Asset: fe ai $ 24/100 Pann Recevables 5,007, Allou.ance for dovbttul accounts (4-500) Inventor 705,000 Frcs Expenses 18,600 Short-reem Investments 123,500, Toral Current Asser “AaTOO. Property /Plant /Equip ent 100,000 a 7 215,000 Equipment 315,300 Furniture 21, 500 Test accumulated depreciation, (350/000) Net P/P/E 422,300 Intangible Assets Goodall 25,000 Total Intangible Ascots 251000 Total Assets 8 7,000 LYLE ATIENZA Lobilities : Current! Account payable, § '2,000 Vneamed Re venves 251000 Sur te es oy, —_ 125,000 fofal Goren iobilities. 162/000 longrtorm Liabilitiec ong -terws Note Payake 250,000 ToFal Long-term abilities 250/000 “Total Lalitits 412,000 Stakeholder’s Equity: Common Stock 200,000 Retained Earnings 275,000 Total stakeholder: fquity 475,000 Total Liotwithes & 827,000 Stakeholder's Equity Scanned with CamScannerLYLE ATIENZA Soles § 450,000 Cost (210,000) Grose Profit 230,000 Operating Expenses! ~Adverheing Expense (28,000) Admunstratve Satan, Expense (80/000) Accrued Expense (11,000 ) Insurance Expence ( 4,000) Rent Expense (12,000) Research and Development costs (22000 ) Restructuring — Operating Inconie 741000 Other Revenue &. FxPenses Interest Income (10,000) loss on sale of @ buen (26,000) Income before tax 40,000 Tax expense (14,000) Income fom conhwwing Operation’ 26,000 Unusval Gan 90,000 Net Income 116,000 Scanned with CamScannerLYLE DOMINIC LI ATIENZA ‘5 > ~ {eee {05 crs P= §o9-0.050 . (005) Ce= $400,000 Gory © (00-bd*) = (6-440) Cy= $13.50 = [ $coo(4ers)-o.0s(4ee5)’ | - [ $400,000 + $1215 (aces) | 14197, 461.25 b) ) +b) (acv)D- Cr = O -0.05D2+(§600-1815)) ~f100.000 = 0 = 9.052 + 468:5D- 900,000 = Q cae. 5+ (4c% 5? - 4C0.05)(¢-4e0 1000) a ee 2(-0.05) Dye \pe97. hea7.7343 » Dq \6672.2657 Domain of profitable demand is 247.7343 - 6672. 2657 units per month Scanned with CamScannerOLE ATIENZA Total Cost = Annual Eapenses + Purchase Price + Annval Maintenance i . (woe set)( $0 so woot ae = (37,300 + ¢ 2,400 + $170 § 37,300 - “(Goan XYZ = (zxsuy( $2102) {¢,200+ £510 = $ sure + $6.200+ $510 » [Ena] eae Thus, KYZ pump should be chosen to mmnumize total cost. Scanned with CamScanner