1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Oksi-84 [34.3K]
3 years ago
11

Harvey automobiles uses a standard part in the manufacture of several of its trucks. the cost of producing​ 90,000 parts is​ $13

0,000, which includes fixed costs of​ $70,000 and variable costs of​ $60,000. the company can buy the part from an outside supplier for​ $3.50 per​ unit, and avoid​ 30% of the fixed costs.
Business
1 answer:
Mazyrski [523]3 years ago
8 0

Answer:

If Harvey decides to purchase the parts instead of manufacturing them, their total costs will increase by $164,000

Explanation:

currently Harvey's costs are:

variable costs = $70,000

fixed costs = $60,000

total $130,000

total cost per unit = $130,000 / 90,000 units = $1.44 per unit

if Harvey decide to outsource the production of the parts:

variable costs = 90,000 x $3.50 = $315,000

decrease in fixed costs = $70,000 x -30% = -$21,000

total costs = $294,000

If Harvey decides to purchase the parts instead of manufacturing them, their total costs will increase by ⇒ $294,000 - $130,000 = $164,000

You might be interested in
Your company builds cars in Texas. You purchase metal from a company in Wisconsin. You are part of the _________ segment of the
kramer

Answer:

You are part of the internal segment of the supply chain, and the metal company is part of the upstream supply chain.

The internal supply chain relates to processes within the company, and the upstream supply chain refers to the supply of raw materials and other input to be made into output in the company.

If a car-building company in Texas imports steel from Wisconsin, then, the providers in Wisconsin are the upstream supply chain.

4 0
3 years ago
Suppose the U.S. Treasury announces plans to issue $50 billion of new bonds. Assuming the announcement was not expected, what ef
Sidana [21]

Answer:

Prices would decline and interest rates would rise

Explanation:

This is because the market will be flooded with additional 50 billion dollars of bond increasing the supply causing the price to fall. Interest rate are inversely proportional to prices thus interest rate will rise.

4 0
3 years ago
Emarpy Appliances Inc. wants to determine the optimal production policy for their best selling refrigerator. The demand for this
monitta

Answer:

Q' = 213.80

Explanation:

P(d): production rate per day = 200

Ic: Installation cost = 120

D: Demand = 8000

D(d): demand rate per day = 32

Uc: Unit cost (holding) = 50

Applying into Production order quantity model formula

Q'= \sqrt{\frac{2*D*Ic}{(1 - \frac{D(d)}{P(d)}) * Uc } }  = \sqrt{\frac{2*8000*120}{(1 - \frac{32}{200})*50 } }  = 213.80

7 0
3 years ago
The stadium manager has been tasked with maximizing total revenue (bound by current capacity, of course). What price should she
Andreyy89

Answer:

To maximize revenue based on current capacity, The Stadium Manager should set Premium Price for tickets.

Explanation:

If your aim is to maximize revenue based on the capacity of the stadium, Premium Price is your surest best.

Premium pricing is a type of pricing which involves establishing a price higher than your competitors to achieve a premium positioning.

You will attract the right kind of customers and when you set a premium price, you have raised the bar of expectation from your customers.

This will push the stadium to upgrade their customer service, their operations and delivery.

If this method is carried out properly by establishing club memberships and other marketing incentives, you will retain these premium customers and maximize revenue.

4 0
3 years ago
When it comes to fraud committed by an organization’s employees, the single most effective fraudprevention technique is _______.
Maurinko [17]

Answer:

C

Explanation:

5 0
3 years ago
Other questions:
  • Which of the following options has drastically reduced the costs of operating and transacting on a global​ scale?
    7·1 answer
  • Harrison Industries began July with a finished-goods inventory of $48,000. The finished-goods inventory at the end of July was $
    10·1 answer
  • Vextra Corporation is considering the purchase of new equipment costing $43,500. The projected annual cash inflow is $12,700, to
    7·1 answer
  • Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when
    7·1 answer
  • SBD Phone Company sells its waterproof phone case for $108 per unit. Fixed costs total $227,000, and variable costs are $48 per
    11·1 answer
  • Which of the following constitutes an implicit cost to company A
    7·1 answer
  • Assume that tea and lemons are complements and that coffee and tea are substitutes. An effective price ceiling on coffee would c
    6·1 answer
  • The common stock of Federal Logistics is selling for $57.56 per share. The company pays a constant annual dividend and has a tot
    5·1 answer
  • Gottschalk Company sponsors a defined benefit plan for its 100 employees. On January 1, 2020, the company's actuary provided the
    15·1 answer
  • Free
    13·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!