amp 7000. and a discount rate of 14 . what is the

  Can you share an example of an internal control

What are some internal controls in place at your organization? Can you share an example of an internal control failure at your organization? Why did this failure occur?

  Offer 1- 500000 now plus 120000 for the end of year 6-15

ms. cleanair recived three offers from major automobile companies for her patent on a new hybrid drive system for

  What will occur to margin account of investor who holds one

the margin requirement on the samppasx 200 futures contract is 10 and the stock index is currently 4400. each contract

  A particular securitys default risk premium is 3 percent

a particular securitys default risk premium is 3 percent. for all securities the inflation risk premium is 2 percent

  Determine one 1 significant benefit to an organization that

leasing equipmentnbsp please respond to the followingsuggest one 1 key economic factor that motivates leasing as an

  The bonds make semiannual coupon payments at a rate of 84

trevor price bought 10-year bonds issued by harvest foods five years ago for 1004.19. the bonds make semiannual coupon

  Valuation of the bond

You need to present to your client, Alice Cartwright, some investment options for her to choose from. Her choices are between the following 2 bonds:

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd