Answer:
Indifferent selling price =$67 per units
Explanation:
The selling at which Mel rose would be economically be indifferent between accepting and rejecting the special order from Moore is that that equates the relevant cost of making to the revenue from t
Relevant variable cost making
= 22.80 + 18.60 + 14.20 + (75%×12.80) = $65.2
$
Variable cost of special order (= $65.2
× 3,500)= 228,200
Cost of machine <u>6,300</u>
Total relevant cost of special order <u>234,500
</u>
<u>
</u>
The price at which Melrose would be indifferent
= total relevant cost/ number of units
$234,500/3500 units
=$67 per units
Answer:
B) Revenue Passenger Miles (RPM)
Explanation:
Revenue passenger miles are the most relevant metrics i.e. used for transportation. It reflects how many numbers of miles it traveled by a particular passenger. It considered the efficiency and the profitability earned by the company based on the number of passengers. The payment could depend on the number of miles chosen by the passenger
So in the given situation, option B is most relevant and hence it is the right answer
Answer:
COnsider the following calculations
Explanation:
1. $
Annual Savings in Part-time help 6300
Added Contribution Margin from expanded sales 2600x1.50 3900
Annual Cash Inflows 10200
2.
NPV @ 5%
= Present Value of Cash inflows - Present Value of Cash outlfows
= [10200x 5.076] - 47300
= $4475
NPV @ 10%
= Present Value of Cash inflows - Present Value of Cash outlfows
= [10200x4.355] - 47300
= -$2779
Internal Rate of Return = Lower Rate + [Lower rate NPV/ (Lower rate NPV - Higher rate NPV] x Difference in rates
= 5 + [4475 / (4475+2779)] x 5
= 8%
3. NPV @ 5%
= Present Value of Cash inflows - Present Value of Cash outlfows
= [(10200x 4.355) + (12000x0.564)] - 47300
= $3889
NPV @ 15%
= [(10200x 3.784) + (12000x0.432)] - 47300
= -$3519
Internal Rate of Return = Lower Rate + [Lower rate NPV/ (Lower rate NPV - Higher rate NPV] x Difference in rates
= 10 + [3889 / (3889+3519)] x 5
= 13%
Answer:
The 21,100 units were started through company during the month
Explanation:
The number of units were started through company during the month is computed as:
Number of units were started = Transferred out units - Ending work in progress units
where
Transferred out units is 24,600
Ending work in progress units is 3,500
Putting the values above:
Number of units were started = 24,600 - 3,500
= 21,100
Therefore, 21,1600 units were started through company during the month.
Note: The beginning work in progress will be considered as number of units in started is computing.