Answer:
The order should be accepted as it will icnrease contribution by 2,700 dollars
Sales revenue 112,500
variable cost (106,800)
additional fixed cost <u> (3,000)</u>
contribution 2,700
Explanation:
We have to calculate the variable cost to compare against the offer sales price:
COGS
2,600,000 x 70% = 1,820,000
Operating expense
840,000 x 80% = 672,000
total variable 2,492,000
variable per unit:
2,492,000 / 350,000 = 7.12
we now calculate the contribution of the order and subtract the additional cost:
15,000 units x (7.50 - 7.12) -3,000 additional shipping
contribution 2,700
Answer:
scenario planning and scenario analysis.
Explanation:
Planning can be defined as the process of developing organizational objectives and translating them into action plans or courses of action.
This ultimately implies that, planning is a strategic technique used by organizations to make an aggregate plan for its manufacturing (production) process typically ahead of time, in order to have an idea of the level of goods that are to be produced and what resources are required so as to reduce the total cost of production to its barest minimum.
Contingency planning is also known as scenario planning and scenario analysis.
Basically, a contingency planning is a type of plan that is typically designed by a business firm to take into account a possible future circumstance or event based on a forecast.
Answer:
Gross profit is a required income statement entry that reflects total revenue minus cost of goods sold (COGS). Gross profit is a company's profit before operating expenses, interest payments and taxes. Gross profit is also known as gross margin
Answer:
Explanation:
See the attached for a spreadsheet of the values given in the problem statement. We have simply added the salary to the value of the preference and subtracted the one-time moving expense.
The right-most column shows the net increase in value of moving to Miami for each of the householders. Bonnie achieves so much more value that her net value outweighs the rather significant hit in value that Donna experiences.
If the vote is by net value to the householders, they must vote to move. There are no householders that have a net zero change in value.
_____
<em>Comment on democracy</em>
A decision based on net value does not account for the rather significant cost to Donna. If the household values mental health and interpersonal relationships, the fact that one member suffers badly from the move should be enough to sway the decision against it.
Answer:
Quantity discounts can be taken advantage of for large lot sizes.
Explanation:
The EOQ model assumptions:
the order of one item does not intervene with the other.
The order will arrive without delay and with a specific amount of goods.
no losses or damage in transit
The EOQ does not consider the discount for large lot size, their formula does not consider the value of the goods:

Its use: Demand of the good
cost of Setup, or ordering cost.
and Holding cost, the cost of keeping the inventory
There is no variable to account for discounts for order size in this method