(a) The electronic meters are useful for measuring temperature, pressure, and noise. The costs associated with manufactu
Posted: Fri Jul 01, 2022 8:13 am
- A The Electronic Meters Are Useful For Measuring Temperature Pressure And Noise The Costs Associated With Manufactu 1 (428.57 KiB) Viewed 44 times
(a) The electronic meters are useful for measuring temperature, pressure, and noise. The costs associated with manufacturing are salary of top management $20,000, cost of hiring office $170,000, cost of land $230,000, cost of raw materials $700, investor capital $190,000, purchasing machine $160,000 and bonus for sales staff $300, If a base unit sells for $2950 and other cost are cost of car for director $30,000. fuel cost $575 and salary of casual labor $500, (a) how many units must be sold each year for breakeven and (b) what will the profit be for sales of 3000 units per year? c) What is the difference between the revenue and variable cost per unit that is necessary to break even at a significantly reduced production level of 2800 units, if fixed costs remain constant? Draw graph showing break-even point [10 Marks] (b) FIVE health centres projects to be built in Njombe, Katavi, Geita and Pemba their initial investments in million Tanzania Shiling are TZS 650,000; TZS 670,000 TZS 10,000,000; and TZS 1,025,00,000, respectively. The health project in Njombe, Katavi, Geita and Pemba are not mutually exclusive projects and their expected net cash flows are as shown in the Table below. Assuming a discounting rate of 12%, determine the NPV for each one and recommend options for construction of health centres? [5 Marks] Cash Flows (Million Tsh) Year 1 2 3 4 NJOMBE KATAVI 350,000 185,000 215,000 100,000 220,000 250,000 120,000 109,000 GEITA 148,000 170,000 240,000 180,000 PEMBA 130,000 130,000 130,000 130,000