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Acme Company produces three products (L, M, and N) from a joint process. Each product can be sold at the split-off point or sold after further processing. A total of $102,000 of costs are incurred before the split-off point. Here are data regarding Acme’s manufacturing process: Which product(s) should Acme sell at the split-off point rather than sell after further processing? 

Acme Company produces and sells three products—P, Q and R. Total annual customer demand is 3,000 units for Product P, 2,000 units for Product Q, and 2,400 units for Product R. The contribution margin per unit is $108 for Produce P, $119 for Product Q, and $95 for Product R. It takes 3.0 machine hours to produce one unit of Product P, 3.5 machine hours to produce one unit of Product Q, and 2.5 machine hours to produce one unit of Product R. Acme’s current capacity is 14,000 machine hours per year. What is the maximum amount that Acme should be willing to pay per machine hour to acquire an additional 1,000 machine hours of capacity?

Acme Company is evaluating a project that requires an initial investment of $225,000 and has a useful life of 6 years and a salvage value of $50,000. Acme uses a discount rate of 16% to make capital budgeting decisions. What is the minimum amount of annual net cash inflows that would make this project acceptable? Round to the nearest whole dollar amount.

Perch, ver B

Which of the following statements regarding the decision to discontinue a product line is not true? 

A project has a profitability index of 0.32 and the present value of the net cash inflows generated by the project is $18,000. What is the required initial investment for this project? Round to the nearest whole dollar amount and do not enter a dollar sign or a decimal point (e.g., enter 89, not $89.00).

Acme Company makes all its inventory sales and inventory purchases on account, and all of Acme’s accounts payable relate to inventory purchases. During the current year, sales revenues are $790,500, cost of goods sold is $535,700, the accounts receivable balance decreases $36,000, the inventory balance increases $28,000, and the accounts payable balance decreases $19,450. What amount of cash did Acme pay to its suppliers of inventory during the year?

Netflix offered to buy Blockbuster’s digital subscribers for $1b.

What is the strategy of doing nothing to relieve crowding in prisons, under the assumption that the problems temporary and will disappear in time?

According to your text and lecture, how many state prison systems operate above capacity?