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ankoles [38]
3 years ago
11

Chocoheaven processes cocoa beans into cocoa powder at a processing cost of $ 10,100 per batch. Chocoheaven can sell the cocoa p

owder as​ is, or it can process the cocoa powder further into chocolate syrup or boxed assorted chocolates. Once​ processed, each batch of cocoa beans would result in the following sales​ revenue:
Has the president made the right or wrong decision? Explain your answer. Be sure to include the correct financial analysis in your response.
Begin by completing the following incremental analysis to compare selling the cocoa powder as is with processing it further. (For amounts with a value of $0, make sure to enter "O" in the appropriate input box.)
Sell as Sell as Sell as Boxed
Cocoa Chocolate Assorted
Powder Syrup Chocolates
Revenue
Less: Additional processing costs
Net benefit
Cocoa powder $ 14,000
Chocolate syrup 104,000
Boxed assorted chocolates 202,000
The cost of transforming the cocoa powder into chocolate syrup would be $70,000. Likewise, the company would incur a cost of $176,000 to transform the cocoa powder into boxed assorted chocolates. The company president has decided to make boxed assorted chocolates due to its high sales value and to the fact that the cocoa bean processing cost of S9,500 eats up most of the cocoa powder profits.
Business
1 answer:
sp2606 [1]3 years ago
5 0

Answer:

No, it is not the right decision. The best decision that will bring maximum profit to the company is to sell chocolate syrup.

Explanation:

Profit = Sales revenue - Processing Cost

1-The Cocoa powder result in $3,900 profit ($14,000 - $10100) to the Choco Heaven company

2- If the company makes Chocolates syrup it will get profit of $34,000 ($104,000 - $70,000)

3- f the company makes Boxed assorted Chocolates it will get profit of $26,000 ($202,000 - $176,000)

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sergiy2304 [10]
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Therefore, the equity multiplier of XYZ inc is given by 1 + 0.62 = 1.62
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3 years ago
Rehmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.06 direct labor
Phoenix [80]

Answer:

Results are below.

Explanation:

Giving the following information:

Each unit of output requires 0.06 direct labor-hours.

The direct labor rate is $8.00 per direct labor-hour.

The production budget calls for producing 5,300 units in June and 5,800 units in July.

<u>Direct labor budget June:</u>

Direct labor hours= 5,300*0.06= 318

Direct labor cost= 318*8= $2,544

<u>Direct labor budget July:</u>

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3 0
3 years ago
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nadya68 [22]

Answer:

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Explanation:

Based on the laws of demand, if the price of the good rises the quantity demanded of that good would be reduced keeping other things constant and if the price of the good declines the quantity demanded of that good would be raised keeping other things constant.

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Answer:

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