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schepotkina [342]
2 years ago
13

Information on Psi Phi Inc.âs three products are as follows: A B C Unit sales per month â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦

⦠1,600 3,000 1,600 Selling price per unit â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦. $10.00 $15.00 $8.00 Variable cost per unit â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦... (10.40) (12.00) (4.00) Unit contribution margin â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦.. $(0.40) $3.00 $4.00 Required: Determine the effect of each of the following situations would have on monthly profits. Each situation should be evaluated independently of all others. a) Product A is discontinued. b) Product A is discontinued and the subsequent loss of customers cause sales of Product B to decline by 200 units. c) The selling price of Product A is increased to $11.00 with a sales decrease of 300 units. d) The price of Product B is increased to $16.00 with a resulting sales decrease of 400 units. However, some of the customers shift to Product A; sales of Product A increase by 280 units. e) Product A is discontinued, and the plant in which Product A was produced is used to produce Product D, a new product. Product D has a unit contribution margin of $0.60. Monthly sales of Product D are predicted to be 1,200 units. f) The selling price of Product C is increased to $9.00 and the selling price of Product B is decreased to $14.00. Sales of Product C decline by 400 units, while sales of Product B increase by 600 units.
Business
1 answer:
VikaD [51]2 years ago
4 0

Answer:

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Explanation:

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The opportunity cost of an item is a. what you give up to get that item. b. usually less than the dollar value of the item. c. t
Jobisdone [24]

Answer: a

Explanation:

Opportunity costs represent the benefits an individual, investor or business misses out on when choosing one alternative over another. While financial reports do not show opportunity cost, business owners can use it to make educated decisions when they have multiple options before them.

Because by definition they are unseen, opportunity costs can be easily overlooked if one is not careful. Understanding the potential missed opportunities foregone by choosing one investment over another allows for better decision-making.

Opportunity cost analysis also plays a crucial role in determining a business's capital structure. While both debt and equity require expense to compensate lenders and shareholders for the risk of investment, each also carries an opportunity cost. Funds used to make payments on loans, for example, are not being invested in stocks or bonds, which offer the potential for investment income. The company must decide if the expansion made by the leveraging power of debt will generate greater profits than it could make through investments.

6 0
2 years ago
Which of the following journal entries represents an increase in accounts payable correctly
PtichkaEL [24]

Answer:

C) Inventory xxx Accounts Payable xxx

Explanation:

Accounts payable is a liability, and a liability always has a credit balance, as the amount is due to them. The company needs to pay them back.

Accordingly the company buys inventory and the inventory is an asset and thus, the company will debit the inventory account.

Whenever any purchases are made, or any service is utilized on credit then the company creates an accounts payable as a liability as against it.

8 0
2 years ago
Creative Sound Systems sold investments, land, and its own common stock for $31.0 million, $15.1 million, and $40.2 million, res
KatRina [158]

Answer:

Creative Sound Systems

Net cash flows from investing activities:

Cash inflow from sale of investments                     $31 million

Cash inflow from sale of land                                $15.1 million

Cash outflow from purchase of equipment        ($25.1 million)

<u>Cash outflow from purchase of patent                ($12.1 million)</u>

Net cash flows provided by investing activities    $8.9 million

Creative Sound Systems

Net cash flows from financing activities:

Cash inflow from issuing common stocks              $40.2 million

<u>Cash outflow from purchase treasury stock          ($21.1 million)</u>

Net cash flows provided by financing activities     $19.1 million

6 0
2 years ago
A process that produces computer chips has a mean of .04 defective chip and a standard deviation of .003 chip. The allowable var
FrozenT [24]

Answer:

a) 0.667

b) Yes

Explanation:

Data provided in the question:

Mean = 0.04 chip

Standard deviation, s = 0.003 chip

Lower Specification Limit, LSL  = 0.034

Upper Specification Limit, USL = 0.046

Now,

a) Capability Index = ( USL - LSL ) ÷ ( 6 × s )

or

Capability Index = ( 0.046 - 0.034 ) ÷ ( 6 × 0.003 )

= 0.667

b) Cpk = min( [( USL - Mean) ÷ ( 3s ) , ( Mean - LSL) ÷ ( 3s ))

or

Cpk = min( ( 0.046 - 0.04) ÷ (3 × 0.003 ),  ( 0.04 - 0.034 ) ÷ ( 3 × 0.003 ))

or

Cpk = min( ( 0.046 - 0.04) ÷ (3 × 0.003 ),  ( 0.04 - 0.034 ) ÷ ( 3 × 0.003 ))

or

Cpk = min( 0.667, 0.667 )

Therefore,

Cpk = 0.667

as Cp and Cpk are equal

Hence, it is ideal condition and process is capable

3 0
2 years ago
All statements below are true about a matrix organization structure except:
mr Goodwill [35]

Answer:

Option D One weakness is that multiple dimensions of a business are not integrated well with a matrix organization

Explanation:

In the matrix organization, the company has the tendency to integrate its operations in a manner that brings cost savings and other benefits for the organization. This also helps in controlling the resource allocation which means saying that the operations are not better integrated in a matrix organization is totally incorrect.

3 0
3 years ago
Read 2 more answers
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