The personnel department of the A&M Corporation wants to know how many workers will be needed each month for the next six-month production period. The following is a monthly demand forecast for the six-month period. The inventory on hand at the end of June was 500 units . Each unit requires five employee-hours to produce, there are 20 working days each month, and each employee works an eight-hour day. The workforce at the end of June was 35 workers. It costs $500 for each worker hired. Severance pay amounts to $1000 per worker. Each employee gets paid $8.00 per hour. It costs $10 per month to hold each unit of inventory. Overtime is NOT allowed. HINT: Determine K in terms of units per day per worker a)Determine a minimum inventory production plan (i. e., one that allows arbitrary hiring and firing). b)Determine the production plan that meets demand but does not hire or fire workers during the six-month period. c)Let’s say subcontracting is allowed. Let’s say we implement the constant workforce with subcontracting plan, what would the cost of subcontracting need to be to beat the cheaper of the two options above? d)Using this subcontracting cost of $50, formulate a LP and solve to optimality for the constraints of this problem I highly recommend solving parts A, B, and C by hand and checking against the excel worksheet.

Afirm's before-tax cost of debt, rd, is the interest rate that the firm must pay on debt. because interest is tax deductible, the relevant cost of debt used to calculate a firm's wacc is the cost of debt, rd (1 – t). the cost of debt is used in calculating the wacc because we are interested in maximizing the value of the firm's stock, and the stock price depends on cash flows. it is important to emphasize that the cost of debt is the interest rate on debt, not debt because our primary concern with the cost of capital is its use in capital budgeting decisions. the rate at which the firm has borrowed in the past is because we need to know the cost of capital. for these reasons, the on outstanding debt (which reflects current market conditions) is a better measure of the cost of debt than the . the on the company's -term debt is generally used to calculate the cost of debt because more often than not, the capital is being raised to fund -term projects. quantitative problem: 5 years ago, barton industries issued 25-year noncallable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). the bonds currently sell for $845.87. if the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? round your answer to 2 decimal places. do not round intermediate calcu

Vintage fun reproduces oldminusfashioned style roller skates and skateboards. the annual production and sales of roller skates is 950 units, while 1,750 skateboards are produced and sold. the company has traditionally used direct labor hours to allocate its overhead to products. roller skates require 2.5 direct labor hours per unit, while skateboards require 1.25 direct labor hours per unit. the total estimated overhead for the period is $114,300. the company is looking at the possibility of changing to an activityminusbased costing system for its products. if the company used an activityminusbased costing system, it would have the following three activity cost pools: the overhead cost per skateboard using the traditional costing system would be closest to: a. $9.31. b. $65.31. c. $25.05. your answer is not correct. d.

Wilson company paid $5,000 for a 4-month insurance premium in advance on november 1, with coverage beginning on that date. the balance in the prepaid insurance account before adjustment at the end of the year is $5,000, and no adjustments had been made previously. the adjusting entry required on december 31 is: (a) debit cash. $5,000: credit prepaid insurance. $5,000. (b) debit prepaid insurance. $2,500: credit insurance expense. $2500. (c) debit prepaid insurance. $1250: credit insurance expense. $1250. (d) debit insurance expense. $1250: credit prepaid insurance. $1250. (e) debit insurance expense. $2500: credit prepaid insurance. $2500.