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Ronch [10]
2 years ago
15

The Green Machine Manufacturing Company has the option to make or buy a component part for one of its lawnmowers. The annual req

uirement is 25,000 units. A supplier is able to supply the parts for $12.25 per piece. Green Machine estimates that it will cost $700 to prepare the contract with the supplier. To make the parts in-house, Green Machine must invest $100,000 in capital equipment. They estimate it will cost $9.00 per piece to produce the part in-house. Carry all calculations out to two decimal places. What is the breakeven quantity
Business
1 answer:
Delvig [45]2 years ago
4 0

Answer:

30,769.23

Explanation:

At which point the price doing the component matches the purchased amount of 12.25

100,000 / Q + 9 = 12.25

100,000 / Q = 12.25 - 9

Q = 100,000 / 3.25 = 30,769.23

At this point the cost for producing the component  or bring them from abroad has the same utility (indifference zone) below this area, it is more profitable to keept outsorcing while above it, it will expense much more.

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Comet Company is owned equally by Pat and his sister Pam, each of whom hold 100 shares in the company. Comet redeems 50 of Pam's
lesantik [10]

Answer:

Total E&P = $ 160000

Total voting Right Sold = 50/ (100+100) = 25%

Reduction of E& P due to exchange = Total E&P*Total voting Right Sold

Reduction of E& P due to exchange = 160000*25%

Reduction of E& P due to exchange = 40000

Reduction of E& P Lower of Total E&P*Total voting Right Sold or Amount realised

Reduction of E& P Lower of 40000 or (50*1000)

Reduction of E& P Lower of 40000 or 50000

Answer

A reduction of $40,000 in E&P because of the exchange.

7 0
3 years ago
Vaughn Manufacturing can sell all the units it can produce of either Plain or Fancy but not both. Plain has a unit contribution
Annette [7]

Answer:

Vaughn should produce Plain as it makes greater profit.

Explanation:

Vaughn Manufacturing can sell all the units it can produce of either Plain or Fancy but not both.

Plain has a unit contribution margin of $86 and takes two machine hours to make and Fancy has a unit contribution margin of $111 and takes three machine hours to make.

There are 2400 machine hours available to manufacture a product.

Profit per machine hour for Plain

= \frac{86}{2}

= $43

Profit per machine hour for Fancy

= \frac{111}{3}

= $37

The difference in profit

= $43 - $37

= $6

Plain makes $6 more profit per machine hour than Fancy.

7 0
3 years ago
Which of the following choices correctly depicts whether McDonald's, the University Wisconsin, and Apple Inc. would have a need
Crazy boy [7]

Answer:

a. The division of activities into unit level, batch level, product sustaining level and facility level categories is commonly known as cost.

Explanation:

The managerial accounting is important for any service business. McDonalds have service business and they run on zero tolerance for disruption in consumer service. Management accounting enables to identify cost for product sustaining and batch producing.

3 0
3 years ago
Katie can mitigate the problem without alerting the new owners or let them know about this new disclosure and possibly delay or
slava [35]

Answer:

Ethical

Explanation:

The ethical dilemma means the uncertainties form that developed due to violation of the moral standard that would be held in our life

It would be considered right when she tells to the client regrading the mice problem but she is discouraged as she know that if she do this than she would mess up with the sales that decrease the salary

So this given situation represent an ethical dilemma

7 0
2 years ago
Suppose a competitive firm has​ cost, C​ = ​(0.002q3​) ​+ (22q)​ + 750, marginal​ cost, MC​ = 0.006q2​ + 22, and​ revenue, R​ =
aniked [119]

Answer:

 Options B and C are correct.

  • Marginal profit is negative.
  • Profit is positive.

Explanation:

At q = 150

R = 80q = 80(150) = 12,000

C = 0.002(150)3 + 22(150) + 750 = 6750 + 3300 + 750 = 10,800

R > C so first is incorrect.

MR = 80

MC = 0.006(150 x 150) + 22 = 135 + 22 = 157

MC > MR so B is correct.

Profit = TR - TC = 80(150) - 0.002(150)3 - 22(150) - 750 = 12000 - 10800 = 1200

Profit is positive.

Marginal profit = MR - MC = 80 - 157 = - 77

MR is Negative

3 0
2 years ago
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