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Yanka [14]
3 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]3 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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A ________ decision is best explained by the following: When a company’s finance department decides to go to the organizations u
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Answer:

Programmed decision

Explanation:

This is known as a programmed decision. Because it involves a structured and routine decision making to get a loan whenever revenues are less than its expenses.

A programmed decision is routine in nature and is handled by rules that have already been put in place. Such decisions have specific and clear goals, and are also well structured.

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3 years ago
A. Suppose there is a surge in consumer confidence that creates an increase in aggregate demand in the economy. The Federal Rese
grigory [225]

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a. Open market sale of $30 billion

b. Open market purchase of $15 billion

Explanation:

6 0
3 years ago
On December 31, Year 1, Taylor, Inc. signed a binding agreement with a bank for the refinancing of an existing note payable sche
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Answer

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3 years ago
What is most often used in the classroom to decrease behaviors that are being maintained by teacher attention?
Eva8 [605]

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Extinction.

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4 0
3 years ago
Consider two markets: the market for cat food and the market for dog food. The initial equilibrium for both markets is the same,
Yakvenalex [24]

Answer:

Elasticity of supply for dog food = 0.95

Explanation:

From the question, we have:

New quantity supplied of dog food = 107.0

Old quantity supplied of dog food = Initial equilibrium quantity = 21.0

New price = $8.75

Old price = Initial equilibrium price = $1.50

Generally, the formula for calculating the elasticity of supply is as

follows:

Elasticity of supply = Percentage change in quantity supplied / Percentage change in price ................ (1)

Where, based on the midpoint formula, we have:

Percentage change in quantity supplied of dog food = {(New quantity supplied of dog food - Old quantity supplied of dog food) / [(New quantity supplied of dog food + Old quantity supplied of dog food) / 2]} * 100 = {(107.0 - 21.0) / [(107.0 + 21.0) / 2]} * 100 = 134.375%

Percentage change in price = {(New price - Old price) / [(New price + Old price) / 2]} * 100 = {(8.75 - 1.50) / [(8.75 + 1.50) / 2]} * 100 = 141.463414634146%

Substituting the values into equation (1), we have:

Elasticity of supply for dog food = 134.375% / 141.463414634146% = 0.94989224137931

Approximated to 2 decimal places, we have:

Elasticity of supply for dog food = 0.95

6 0
2 years ago
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