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Yanka [14]
4 years ago
10

Suppose that a manufacturer needs to produce a custom aluminum housing for a special customer order. Because it currently does n

ot have the equipment necessary to make the housing, it would have to acquire machines and tooling at a fixed cost (net of salvage value after the project is completed) $170,000. The variable cost of production is estimated to be $30 per unit. The company can outsource the housing to a metal fabricator at a cost of $43 per unit. The customer order is for 14,000 units. What should it do? The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.
Business
1 answer:
insens350 [35]4 years ago
8 0

Answer:

It is more convenient to produce in house.

Explanation:

Giving the following information:

It would have to acquire machines and tooling at a fixed cost (net of salvage value after the project is completed) $170,000. The variable cost of production is estimated to be $30 per unit. The company can outsource the housing to a metal fabricator for $43 per unit. The customer order is for 14,000 units.

Make in house:

Total cost= 30*14,000 + 170,000= $590,000

Buy= 43*14,000= $602,000

It is more convenient to produce in house.

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Assume that a family spends 35% of its income on housing, 20% on travel-related expenses, 10% on utilities, 25% on health care,
iogann1982 [59]

Answer:

We need the slope of each category.

Explanation:

Having the amount of each category is not enough to find the responsive of each one of them to a change in their prices, we need a measure called elasticity, this indicator measures the responsive of a product to a change in its price.

5 0
3 years ago
Firm A is a new producer in the market for good X, which is characterized by linear demand and supply curves. Initially, to attr
Dafna1 [17]

Answer:

E. He is not accounting for the new consumers who will benefit from being able to consume the product.

Explanation:

With the increase in price of product, Demand equals Supply i.e., no shortage exists in the market. Thus, the equilibrium level is achieved at price of $ 10. Further, The most important advantage of increasing the price in the given question is that shortage which exists earlier no longer remains now which will benefit all the consumers including some new consumers as they will able to get the sufficient number of quantities of product for the consumption now. Financial Head of Firm is ignoring the new consumers who will benefit from able to consume the product.

Therefore, He is not accounting for the new consumers who will benefit from able to consume the product.

3 0
3 years ago
Production-based accounting is used to estimate gdp by​ ____________.
aliina [53]
B.
adding up the incomes received by all the resources that contributed to production.

Or

D.
all of the above.
6 0
3 years ago
If a firm accepts less than all of its prospective projects with positive NPVs when evaluated at their own risk-adjusted costs o
gtnhenbr [62]

Answer: True

Explanation:

  Yes, the given statement is true that the employing capital rationing is one of the process in which it placing some restriction on the investment amount of the project in an organization.

 In the capital rationing strategy, if the company accepts less amount from all its prospective projects along with some positive net profit value (NPVs) the it is evaluated on the basis of their own risk.

 The employ capital rationing helps in making various types of decisions related to investment for the company and in this system only limited projects are taken due to the limitation of the resources.  

 Therefore, The given statement is true.

3 0
3 years ago
Question. Draw a marginal revenue curve of a perfectly competitive firm and explain why the marginal revenue of a perfectly comp
svp [43]

If AR is constant, MR is equal to AR. Both are indicated by the same horizontal straight line(a situation of perfect competition)

<h3>What is the marginal revenue curve for a perfectly competitive firm?</h3>
  • Marginal revenue for a company with perfect competition is the same as average revenue and pricing.
  • This suggests that at values bigger than the average variable cost, the firm's short-run supply curve is its marginal cost curve.
  • The company closes if the price falls below the average variable cost.

Marginal revenue is the change in total revenue when one more unit of a commodity is sold.

MR= change in TR/change in quantity sold

Average revenue refers to revenue per unit of output.

AR=TR/Q

Relationship between AR and MR:

If AR is constant, MR is equal to AR.

Both are indicated by the same horizontal straight line(a situation of perfect competition)

To learn more about marginal revenue, refer to

brainly.com/question/13444663

#SPJ4

8 0
1 year ago
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