Answer:
The payback period is E. 3.52 years
Explanation:
The payback period is the time taken for an investments cash inflows to cover the initial outlay or initial cost of the project. The payback period tells how much time the project will require to cover its initial cost.
The initial cost of the project is $1100
By the end of Year 3, the project will recover = 300 + 310 + 320 = 930
The remaining amount to recover initial cost = 1100 - 930 = 170
Assuming that the cash flows occur evenly though out the years, the payback period will be = 3 + (170 / 330) * 10 = 3.515 rounded off 3.52 years
Answer: $7.20 per minute
Explanation:
Find out the profitability of each product as Contribution Margin per minute.
Magnifico
Contribution margin per minute = (Selling price - Variable cost) / minutes on the constraint
= (335.18 - 259.26) / 7.5
= $10.12 per minute
Bellissimo
= (228.46 - 173.08) / 4.3
= $12.88 per minute
Lovely
= (199.21 - 159.61) / 5.5
= $7.20 per minute
Their least profitable product is $7.20 per minute.
The machine does not have sufficient time to satisfy the needs of Lovely so they will have to pay more to acquire more of the resource but they should not pay anything more than $7.20 per minute as this is their contribution margin for the product. and anything more would result in a loss.
<em>Options are most probably for another variant of the question. </em>
Answer:
TRUE
Explanation:
Value can be defined as the thing for which an customer is willing to pay the price. It is the activity on any shop floor or business for delivering the product or service to the customer for which the customer is ready to pay the price for it.
If the customers does not wish to pay the price, then there is no value.
So inside a factory, in a shop floor, moving a part from one place to another for making a product that the customer is willing to pay is a value added activity. But excess movement or transportation of product does not any value to it, it is then considered as a waste.
Also storing of products is a non value activity as storing a product will not help the customer in any way and a customer will not pay for a product when it is stored and is of no use to the customer.
Answer: an instruction, command, or duty given to a person or group of people.
Explanation:
an instruction, command, or duty given to a person or group of people.
