Suppose you are trying to decide whether or not it makes sense to crash your project. You know that normal project duration and direct costs are 60 days and $125,000. You are worried, though, because you have a very tight delivery schedule and the customer has placed a severe penalty into the contract in the form of $5,000 in liquidated damages for every day the project is late after 50 days. After working with the cost accountant, you have generated the following table of project costs at different completion durations: Project Duration (in days) Direct Costs Overhead Costs Penalty Charges Total Costs
60 $125,000 $15,500 $50,000
57 140,000 13,000 35,000
54 175,000 10,500 20,000
51 210,000 8,000 5,000
Complete the table. How many days would you advise the project should be crashed? Why?

Burke enterprises is considering a machine costing $30 billion that will result in initial after-tax cash savings of $3.7 billion at the end of the first year, and these savings will grow at a rate of 2 percent per year for 11 years. after 11 years, the company can sell the parts for $5 billion. burke has a target debt/equity ratio of 1.2, a beta of 1.79. you estimate that the return on the market is 7.5% and t-bills are currently yielding 2.5%. burke has two issuances of bonds outstanding. the first has 200,000 bonds trading at 98% of par, with coupons of 5%, face of $1000, and maturity of 5 years. the second has 500,000 bonds trading at par, with coupons of 7.5%, face of $1000, and maturity of 12 years. kate, the ceo, usually applies an adjustment factor to the discount rate of +2 for such highly innovative projects. should the company take on the project?

The smelting department of kiner company has the following production and cost data for november. production: beginning work in process 3,700 units that are 100% complete as to materials and 23% complete as to conversion costs; units transferred out 10,500 units; and ending work in process 8,100 units that are 100% complete as to materials and 41% complete as to conversion costs. compute the equivalent units of production for (a) materials and (b) conversion costs for the month of november. materials conversion costs total equivalent units

Lin corporation has a single product whose selling price is $136 per unit and whose variable expense is $68 per unit. the company’s monthly fixed expense is $32,400. required: 1. calculate the unit sales needed to attain a target profit of $5,000. (do not round intermediate calculations.) 2. calculate the dollar sales needed to attain a target profit of $8,400.