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Anni [7]
3 years ago
7

The Crunchy Potato Chip Company sells chips in boxes with a net weight of 846 grams per box . Each box contains ten individual 3

-ounce packets of chips. Product design specifications call for the packet-filling process average to be set at 853 grams so that the average net weight per box will be 853 grams. Specification width is set for the box to weigh 846±12grams. The standard deviation of the packet-filling process is 5 grams per box. The production manager has just learned that the packet-filling process average weight has dropped down to 846 grams. Calculate process capability index.
Business
1 answer:
Alinara [238K]3 years ago
7 0

Answer:

0.8

Explanation:

Given:

Number of chips contained in each box = 10

Weight of each packet of chips = 3 ounce

Average weight per box = 853 grams

Upper specification limit of the weight = 846 + 12 grams = 858 grams

Lower specification limit of the weight = 846 - 12 grams = 834 grams

Standard deviation, σ = 5 grams

Now,

Capability index = \frac{\textup{Upper limit - Lower limit}}{6\sigma}

or

Capability index = \frac{858 - 834}{6\times5}

or

Capability index = 0.8

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Malkin corp. has no debt but can borrow at 8.75 percent. the firm’s wacc is currently 16 percent, and there is no corporate tax.
Artyom0805 [142]

Answer:

a.

16%

b.

17.3%

c.

23.25%

d.

16%

Explanation:

WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.

As have the cost of capital, we need to calculate the cost of equity.

Cost of Capital = (Cost of Equity x Weightage of equity) + (Cost of Debt x Weightage of Debt)

a.

No Debt

16% = (Cost of Equity x 1 ) + (8.75% x 0)

16% = Cost of Equity + 0

Cost of Equity = 16%

b.

15% Debt and Equity is 85% (100%-15%)

16% = (Cost of Equity x 85% ) + (8.75% x 15%)

0.16 = (Cost of Equity x 0.85) + 0.013125

0.16 - 0.013125 = Cost of Equity x 0.85

0.146875 = Cost of Equity x 0.85

Cost of Equity = 0.146875 / 0.85 = 0.17279

Cost of Equity = 17.3%

c.

50% Debt and Equity is 50% (100%-50%)

16% = (Cost of Equity x 50% ) + (8.75% x 50%)

0.16 = (Cost of Equity x 0.50) + 0.04375

0.16 - 0.04375 = Cost of Equity x 0.50

0.11625 = Cost of Equity x 0.50

Cost of Equity = 0.11625 / 0.50 = 0.2325

Cost of Equity = 23.25%

d.

WACC for b and c are 16%

7 0
3 years ago
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Explanation:

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The figures suggest that Switzerland has almost double that of United States ($3.258) the highest taxable monthly income ($6,301).

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3 years ago
Customers should not expect a company to keep their information confidential true or false
Julli [10]
The answer would be false.
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1 year ago
Sawit Corporation, a manufacturer of woodworking tools, wants to introduce a new power screwdriver. To compete effectively, the
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Answer:

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4 0
3 years ago
Which one of the following groups of accounts only have debit balances
scoray [572]

Answer: b. Sales Returns, Wages, Machinery, Discount Allowed

Explanation:

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Machinery is an asset and assets have debit balances.

Discount allowed reduces the sales balance and as mentioned above, transactions that reduce sales go on the debit side so this has a debit balance as well.

4 0
3 years ago
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