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Gnesinka [82]
2 years ago
13

A company has a process that results in 26000 pounds of Product A that can be sold for $8 per pound. An alternative would be to

process Product A further at a cost of $174200 and then sell it for $14 per pound. Should management sell Product A now or should Product A be processed further and then sold? What is the effect of the action? Sell now, the company will be better off by $18200. Process further, the company will be better off by $156000. Process further, the company will be better off by $18200. Sell now, the company will be better off by $174200.
Business
1 answer:
Tom [10]2 years ago
8 0

Answer:

Sell now, the company will be better off by $18200

Explanation:

The computation is shown below:

Sales value after processing the product (26,000 × $14)   $364,000

Less: sales value   (26,000 × $8) $208,000

Increase in advantage due to processing $156,000

Less: processing cost ($174,200)

Net disadvantage of processing the product ($18,200)

As we can see the final answer comes in negative which means the product should be sold now

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mr Goodwill [35]

In the above situation, the potential costs that may be derived will be,

  1. Straws made of alternative materials lack the flexibility of plastic straws. This makes it harder for people with disabilities, seniors, and children to use them.
  2. Compostable straws are an alternative to disposable straws. For compostable straws to break down properly they need to be disposed of in a special commercial composter, an infrastructure that needs to be created.
  3. Alternatives to disposable straws do not need fossil fuels to be recycled.

Therefore, the options B, C and D hold true.

<h3>What is the significance of potential costs?</h3>

The potential costs can be referred to or considered as the costs that may have a contingency of being incurred by a producer upon the effects of some external factors.

Therefore, the options B, C and D holds true and states regarding the significance of potential costs.

Learn more about potential costs here:

brainly.com/question/10963256

#SPJ4

The question seems to be incomplete. It has been added below for better reference.

14. In 2018, cities including Seattle and San Francisco passed laws banning the use of plastic disposable straws because they are harmful to the environment (because plastic does not easily biodegrade) and to marine life (which ingest straws that end up in the ocean). Opponents point out that such bans may result in unintended monetary cost as well as external cost.

Which of the following describes potential costs that may arise as a result of these new laws? Select all that apply.

A. Alternatives to plastic straws cost at least 10 times more than the current price of plastic straws.

b. Straws made of alternative materials lack the flexibility of plastic straws. This makes it harder for people with disabilities, seniors, and children to use them.

C. Compostable straws are an alternative to disposable straws. For compostable straws to break down properly they need to be disposed of in a special commercial composter, an infrastructure that needs to be created.

D. Alternatives to disposable straws do not need fossil fuels to be recycled.

4 0
1 year ago
If a firm has a cash cycle of 30 days and an operating cycle of 64 days, what is its average payment period
elixir [45]

Answer: 34 days

Explanation:

The average payment period is a measure that is used to show the time the firm takes on average to pay its creditors.

The formula is:

Cash cycle = Operating cycle - Average payment period

30 = 64 - APP

APP + 30 = 64

APP = 64 - 30

APP = 34 days

5 0
3 years ago
Which is not a secondary consideration when locating a retail store
Maslowich

The answer is "access to good schools".

A retail store is a position of business normally claimed and worked by a retailer yet now and again possessed and worked by a producer or by somebody other than a retailer in which stock is sold fundamentally to ultimate customers. Good schools are something which cannot have secondary consideration.

5 0
3 years ago
ABC owns 80 percent of XYZ Corporation’s common stock. For the current financial year, ABC and XYZ reported sales of $500,000 an
agasfer [191]

Answer:

$284,000

Explanation:

                     ABC Corporation

       Consolidate Income Statement

For the year ended, 31 December, 20XX

Particulars               ABC                   XYZ                

Sales                     $500,000         320,000                        

Less: Expenses   <u>$(280,000)      $(240,000)</u>

Net Income          $220,000          $80,000                

Consolidated Income for the year under the proprietary theory approach for ABC corporation = $220,000 + (80,000 × 80%) = $220,000 + 64,000

= $284,000

According to the proprietary theory approach, the wholly-owned company will get the same percentage it owns the proportionate of that subsidiary company or companies.

4 0
3 years ago
(TCO C) Oceanside bank converts a dollar of equity into 10 cents of net income and has $9.50 in assets per dollar of equity capi
ZanzabumX [31]

Answer:

7.02%

Explanation:

(0.10/9.5)/0.15 = 7.02%

7 0
2 years ago
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