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mamaluj [8]
1 year ago
12

The company expects an annual need for 5,000 switches. If the company makes the product, it will have to utilize factory space c

urrently being leased to another company for $3,700 a month. If the company decides to make the parts, total costs will be:
Business
1 answer:
WITCHER [35]1 year ago
7 0

Based on the cost to produce each unit of the switches and the annual demand, the total costs will be $25,900 more than the cost of purchasing the switches.

<h3>What is the cost of producing the switches?</h3>

This can be found as:

= Variable cost + set up costs + supervisor's salary + opportunity cost of lost rent

= ( (6 + 5 + 4) x 5,000 units) + 45,500 + 41,000 + (3,700 x 12 months)

= $205,900

If they bought the switches at $36, they would cost:

= 36 x 5,000

= $180,000

Its cheaper to buy by:

= 205,900 - 180,000

= $25,900

Find out more on total costs computation at brainly.com/question/5168855.

#SPJ1

You might be interested in
Project S has a cost of $11,000 and is expected to produce benefits (cash flows) of $3,400 per year for 5 years. Project L costs
Kipish [7]

Answer:

Project S = $672.48

Project L = $11,500

Explanation:

Net Present Value (NPV) Is Calculated by Taking the Present day (Discounted) Value of all future Net Cash flows based on the Business Cost of Capital and Subtracting the Initial Cost of the Investment.

Using a Financial Calculator NPV calculations will be as follows:

Project S

CF0 = ( $11,000)

CF1  = $3,400

CF2  = $3,400

CF3  = $3,400

CF4  = $3,400

CF5  = $3,400

i = 14 %

NPV = $672.48

Project L

CF0 = ( $23,000)

CF1  = $6,900

CF2  = $6,900

CF3  = $6,900

CF4  = $6,900

CF5  = $6,900

i = 14 %

NPV = $11,500.

5 0
3 years ago
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annua
CaHeK987 [17]

Answer:

The current price of the bond would be € 898.87

Explanation:

Hi, we need to bring to present value the coupon payments and also the face value of the coupon in order to find the price of this bond, that can be done by using the following formula.

Price=\frac{Coupon((1+Yield)^{n}-1) }{Yield(1+Yield)^{n} } +\frac{FaceValue}{(1+Yield)^{n} }

Where:

Coupon = 1,000*0.078=78

Yield = 0.089 (or 8.9%)

Face Value= 1,000

n = 20 coupon payments

So, everything should look like this.

Price=\frac{78((1+0.089)^{20}-1) }{0.089(1+0.089)^{20} } +\frac{1,000}{(1+0.089)^{20} }

Price=717.13+181.74=898.87

Therefore, the price of this bond is € 898.87

Best of luck.

7 0
2 years ago
If sixty $1,000 convertible bonds with a carrying value of $70,000 are converted into 9,000 shares of $5 par value common stock,
Vinvika [58]

Answer:

Explanation:

The journal entry is shown below:

Bonds payable A/c Dr $60,000

Premium on bonds payable A/c Dr $10,000

           To Common stock A/c $45,000

           To Paid in capital in excess of par A/c $25,000

(Being the conversion of bonds is recorded)

The computation is shown below:

For bonds payable

= sixty $1,000 convertible bonds

That means

= 60 × $1,000

= $60,000

For Premium on bonds payable:

= $70,000 - $60,000

= $10,000

For Common stock:

= 9,000 shares × $5

= $45,000

And, the remaining balance is credited to paid in capital in excess of par

6 0
3 years ago
The _____ stage of the Change Management Continuum Model demonstrates a positive impact on the organization.A. internalizationB.
gladu [14]

Answer:

The correct answer to the following question will be Option C (Adoption).

Explanation:

The adoption stage falls under the Change Management Continuum System educational process. This explains the change which has shown a significant or positive impact on the corporation.

The mental process by which a person moves from the first hearing about such an invention to actual adoption is the acceptance process for either a new product.

There are five stages are in the Adoption stage:

  • Product awareness
  • Product interest
  • Product evaluation
  • Product trial
  • Product adoption

Therefore, Option C is the right answer.

3 0
3 years ago
When Harley-Davidson advertises to reinforce the perception that the brand is masculine, rugged, and individualistic, it is buil
andreev551 [17]

Harley-Davidson is building brand personality by reinforcing the perception that his brand is masculine, rugged, and individualistic.

<h3>What is Brand personality?</h3>

Brand personality is a characteristics attributed to a brand name to which the consumer can relate.

It is an effective brand increases which empowers one's company to build connections with its target audience.

Hence, Harley-Davidson is building brand personality by reinforcing the perception that the brand is masculine, rugged, and individualistic.

Learn more about Brand personality here: brainly.com/question/14558525

#SPJ1  

3 0
2 years ago
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