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quester [9]
3 years ago
6

Cobe Company has already manufactured 23,000 units of Product A at a cost of $25 per unit. The 23,000 units can be sold at this

stage for $420.000. Alternatively, the units can be further processed at a $280.000 total additional cost and be converted into 6.000 units of Product B and 11,900 units of Product C. Per unit selling price for Product B is $106 and for Product C is $52.
Required:
Prepare an analysis that shows whether the 23,000 units of Product A should be processed further or not.
Business
1 answer:
zysi [14]3 years ago
7 0

Answer:

It is more profitable to continue processing the units.

Explanation:

Giving the following information:

Product A:

Units= 23,000

Selling price= $420,000

Continue processing:

Product B= 6,000 units sold for $106 each

Product C= 11,900 units sold for $52 each

Total cost= $280,000

We need to calculate the effect on the income of both options and choose the most profitable on<u>e. We will not take into account the first costs of Product A because they are irrelevant.</u>

Option 1:

Effect on income= $420,000

Option 2:

Effect on income= (6,000*106) + (11,900*52) - 280,000

Effect on income= $974,800

It is more profitable to continue processing the units.

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The measure of systematic risk is called ________.
Lorico [155]

The measure of systematic risk is called <u>beta</u>.

The answer is option c.

Beta is the same old CAPM measure of systematic hazard. It gauges the tendency of the go back of protection to transport in parallel with the return of the inventory market as an entire. One manner to consider beta is as a gauge of a protection's volatility relative to the marketplace's volatility.

Systematic risk is a part of the total risk this is caused by factors beyond the control of a specific company or individual. Systematic risk is caused by elements that are outside to the organization. All investments or securities are situations to systematic hazard and, therefore, it's far a non-diversifiable chance.

To measure a monetary firm's contribution to systemic hazard includes measuring the company's expected capital shortfall in a crisis. This right away offers the regulator with a quantifiable degree of the relative significance of a firm's contribution to ordinary systemic chance.

Learn more about organization here: brainly.com/question/24448358

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4 0
1 year ago
Snap Dragon Photo reported the following figures on its December 31, 2016, income statement and balance sheet:Net Sales $440,000
siniylev [52]

Answer:

Assets turnover ratio= 1.64 times

Explanation:

The asset turnover is the he amount of sales generated by one dollar invested in asset. it measures how efficient the business is in generating sales using assets

Assets turnover ratio = net sales / Average assets

<em>Asset at the beginning of year 2016</em>

=26,000  + 56,000 +    79,000 +     8,000  + 180,000 = 349 ,000

<em>Asset at the end of year 2016</em>

$28,000  + 58,000 +    76,000  +  14,000 +  11,000= 187 ,000

Average assets = Opening value of asset+ closing value of assets/2

= 349 ,000 + 187 ,000= 268 ,000

Assets turnover ratio = net sales / Average assets

=440000/268,000= 1.64 times

Assets turnover ratio= 1.64 times

Total assets =

3 0
3 years ago
Consider a mutual fund with $260 million in assets at the start of the year and 10 million shares outstanding. The fund invests
Ugo [173]

Answer: $26; $28.057

Explanation:

Total value = $260 million in assets

Shares outstanding = 10 million

Dividends = $2.5 million

Fund value at the start of the year = \frac{Total\ value}{No.\ of\ shares\ outstanding}

                                                         = \frac{260}{10}

                                                         = $26

Fund value at the end of the year:

Dividend per share = \frac{Dividends}{No\ of\ shares}

                                = \frac{2.5}{10}              

                                = $0.25

Price gain at 9% with deduction of 1% of 12b-1

Fund value at the end of the year = $26 × 1.09 × (1 - 0.01)

                                                        = $28.057

4 0
3 years ago
A company purchased $9,100 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $455 of that merchandise.
elena-14-01-66 [18.8K]

Answer:

$259.35

Explanation:

The computation of the amount of cash paid is shown below:

= (Purchase value of merchandise - returned goods of merchandise - discount charges)

= ($9,100 - $455 - $259.35)

= $8,385.65

The discount charges is

= (Purchase value of merchandise - returned goods of merchandise) × discount rate

=  ($9,100 - $455) × 3%

= $259.35

We simply applied the above formula

3 0
3 years ago
The consumer price index (CPI) can be used to measure inflation. There are potential problems with this process though that can
DIA [1.3K]

Answer:

a. Overstates Inflation.

In the case of Mary and Bob, the CPI would have already increased but in this case the price of the minivan increased as well. This will overstate inflation because it will not measure the general rise in price alone (inflation), it will also measure the rise in price as a result of the new minivan having better features.

b. Understated Inflation

Donna's case represents an understated inflation because the quantity shrank yet the price stayed the same. This means that the price is now buying less quantity than it used to which is inflation because more dollars are now required to buy the previous amount. This was not however recorded as there was no change in price.

c. Overstates Inflation

In the case of Zach, the inflation will be overstated because Zach is no longer buying bagels and is now buying muffins so continuing to use bagels as a representative good in the basket of goods used to calculate CPI would be overstating it.

d. Accurate representation of Inflation

In Chris's case, the increase in the price of the same shoe over the years has been because of a general rise in prices and not because it is a different model. It is the same shoe and its price is rising generally so this is an accurate depiction of inflation.

6 0
3 years ago
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