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dedylja [7]
3 years ago
9

Joe Jenkins, the owner of Jenkins Manufacturing, is considering whether to produce a new product. Joe will be selling the produc

t for a price of $70 per unit. If he uses the current equipment, Joe estimates the fixed costs per year to be $40,000 and variable costs for each unit produced to be $50. However, Joe is considering the purchase of new equipment that would produce the product more efficiently. Joe’s fixed cost would be raised to $60,000 per year, but the variable cost would be reduced to $25 per unit. If Joe's demand forecast is 900 units, should Joe produce the product using the existing or the new equipment? Produce using the existing equipment. Produce using the new equipment. Does not matter, which equipment is used. The product should not be produced at all.
Business
1 answer:
Paul [167]3 years ago
7 0

Answer:

Jenkins Manufacturing

Joe should produce using the new equipment.

Explanation:

a) Costs incurred using the old equipment:

Variable costs = $45,000 ($50 x 900)

Fixed costs = $40,000

Total costs = $85,000

Operating Loss = $22,000 ($63,000 - 85,000)

b) Costs incurred using the new equipment:

Variable costs = $22,500 ($25 x 900)

Fixed costs = $60,000

Total costs = $82,500

Operating Loss = $19,500 ($63,000 - 82,500)

Production using the new equipment would reduce the operating loss by $2,500.

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alexandr402 [8]

A manager's operation had sales this period of $89,775. last period sales were $85,500. So the manager's percentage sales increase for this period when compared to last period was 5% .

The percentage increase is the measure of the percentage change. The percentage increase is defined as the ratio of increased value to the original value and then multiplied by 100. Here the increased value can be calculated by taking the difference between the final value and the initial value. The formula to calculate increase is given by -

Percentage Increase = [(Final value – Original value) × 100] / Original value %

In this case,  original value is $85500 and the final value is $89775, then the percentage increase is:

Percentage Increase = [(89775-85500) ×100]/85500

= 427500/85500

= 5%

So, the percentage increase  will be 5% .

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5 0
1 year ago
Peterson Company estimates that overhead costs for the next year will be $3,400,000 for indirect labor and $850,000 for factory
GREYUIT [131]

Answer:

Predetermined manufacturing overhead rate= $50 per machine-hour

Explanation:

Giving the following information:

Estimated overhead costs= $3,400,000 for indirect labor

Estimated overhead costs= $850,000 for factory utilities.

85,000 machine hours are planned for this next year

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (3,400,000 + 850,000) / 85,000

Predetermined manufacturing overhead rate= $50 per machine-hour

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With the emergence of smartphones, users no longer have to carry a separate music player, a video game, a laptop, or a magazine
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Answer: (D) Industry convergence

Explanation:

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The industry convergence is the way for applying the knowledge by using the various types of technology related application in the industry.

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Therefore, Option (D) is correct answer.

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The theory is that the savannah became increasing because of increasingly more arid situations, which then drove the hominin version.

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