No More Books Corporation has an agreement with Floyd Bank, whereby the bank handles $2.7 million in collections a day and requires a $425,000 compensating balance. No More Books is contemplating canceling the agreement and dividing its Eastern region so that two other banks will handle its business. Banks A and B each will handle $1.35 million of collections a day and each requires a compensating balance of $230,000. No More Books’ financial management expects that collections will be accelerated by one day if the Eastern region is divided. Required:
a. What is the NPV of accepting the system?
b. What will be the annual net savings?
c.

Bandar industries berhad of malaysia manufactures sporting equipment. one of the company’s products, a football helmet for the north american market, requires a special plastic. during the quarter ending june 30, the company manufactured 35,000 helmets, using 22,500 kilograms of plastic. the plastic cost the company $171,000. according to the standard cost card, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram. 1. what is the standard quantity of kilograms of plastic (sq) that is allowed to make 35,000 helmets? 2. what is the standard materials cost allowed (sq x sp) to make 35,000 helmets? 3. what is the materials spending variance? 4. what is the materials price variance and the materials quantity variance?