Reference no: EM133021666
Question - The company Senior 55AB offers services to homeowners. During the winter, snow removal and winter maintenance are performed. From spring to autumn, they offer garden planning, lawn mowing and gardening. The sales price amounts to SEK 800 per hour.
In the coming year, it is estimated to work and charge customers a total of 12,000 hours, which corresponds to 120% of the normal number of working hours during a year.
Company total costs for the coming year are estimated at SEK 8,000,000. Of these costs, SEK 3,600,000 comprise variable costs and SEK 2,400,000 fixed costs
Required -
a) How large will the cost per working hour be according to the division method?
b) How big will the cost per working hour be according to the normal production cost (normal method)?
c) Assume that Senior 55 AB will charge its customers a total of 11000 hours for the coming year. Calculate how much under-coverage or over-coverage in kronor you get for the fixed costs if the cost has been calculated using a normal calculation (the normal method).
d) Explain why over- or under-coverage can occur when you use the normal production cost (normal method).
|
What is the amount of the non-controlling interest
: In December 2015, National Ltd paid a $20,000 dividend. What is the amount of the non-controlling interest in National Ltd as at 30 June 2016
|
|
What are the total variable costs
: Asco Company has a relevant range of production between 15,000 and 30,000 units. If 18,000 units are produced, what are the total variable costs
|
|
What is the present value of the cost of leasing
: What is the present value of the cost of leasing if the lease payment are an annuity due, so the first payment comes immediately
|
|
What are the net operating cash flows in years
: The sprayer's base price is $1,030,000, and it would cost another $18,000 to install it. What are the net operating cash flows in Years 1, 2, and 3
|
|
How large will the cost per working hour be
: In the coming year, it is estimated to work and charge customers a total of 12,000 hours, How large will the cost per working hour be
|
|
How much should you be willing to pay for the stock
: The stock will then reach $33 per share. How much should you be willing to pay for the stock if you require a 15 percent return
|
|
What is the project NPV
: Crane's tax rate is 34 percent, and its opportunity cost of capital is 10.30 percent. What is the project's NPV? Should the company purchase the saw
|
|
What was its ROI
: ScoMo Ltd reported a profit margin during the year of 25%, an investment turnover of 30% and a leverage ratio of 50%. What was its ROI
|
|
What is the maximum price you should be willing to pay
: If you require a 9.0% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond
|