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garik1379 [7]
2 years ago
15

Buyer Beware Toy Company is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled pro

duct is $30 and Buyer Beware Toy would sell it currently for $65. The cost to assemble the product is estimated at $21 per unit and the company believes the market would support a new price of $85 on the assembled unit. What decision should be made about whether to sell or process further?
A)
Sell before assembly, the company will be better off by $1 per unit.

B)
Sell before assembly, the company will be better off by $20 per unit.

C)
Process further, the company will be better off by $29 per unit.

D)
Process further, the company will be better off by $14 per unit.
Business
1 answer:
maria [59]2 years ago
8 0
I think it $1 per unit
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he​ _____ rate is the percentage of a​ company's customers​ (within a given span of​ time) who by the end of that time span have
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Answer:

B) churn

Explanation:

The churn rate refers to the percentage of customers lost by a company (usually during a 1 year span) either because they stopped a subscription or stopped purchasing its products.

The churn rate can also refer to the percentage of employees leaving or quitting a company during one year.

7 0
3 years ago
Binder Corporation agreed to build a warehouse for a client at an agreed contract price of $4,000,000. Expected (and actual) cos
Rainbow [258]

Answer:

The correct option is a. 2017: $200,000 2018: $520,000 2019: $240,000.

Explanation:

The formula for cost to cost method is expected or actual cost incurred to date divided by the total cost of the project or contract.

Therefore, we have:

Total cost = Cost in 2017 + Cost in 2018 + Cost in 2019 = $640,000 + $1,600,000 + $800,000 = $3,040,000

Cost in 2017 contribution to total cost = Cost in 2017 / Total cost = $640,000 / $3,040,000 = 0.21

Cost in 2018 contribution to total cost = Cost in 2018 / Total cost = $1,600,000 / $3,040,000 = 0.53

Cost in 2019 contribution to total cost = Cost in 2019 / Total cost = $800,000 / $3,040,000 = 0.26

Revenue in 2017 = Cost in 2017 contribution to total cost * Contract price = 0.21 * $4,000,000 = $840,000

Revenue in 2018 = Cost in 2018 contribution to total cost * Contract price = 0.53 * $4,000,000 = $2,120,000

Revenue in 2019 = Cost in 2019 contribution to total cost * Contract price = 0.26 * $4,000,000 = $1,040,000

Therefore, net income for each year 2017 through 2019 using the cost-to-cost method can be computed as follows:

Net income for year 2017 = Revenue in 2017 - Cost in 2017 = $840,000 - $640,000 = $200,000

Net income for year 2018 = Revenue in 2018 - Cost in 2018 = $2,120,000 - $1,600,000 = $520,000

Net income for year 2019 = Revenue in 2019 - Cost in 2019 = $1,040,000 - $800,000 = $240,000

Therefore, the correct option is a. 2017: $200,000 2018: $520,000 2019: $240,000.

6 0
3 years ago
Read 2 more answers
Coyne Corporation is evaluating a capital investment opportunity. This project would require an initial investment of $30,000 to
postnew [5]

Answer:

A. $41,120.

Explanation:

Year    Description          Cash flow           Present [email protected]%

0       Equipment cost      ($30,000)                    ($30,000)

1-4      Additional CF           $24,000                    $69,929.10

4        Residual value            $2,000                       $1,184.16

Present value total                                                 $41,113.26

Based on the above calculation, the answer shall be A. $41,120.

8 0
3 years ago
Furnco sells secretarial chairs. Annual demand is normally distributed, with mean of 1,040 chairs and standard deviation of 50.9
kaheart [24]

Answer:

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Reorder point is the level of inventory which trigger the purchase of new inventory.

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Annual demand * Leadtime + Safety Stock

Reorder Point = 1040 / 365 * 14 days + 0

= 40.

The lost sales cost is $50 in goodwill, Furnco should keep a safety stock of at least 30 chairs in order to meet demand level.

7 0
2 years ago
In 2014, paxson incurred a net loss of $2,500. no dividends were declared or paid during 2014. what was paxson's retained earnin
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Paxson's retained earnings balance one year earlier on December 31, 2013 was $24,500.00

8 0
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