I am desperate.. I had been trying to resolve this problems for the last wk.Please help!!


1.YZ corp is a small chair manufacturing company.

Managers estimate the following cost per unit
(one chair)

Direct material 6.00
Direct Labor 4.00
Variable manfacturing 3.00
Variable Administrative 1.00

Contribution margin 30%
Fixed Cost
Manufacturing 10,000
Administraive 5,000

Find the total profit if company drops product x?

2.YZ corp is a small chair manufacturing company.

Managers estimate the following cost per unit
(one chair)

Direct material 6.00
Direct Labor 4.00
Variable manfacturing 3.00
Variable Administrative 1.00

Contribution margin 30%
Fixed Cost
Manufacturing 10,000
Administraive 5,000

Assume the co. wants to replace product x by new product R. Selling price for product R is 7.00,variable cost per unit 5, total avoidable cost 130.00 How many units or R would the company sell to maintain its estimated profit from selling product x?

3.YZ corp is a small chair manufacturing company.

Managers estimate the following cost per unit
(one chair)

Direct material 6.00
Direct Labor 4.00
Variable manfacturing 3.00
Variable Administrative 1.00

Contribution margin 30%
Fixed Cost
Manufacturing 10,000
Administraive 5,000

A foreing co. offers to buy product Z, unit price 8.00, monthly units requier by foreing co are 50 units.special offer will not affect variable cost .should the co accept the offer? total income?


4. Manager want to buy a new machine. cost of machine 150,000, useful life 4 years, cash cost savings 50,000,tax rate 20%,cost of capital 10%.Find annual net cash flow