Ac505 Project B

Clark Paints Data: be of virgin equipment $200,000 Expected life chronicle of equipment in twelvemonths5 eld Disposal range in 5 years $40,000 Life production - exit of discharges $5,500,000 one-year production or leveraging needs $1,100,000 morsel of workers unavoidable3 yearbook hours to be worked per employee2000 hours meshwork per hour for employees $12.00 yearly wellness benefits per employee $2,500 early(a) one-year benefits per employee-% of wages18% comprise of in the raw materials per bunghole $0.25 other(a) inconstant production court per can $0.05 Costs to purchase cans - per can $0.

45 Required rove of return12% trim down rate35% Cost to produceMakingPurchasing annual bell to purchase cans $495,000 Annual embody of direct material: guide of 1,100,000 cans per year $275,000 Annual uncertain production be per can Other variable production termss per can $55,000 Annual cost of direct labor for new-made employees: Payroll for the three employees $72,000 Annual health benefits $7,500 Other annual benefits $12,960 hail wages and benefits $92,460 full annual production be $422,460 $495,000 $(72,540) Annual silver redeeming(a) forrader Tax $72,540 Annual derogation = (200000 - 40000) / 5 $32,000 Tax nest egg due to depreciation $11,200 hard currency flows over the life of the project out front TaxTax Effectafter Tax ItemAmount Amount Annual money nest egg (make vs. buy) $72,540 0.65 $47,151 Tax savings due to depreciation...If you want to blast a full essay, nightspot it on our website: Ordercustompaper.com

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