1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Galina-37 [17]
4 years ago
14

A company can manufacture a product with off-the-shelf hand tools. Fixed manufacturing costs are $1200 for tools and $1.60 manuf

acturing cost per unit. As an alternative, an automated manufacturing system will cost $13400 with a $0.65 manufacturing cost per unit. The annual anticipated volume is 4200 units. Determine the break-even point. (years)
Business
1 answer:
mixer [17]4 years ago
7 0

Answer:

3.06 years

Explanation:

The break-even point is when the total revenue equals the total production costs. In case of the change in manufacturing plan, the break even point is when the additional fixed costs are equal to the savings from the reduced manufacturing costs

Total Manufacturing Costs

<em>Opt 1: Hand Tool Method</em>

Cost = 1.60$/unit*4200unit/year*xyear

Cost = $6720x

<em>Opt 2: Automated System</em>

Cost = 0.65$/unit*4200unit/year*xyear

Cost = $2730x

Additional Fixed Costs

Additional Fixed Cost = $13400 - $1200

Additional Fixed Cost = $12200

Break Even Point

Additional Fixed Cost = Opt 1 Manufacturing Cost - Opt 2 Manufacturing Cost

$12200 = $6720x - $2730x

12200 = 3990x

x = 3.06 years

Assumptions:

  1. The annual volume is the same every year
  2. The tools/system costs are a one time costs
  3. No depreciation of the system has been considered
  4. The manufacturing cost per unit is the same every year
  5. There are no other additional costs/expenses
You might be interested in
Without ________ control, a business may fail. 7 letter word
erica [24]
Quality. The answer is quality
3 0
4 years ago
When auto manufacturer BMW purchased the RollsminusRoyce brand​ name, BMW had to hire and train a new staff of assembly workers.
lord [1]

Answer:

B. $ 50 comma 400 unfavorable

Explanation:

The formula to compute the labor efficiency variance is shown below:

= Standard labor rate ×  (Standard hours for actual output - Actual hours)

where,

Standard labor rate is $28

Standard hours for actual output would be

= 1,600 cars × 3.25 direct labor hours per car

= 5,200 hours

And, the actual hour is 7,000 hours

Now put these values to the above formula  

So, the value would equal to

= $28 × (5,200 hours - 7,000 hours)

= $50,400 unfavorable

7 0
3 years ago
During this stage of résumé review, employers use the résumé to guide interview questions
mr Goodwill [35]

Answer:

<h2>Yes, the resume give HR / Technical person to understand and spot questions from the resume.</h2>

Explanation:

Though the question is little incomplete, I would try to answer assuming about the interview phases especially this resume review.

Resume is the first thing which the interviewer would see before they see you (Eg. Resume from job portal, resume received through friends or other employee referral, resume received through job fairs, etc)

So the interviewer

  • can find whether the information given in the resume is true by spotting questions from that and testing your answer in the personal interview.
  • can also understand how your work and the organization's expectation meet.
  • can choose the best candidate by looking at the resume itself.
8 0
3 years ago
Net loss means expenses is _____ gross profit?
sveticcg [70]

Answer:

net loss means expenses is ____ gross profit?

a. <em>g</em><em>r</em><em>e</em><em>a</em><em>t</em><em>e</em><em>r</em><em> </em><em>t</em><em>h</em><em>a</em><em>n</em><em> </em>

<em><u>→</u></em><em><u>b</u></em><em><u>.</u></em><em><u> </u></em><em><u>l</u></em><em><u>e</u></em><em><u>s</u></em><em><u>s</u></em><em><u> </u></em><em><u>t</u></em><em><u>h</u></em><em><u>a</u></em><em><u>n</u></em>

<em>c</em><em>.</em><em> </em><em>e</em><em>q</em><em>u</em><em>a</em><em>l</em><em>s</em>

<em>d</em><em>.</em><em> </em><em>n</em><em>o</em><em>n</em><em>e</em><em> </em><em>o</em><em>f</em><em> </em><em>t</em><em>h</em><em>e</em><em> </em><em>a</em><em>b</em><em>o</em><em>v</em><em>e</em>

Explanation:

<em><u>#</u></em><em><u>C</u></em><em><u>a</u></em><em><u>r</u></em><em><u>r</u></em><em><u>y</u></em><em><u> </u></em><em><u>O</u></em><em><u>n</u></em><em><u> </u></em><em><u>L</u></em><em><u>e</u></em><em><u>a</u></em><em><u>r</u></em><em><u>n</u></em><em><u>i</u></em><em><u>n</u></em><em><u>g</u></em>

⤵

Choi Eunbyul <3

3 0
2 years ago
Capital budgeting is a tool that explicitly incorporates the time value of money in decisions involving significant long-term in
Elena L [17]

Answer: True

Explanation: Capital budgeting is a tool used for evaluating the profitability of long term investments by the company. In the process of capital budgeting, the incremental expected cash inflows are compared with the initial cash outflow of the project using time value of money analysis.

In time value of money analysis the expected cash inflows are discounted back to the present time by using a particular rate, and then that present value is deducted from outflow to ascertain the profit.

4 0
3 years ago
Other questions:
  • ​Dandy's Fun Park is evaluating the purchase of a new game to be located on its Midway. It has budgeted​ $40,000 for this purcha
    10·1 answer
  • Zwilling Corporation’s comparative balance sheet for current assets and liabilities was as follows:
    11·1 answer
  • Match the scenarios with the economic concepts they illustrate.
    14·2 answers
  • The Unique Bookshelf Company is considering the purchase of a custom delivery van costing approximately $50,000. Using a discoun
    5·1 answer
  • What is it called when you are able to touch and feel a product?
    10·1 answer
  • The European Union and the United States are trading partners. (a) If the current account balance is zero, will an increase in U
    12·1 answer
  • If a check correctly written and paid by the bank for $646 is incorrectly recorded on the company's books for $664, the appropri
    7·1 answer
  • Determine the starting current (LRC)
    8·1 answer
  • Please help me to answer these questions
    13·1 answer
  • Lewis is responsible for all installation activities at a large utility company. He would be considered a _______ manager.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!