Hiteck corporation plans to manufacture and sell satellite dishes.
Based on the company's experience with other products that required similar
amounts of direct labor, management believes that an 80% cumulative
average-time learning model applies to the production process used to
manufacturing this new product. This variable costs of producing the
first unit were estimated as:
Direct materials $100
Direct manufacturing labor (100 labor-hour*$10/hr) 1,000
Variable manufacturing overhead (100 labor-hour*$5/hr) 500
Total $1,600
Variable manufacturing overhead is assigned to products at a rate of $5
per direct-labor hour. Hiteck has an order of 16 dishes, which are to
be delivered 8 units each for next two years. No additional investment
in equipment will be needed if Hiteck manufactures the 16 dishes. Hiteck
sets selling price at 120% of average variable manufacturing costs for
the contract. Hiteck's required rate of return is 10% per year.
(Note:ln(2)=0.6931,ln(5)=1.6094)
Required:
1.Assuming that production costs incur at the beginning of a year but that
Hiteck gets paid at year ends when products are delivered, determine
the net present value of the contract.
2.Would you recommend Hiteck to sign this contract? Briefly state your
reasons.
看到題目不知道從哪裡著手0.0
知道是學習曲線的題目 好像也有折現的問題
第一題答案是$472.33
以上
--
Based on the company's experience with other products that required similar
amounts of direct labor, management believes that an 80% cumulative
average-time learning model applies to the production process used to
manufacturing this new product. This variable costs of producing the
first unit were estimated as:
Direct materials $100
Direct manufacturing labor (100 labor-hour*$10/hr) 1,000
Variable manufacturing overhead (100 labor-hour*$5/hr) 500
Total $1,600
Variable manufacturing overhead is assigned to products at a rate of $5
per direct-labor hour. Hiteck has an order of 16 dishes, which are to
be delivered 8 units each for next two years. No additional investment
in equipment will be needed if Hiteck manufactures the 16 dishes. Hiteck
sets selling price at 120% of average variable manufacturing costs for
the contract. Hiteck's required rate of return is 10% per year.
(Note:ln(2)=0.6931,ln(5)=1.6094)
Required:
1.Assuming that production costs incur at the beginning of a year but that
Hiteck gets paid at year ends when products are delivered, determine
the net present value of the contract.
2.Would you recommend Hiteck to sign this contract? Briefly state your
reasons.
看到題目不知道從哪裡著手0.0
知道是學習曲線的題目 好像也有折現的問題
第一題答案是$472.33
以上
--
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