1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
MaRussiya [10]
3 years ago
15

Erie company has 500 units of capacity for their traditional product, Emu, and buys one point of automation. If Erie company’s c

urrent labor cost per unit of Emu is $10, and Erie sells 1,000 units per year of Emu, what is the payback period for this investment?
Business
1 answer:
11111nata11111 [884]3 years ago
8 0

Answer: 2 years

Explanation:

The payback period is the amount of time that is needed for the required cash inflow of a project to offset the initial cash outflow that the business offsets. The payback period is when the initial outlay of an investment is recovered. There are two different methods used to calculate payback period. We have the average method and the subtraction method.

In the above question, the payback period is solved as follows:

Labour cost decreases by 10% for each unit.

Therefore,

= $10 × 10%

= $10 × 0.1

= $1 per unit.

In order to recover $2000, the business needs to sell the following;

= 2000/1

= 2000units.

If Eric sells 1000 units per year of Emu, it will take:

2000/1000= 2years

In conclusion, the payback period of the investment is 2 years.

You might be interested in
The Homestead Strike of the Iron and Steel workers in Homestead, PA is representative of the struggle in the late 1800's between
denpristay [2]

Answer:

A) True

Explanation:

The Homestead strike was a combination of both a company lockout (the company didn't allow workers to work) and a union strike (where the workers did't want to work). It was a power struggle between one of the darkest and sinister monopolists of the 19th century, Carnegie Steel (led by Andrew Carnegie) and the most powerful workers' union in America, the Amalgamated Association of Iron and Steel Workers.

In 1889 the union won, but Carnegie wanted revenge, so in 1892, he demanded harsher conditions after the initial contract was over and when the union said no, a lockout started. It was bloody and messy, with 16 dead. Carnegie's private army of 300 guards faced 10,000 strikers and things turned ugly soon. The Pinkertons (Carnegie's troops) were "defeated" but too many lives were lost.

Since Carnegie's little was defeated, he asked a bigger fish to help him and the governor sent 8,000 soldiers to arrest any union striker that opposed Carnegie. Finally, Carnegie's millions and corrupt politicians won, and the workers were forced to accept lower wages and more working hours. Those who rejected the forced deal were sent to prison.

6 0
2 years ago
Which are major situational considerations or variables in determining whether or not to involve a group in the decision-making
Oksana_A [137]

Answer:

The correct answer will be Option B "Organizational complexity ".

Explanation:

  • A Complex organization does indeed have a broader organizational structure or even more personnel in each group, mission, or team.
  • Complexity can sometimes be susceptible to multiple actors, various organizational structures, as well as different service will be produced that would need to be implemented.

The other given choices are not related to the given scenario. So that the above would be the appropriate choice.

5 0
2 years ago
why is government intervention often crucial when dealing with both positive and negative externalities?
Dennis_Churaev [7]

Answer:

Because the government can use her sovereign power to both mitigate negative externalities as well as encourage positive externalities.

Explanation:

A positive externality occurs when the transaction between a producer and end user benefits a third party that did not take art in the process.

A very Good example is Education. There is a third party benefit to the society when we have more educated citizens.

A negative externality happens when the business transaction between a manufacturer and consumer affects a third party adversely. a typical example is cigarettes. When cigarettes is consumed by the end user, the smoke can affect the health of a third party that was not part of the initial transaction.

To deal with both positive and negative externalities, government intervention is very crucial.

Government encourages positive externalities like education by subsidizing the cost of attending a school. They also enact laws that make basic education compulsory.

In the case of negative externalities, Government can intervene with a ban on producing harmful goods and also set a legislation about smoking in public laces to mitigate  the health complications caused by third party inhalation.

6 0
3 years ago
Classify each of the statements as true or false.
Tasya [4]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

7 0
3 years ago
The table below gives information on bottled water in Florida. As you would expect, the demand for water is higher than normal d
choli [55]

Answer:

First we need to first find the equilibrium quantity and price during normal times.

The equilibrium price in normal times is P=$3 and the equilibrium quantity is 55 bottles.

During the hurricane, the government will set a price ceiling of $3. We can infer from the table that the quantity supplied at P=$3 is 55 bottles while the quantity demanded during hurricane at the price of $3 per bottle is 105 bottles. Hence,

105-55= 50

During a hurricane, there would be a shortage of 50 bottles of water.

If there were no price ceiling, then the equilibrium price would be such that the quantity demanded during hurricane equals the quantity supplied. From the table we can see that the equilibrium price would in that case be P=$5 per bottle where the equilibrium quantity is 85 bottles. With the price ceiling only 55 bottles are available for trading. Now without the price ceiling 85 bottles are available.

Hence consumers would have to pay an additional $2 (=5-3) but they can now buy an additional 30 bottles [=85-55].

Without the antiprice gouging law, consumers would have to pay $2 more than the ceiling price, but they would bv able to buy 30 more bottles of water.

5 0
3 years ago
Other questions:
  • Keesha Co. borrows $200,000 cash on November 1 of the current year by signing a 90-day, 9%, $200,000 note. 1. On what date does
    6·1 answer
  • Shahia Company bought a building for $88,000 cash and the land on which it was located for $117,000 cash. The company paid trans
    11·1 answer
  • How could a government regulate a natural monopoly? Check all that apply. a.It could buy out the company and operate it instead.
    10·2 answers
  • Outdoor Experiences, Inc. sells a tent that collapses down into a roll that is as big as a roll of toilet paper. The tent can be
    6·1 answer
  • In addition to the legislators and the governor, there are others involved in the lawmaking process during both regular and spec
    5·1 answer
  • Over the period of a year, Sam’s net worth increased. Which of the following could be true?
    10·2 answers
  • Agent Simpson tells residents of a neighborhood minorities are moving into the neighborhood and property values are sure to plum
    10·1 answer
  • I know this is very off topic and I might get banned for this but... I just got a guinea pig. He is Black and Brown with ,like o
    14·2 answers
  • Prompt What is a loan?
    6·2 answers
  • One year ago, Deltona Motor Parts deposited $17,500 in an investment account for the purpose of buying new equipment three years
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!