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Elanso [62]
3 years ago
7

Lakeside Inc. produces a product that currently sells for $57.60 per unit. Current production costs per unit include direct mate

rials, $22; direct labor, $24; variable overhead, $11.00; and fixed overhead, $11.00. Product engineering has determined that certain production changes could refine the product quality and functionality. These new production changes would increase material and labor costs by 20% per unit. If Lakeside could sell the refined version of its product for $40 per unit, should it be processed further?
Business
1 answer:
Sidana [21]3 years ago
5 0

Answer:

It is convenient to make the changes.

Explanation:

Giving the following information:

Selling price= $57.60 per unit.

Direct materials= $22

Direct labor= $24

Variable overhead= $11.00

Fixed overhead= $11.00.

New costs:

Direct material cost= 22*1.2= $26.4

Direct labor cost= 24*1.2= $28.8

<u>I suppose that the selling price will increase by $40.</u>

To determine whether the changes increase profit or not, we need to calculate the unitary contribution margin per unit for both options:

Contribution margin= selling price - unitary variable cost

Actual Contribution margin:

Contribution margin= 57.6 - (22 - 24 - 11)= 0.6

New contribution margin:

Contribution margin= 97.60 - (26.4 - 28.8 - 11)= $31.4

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Gre4nikov [31]

Answer:

Prices increase, C

Explanation:

Inflation is when the value of a dollar, or other currency type, drops. This happens most commonly when more money is being printed. The more there is, the less it is worth. This causes prices to increase.

Hope this helps

4 0
3 years ago
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Alex73 [517]

Answer:

a. investment risk

Explanation:

Risk is the potential of an action or activity (including the option not to move) to cause an undesired loss or event. The idea implies that a choice affects the outcome. The same potential losses can be called "risk".

Investment risk: We can define it as the inappropriateness between the actual and expected returns. Because on this type of risk, there may be occurrence of any losses with some probability or likelihood which will be relative the expected return.

Asset class is about the grouping process of investments which have some mutual or similar characteristics. The risk on this case is something has relative elasticity compared to another investment in the market.  Usually, there is 3 groups of asset classes: equities, bonds and money market instruments.

The market risk which is called sometimes as systematic risk. This risk consider the entire market and has effects on this scale. The investor who undertook this risk will see that the factors which affect the overall performance of the whole marketplace.

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8 0
3 years ago
A good handler wants to use a thermometer to measure the air temperature inside of a cooler. To what temperature should the ther
navik [9.2K]

Answer:

2°F, or ±1.0°C

Explanation:

5 0
3 years ago
Linda, the human relations manager, is having lunch with Kellyanne, who will be leaving to manage the company office in Hiroshim
olchik [2.2K]

Answer:

False

Explanation:

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Tips are not seen as an incentive to better work in Japan.

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7 0
3 years ago
Sasha is a single woman who is paid $16 per hour for 2,000 hours of work per year. Using her exemption of $4,050 and her standar
densk [106]
For this case what you must do is the following operation:
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4 0
3 years ago
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