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
Phantasy [73]
3 years ago
11

A manager is trying to decide whether to purchase a certain part or to have it produced internally. Internal production could us

e either of two processes. One would entail a variable cost of $17 per unit and an annual fixed cost of $200,000; the other would entail a variable cost of $14 per unit and an annual fixed cost of $240,000. Three vendors are willing to provide the part. Vendor A has a price of $20 per unit for any volume up to its maximum capacity of 30,000 units. Vendor B has a price of $22 per unit for demand less than 1,000 units, and $18 per unit for larger quantities. Vendor C offers a price of $21 per unit for the first 1,000 units, and $19 per unit for additional units. a. If the manager anticipates an annual volume of 10,000 units, which alternative would be best from a cost standpoint? For 20,000 units, which alternative would be best? (Omit the "$" sign in your response.)
Business
1 answer:
Sergio [31]3 years ago
5 0

Answer:

For both 10,000 units and 20,000 units, the best alternative is Vendor B

Explanation:

Using the information provided in the question, we can write the following:

Annual Volume of 10,000 units

Internal Alternative 1

Variable costs = 170,000 (we multiply the variable cost per unit by total units)

Fixed costs = 20,000

Total costs = 370,000

Internal Alternative 2

Variable costs = 140,000

Fixed costs = 240,000

Total costs = 380,000

Vendor A

Total cost = 200,000 (we simply multiply the price by the quantity)

Vendor B

Total cost = 180,000

Vendor C

Total cost = 190,000

The cheapest option is Vendor B

Now for the 20,000 units:

Internal Alternative 1

Variable costs = 340,000

Fixed costs = 200,000

Total costs = 540,000

Internal Alternative 2

Variable costs = 280,000

Fixed costs = 240,000

Total costs = 520,000

Vendor A

Total cost = 400,000

Vendor B

Total cost = 360,000

Vendor C

Total cost = 380,000

Therefore, Vendor B is once again, the cheapest alternative.

You might be interested in
Prior to the launch of its financial service, Mint made extensive use of ______ which helped search engines view this business a
Dafna1 [17]

Answer:

Blogs

Explanation:

Blogs are information websites that provides relevant information for a target group in a diary style arranged according to date.

The most recent posts appear first in the website.

Mint has used blogs to provide relevant information to users.

Search engines analyse the contents of websites to determine of they are relevant sources of information.

Mint's blogs have help search engines identify the company as a relevant source of personal financial topics

8 0
3 years ago
Business letters can be used to request information or action. Familiarize yourself with the organization of these direct reques
Leni [432]

The body of a direct request letter should request action with an end date.

Direct Request Letter- A petition filed by an individual in a tribunal of this state in a case involving an obligee, an obligor, or a child is referred to as a direct request. In business letters, you can ask for information or a specific action. Learn how these direct request letters are structured so you can effectively convey your goals and get the results you want.
Gather information about your request.
Form an outline
Identify yourself
Make your demand
Give a justification for the request.
Offer to supply extra details
Thank you for your time, and end the letter.
For more information about the Direct Request Letter Please refer to brainly.com/question/15279207
#SPJ4

3 0
1 year ago
Like many firms in the electronics industry, Godin Manufacturing experiences ups and downs in the demand for its high-tech produ
Crazy boy [7]

Answer:

The answer is B) "lower the prices that customers pay."

Explanation:

Actually, to increase capacity during high demands, the company do not need to lower the prices that customers pay but rather in crease the prices. According to law of demand and supply, the higher the demand, the more the price. Also, the company may also open another new branch for more production, approve overtime work and wages for employers, create more shifts and even subcontract part of the production to another company to ensure faster process but with same quality.

6 0
3 years ago
Janson Corporation Co.'s trial balance included the following account balances at December 31, 2021: Accounts receivable $14,000
11111nata11111 [884]

Answer:

$88,450 should be included in the current assets section of Janson’s December 31, 2021, balance sheet

Explanation:

Current Assets: The current assets are those assets which are converted into cash within one year.

Examples - Accounts receivable, inventory, prepaid insurance, cash, etc.

The computation of the total current assets is shown below:

= Accounts receivable + Inventory + Prepaid insurance + Short term investment

= $14,000 + $40,000 + $3,650 + $30,800

= $88,450

The amount of prepaid insurance which is given in the question is for two years. We have to compute for one year so we divide the total amount by number of years

= $7,300 ÷ 2 years

= $3,650

6 0
3 years ago
Of the 200 employees at Company A, 70 work part-time and the rest work full-time. If 140 of the employees like their jobs and 10
Sergeu [11.5K]
130 full time workers like there job
4 0
3 years ago
Other questions:
  • Assume Royal Palm Corp., an equipment distributor, sells a piece of machinery with a list price of $800,000 to Arch Inc. Arch In
    10·1 answer
  • Nick, a skilled welder, had been working for 12 years in a factory that recently closed. This has caused high unemployment in hi
    14·1 answer
  • Mary transferred a life estate in her home to John based on the life of Ned Green. Mary's interest in the property is known as a
    11·1 answer
  • Some of the mangos from your neighbor's mango tree drop into your yard. You don't like mangos and the fallen mangos make it hard
    6·1 answer
  • If the nominal annual interest rate is 12% compounded quarterly, what is the effective annual interest rate?
    10·1 answer
  • Items held for sale in the normal course of business are referred to as
    6·1 answer
  • Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm’s capacity. If he adds one mor
    8·1 answer
  • The Meyers Motor Company to­day is very different from the same company of 1965, yet many essential characteristics remain so th
    14·1 answer
  • In the context of downsizing in an organization, allowing a worker to remain in a position for a period of time after she or he
    15·1 answer
  • Pepper Corporation owns 75 percent of Salt Company's voting shares. During 20X8, Pepper produced 50,000 chairs at a cost of $79
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!