Percentage complete
30 % for conversion
Required : Calculate the equivalent units for materials for the month in the first processing department
2 . ( TCO B ) Madlem , Inc ., produces and sells a single product whose selling price is $ 240.00 per unit and whose variable expense is $ 86.40 per unit . The company ' s fixed expense is $ 720,384 per month .
Required : Determine the monthly break-even in either unit or total dollar sales . Show your work ! ( Points : 25 )
3 . ( TCO G ) ( Ignore income taxes in this problem .) Axillar Beauty Products Corporation is considering the production of a new conditioning shampoo that will require the purchase of new mixing machinery . The machinery will cost $ 375,000 , is expected to have a useful life of 10 years , and is expected to have a salvage value of $ 50,000 at the end of 10 years . The machinery will also need a $ 35,000 overhaul at the end of Year 6 . A $ 40,000 increase in working capital will be needed for this investment project . The working capital will be released at the end of the 10 years . The new shampoo is expected to generate net cash inflows of $ 85,000 per year for each of the 10 years . Axillar ' s discount rate is 16 %.
Required :
a . What is the net present value of this investment opportunity ?