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4 years ago

The Wester Corporation produces three products with the following costs and selling prices:

Business

2 answers:

vitfil [10]4 years ago

8 0

Answer:

Product A, then Product C and finally Product B

Explanation:

The unit profit = Selling price per unit - Variable cost per unit - Fixed cost per unit

Unit Profit of product A = $21 - $11 - $5 = $5

Unit Profit of product B = $12 - $7 - $3 = $2

Unit Profit of product C = $32 - $18 - $9 = $5

The profit of each product in 1 machine hour = 1 hour/ Machine hours per unit * Unit Profit

Profit of Product A in 1 hour using machine = 1/0.2 * $5 = $25

Profit of Product B in 1 hour using machine = 1/0.5*$2 = $4

Profit of Product C in 1 hour using machine = 1/0.2* $5 = $25

Product A & Product C have same profit in 1 hour machine, then we have to consider Direct labor hours per unit which product A is 0.4 while product C is 0.7. It means Product C is more costly in direct labour than Product A.

In short, then the ranking of the products from the most profitable to the least profitable use of the constrained resource is Product A, then Product C and finally Product B

viva [34]4 years ago

3 0

Answer: The ranking of the product in terms the most profit to the least profit is A C B

Explanation:

A. B. C

$ $ $

Selling price per unit. 21 12 32

Less: Variable cost. 11 7 18

---------- ----------- ----------

Contribution margin. 10 5 14

Less: Fixed cost per unit. 5 3 9

-------- ---------- -----------

Profit. 5 2 5

--------- ------- --------

Since the machine hour is the constraint, we divide the profit by the machine hour per unit

Product A = 5÷0.2 = 25

Product B= 3 ÷ 0.5 = 4

Product C = 5 ÷ 0.2 = 25

Therefore the ranking in terms of most profitable to the least profitable is ACB

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Suppose you have $10,000 in cash and you decide to borrow another $10,000 at a(n)6% interest rate to invest in the stock market.

elena-14-01-66 [18.8K]

Answer:

D)-26%

Explanation:

The computation of the realized return on your investment is shown below:

= (Rate of return × total investment) - (interest paid)

= (-10% × $20,000) - (6% × $1,000)

= (-$2000 - $600)

= -$2,600

Now the Rate of return is

=(-$2,600 ÷ $10,000)

= -26%

hence, the realized return on your investment is -26%

Therefore the correct option is D.

3 0

3 years ago

Farmco just paid its annual dividend of $.32 per share. The dividends are expected to grow at 25 percent annually for the next 4

vitfil [10]

Answer:

$5.73(Approx).

Explanation:

Given:

= 0.32

Growth rate = 25% = 0.25

Number of year = 4

Growth rate after 4 year = 3% = 0.03

Required rate of return = 15% = 0.15

Computation of divined in 4 year:

$Annual\ dividend\ paid(1+growth\ rate)^n\\\\0.32(1+0.25)^4\\\\0.32(1.25)^4\\\\0.32(2.44140625)\\\\0.78125$

Price of stock after year 4 = [Divined in 4 year × (1 + new growth)] /[Required rate of return - Growth rate after 4 year ]

Price of stock after year 4 = [0.78125 × (1+0.03)] / [0.15 - 0.03]

Price of stock after year 4 = [0.8046875] / [0.12]

Price of stock after year 4 = $6.70572917

Present value = Future value / $(1+r)^n$

Present value = $6.70572917 / $(1.15)^4$

Present value = $6.70572917 / $(1.16985856)$

$5.73(Approx).

6 0

4 years ago

Which stage in project management involves team members working on the assigned tasks as described in the project plan?

vagabundo [1.1K]

Answer:

C. execution

Explanation:

The execution stage is 3rd stage in project management lifecycle is usually is longest phase as during which the teams develops the product or services and presents the final end product to the clients. Here the team members work on the same set of guidelines that are assigned or designed in a project.

3 0

3 years ago

Jacob chose to spend the afternoon swimming rather than going to the movies. any value given up from not going to the movies is

quester [9]

Any value given up from not going to the movies is the <u>"opportunity cost".</u>

Opportunity costs represent the advantages an individual, speculator or business passes up while picking one option over another. While money related reports don't demonstrate opportunity cost, entrepreneurs can utilize it to settle on taught choices when they have various alternatives previously them. Since they are concealed by definition, opportunity expenses can be neglected in the event that one isn't cautious. By understanding the potential botched chances one renounces by picking one venture over another, better choices can be made.

4 0

3 years ago

Read 2 more answers

Steven wants to become a member of the labor union. Which law giver him the right to do so?

ziro4ka [17]

Answer:

D. Wanger Act

Explanation:

3 0

3 years ago