(Solved by Humans)-PROBLEM—PROBLEMS—50% INSTRUCTIONS: Solve the following problems and record the answers in the...

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PROBLEM—PROBLEMS—50% INSTRUCTIONS: Solve the following problems and record the answers in the Answers column. For Scoring Answers 0. A company is evaluating a proposal to replace machinery that cost $730,000 and has accumulated depreciation of $680,000, with a new machine costing $900,000. The sunk cost for this proposal is $50,000 0. ____ 1–4. Hicks Inc. recently began production of a new product, TYR, which required an investment of $1,000,000 in assets. The costs and expenses of producing and selling 10,000 units of Product TYR are estimated as follows: Variable costs: Direct materials $ 6.00 per unit Direct labor 2.75 Factory overhead 2.25 Selling and administrative expenses 1.00 Total $12.00 per unit Fixed costs: Factory overhead $75,000 Selling and administrative expenses 25,000 The management of Hicks Inc. has decided that Product TYR must earn a 12% rate of return on invested assets. Based on the information given, determine the following: 1. The desired profit from the production and sale of Product TYR $ 1. ____ 2. The markup percentage, using the total cost concept 2. ____ 3. The selling price from Product TYR, based upon (1) and (2) $ 3. ____ 4. A company is currently earning 12% on $1,000,000 invested in marketable securities. If it proposes to use the $1,000,000 to acquire equipment to manufacture a new product that is expected to add $85,000 annually to net income, the opportunity cost of forgoing the income from the marketable securities is $ 4. ____ 5–7. A firm is considering discontinuing Product TB from its multiple product line. For Product TB, the estimated income statement indicates yearly sales of $1,950,000, variable costs of $1,850,000, and fixed costs of $220,000. 5. The anticipated differential cost associated with the discontinuance of Product TB (assuming no reduction in fixed costs) is $ 5. ____ 6. The anticipated differential revenue associated with the discontinuance of Product TB is $ 6. ____ 7. The amount of the net increase or decrease in net income from the discontinuance of Product TB is increase $ decrease $ 7. ____ 8. If the total present value of the net cash flows expected from a proposed capital expenditure is $280,000 and the amount to be invested is $200,000, the present value index is 8. ____ continued