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3 years ago

Is a production process that generates customized products in high volumes?

1 answer:

4 0

The production process is called Mass Customization and it is defined as an example of the assemble-to-order strategy, where a firm's flexible processes generate customized products or services in high volumes at reasonably low costs. Basically it combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.

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Erie company has 500 units of capacity for their traditional product, Emu, and buys one point of automation. If Erie company’s c

11111nata11111 [884]

Answer: 2 years

Explanation:

The payback period is the amount of time that is needed for the required cash inflow of a project to offset the initial cash outflow that the business offsets. The payback period is when the initial outlay of an investment is recovered. There are two different methods used to calculate payback period. We have the average method and the subtraction method.

In the above question, the payback period is solved as follows:

Labour cost decreases by 10% for each unit.

Therefore,

= $10 × 10%

= $10 × 0.1

= $1 per unit.

In order to recover $2000, the business needs to sell the following;

= 2000/1

= 2000units.

If Eric sells 1000 units per year of Emu, it will take:

2000/1000= 2years

In conclusion, the payback period of the investment is 2 years.

8 0

3 years ago

a. She has negotiated a sales price of $46,585 and she has a $15,000 down payment. She is eligible for the full $10,000 cash reb

nirvana33 [79]

Answer: Elaine should take Dealership's financing option.

Explanation:

Option A

Car Sale Price = $46 585

Down Payment = $15000

Interest rate = 0%

Period = 66 months

Value of Dealer Financing = $46585 - $15000 = $31585

Option 2.

Elaine takes the loan to pay for the car

R = 3.24%

Car price = Loan Amount = $46585

Period (n) = 72 months

Value of Option 2 Loan Financing = Loan Amount (1 + r)^n

Value of Option 2 Loan Financing = $46585(1 + 0.0324^/12)^72

Value of Option 2 Loan Financing = $46585(1 + 0.0027)^72

Value of Option 2 Loan Financing = 56566.482756

Value of Option 2 Loan Financing = $56566.48

Elaine receives a Cash rebate of $10 000

Overall Value of option 2 = $56566.48 - $10 000 = $46566.48

Let us assume Elaine Pays the Down Payment of $15000 AND take A Loan to finance the rest of the Car amount

Car sale price = $46585 - $15000 = $31585

Loan Amount = $31585

Option 2 Loan Financing with down Payment

Option 2 Loan Financing = $31585(1 + 0.0324^/12)^72 + $15000

Option 2 Loan Financing = $31585(1+0.0027)^72 + $15000

Option 2 Loan Financing = 38352.524586 + $15000

Option 2 Loan Financing = $53352.524586

Elaine Receives a Cash Rebate of $10 000

Value of Option 2 with down payment = $53352.524586 - 10 000

Value of Option 2 with down payment = $43352.524586

Value of Option 2 with down payment = $43352.53

When Elaine pays a down payment and takes a loan of $31585, the overall finance is valued at $43352.53, When Elaine takes a loan for the entire car amount the Value of option 2 finance is $46566.48.

Dealership Option Financing Value is $31585. Elaine should take Dealership's financing option

3 0

3 years ago

A company is 40% financed by risk-free debt. the interest rate is 10%, the expected market risk premium is 8%, and the beta of t

Evgen [1.6K]

What is the question? i need more details to helpp you properly

6 0

3 years ago

Frasier Cabinets wants to maintain a growth rate of 5 percent without incurring any additional equity financing. The firm mainta

KATRIN_1 [288]

Answer:

Option E is correct. Pay out ratio is 73.74 %

Explanation:

Payout ratio shows how much portion of the net earning the company pay to its shareholders in form of cash dividend. Higher pay out ratio implies that company pay large portion of its earning to shareholder.

Mathematically, pay out ratio is = 1 - Retention Ratio ------ (a)

Retention ration shows portion of the earning that the company has retained for future investment or operation or growth.

Given data

Growth rate = 5 % or 0.05

Debt to equity ratio = 0.55

Assets turn over = 1.30

Profit Margin = 9 % or 0.09

Retention ration can be calculated from sustainable growth ratio formula.

Sustainable growth rate = Retention ratio x Return on equity

Sustainable growth rate means the growth rate that the company wants to maintain in future.

Retention ratio = Sustainable growth rate / Return on equity ---- (b)

Return on equity is not given the question but it can be calculated from Du Pont equation.

According to Du Pont equation,

Return on Equity = Profit Margin x Assets Turn Over x Financial leverage

Return on Equity = 0.09 x 1.30 x ( 1 + 0.55) = 0.18135

Let r be retention ratio, Then

Sustainable growth rate = (0.18135 x r)/ ( 1- (0.18135 x r))

0.05 = (0.18135 x r)/ ( 1- (0.18135 x r))

r = 0.2626 = Retention ratio

Putting the value of retention ratio in equation (a)

Payout ratio = 1 - Retention ratio = 1 - 0.2626 = 0.7374 or 73.74 %.

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3 years ago

As a baby, charlie resisted being held and showed no interest in human stimulation. usually passive, he sometimes played with hi

Vika [28.1K]

I think and arrange Charlie as having an autistic disorder, which can be grouped by impeded social association and correspondence.
It is a neurological and formative issue that typically shows up amid the initial three years of life. A tyke with extremely introverted-ness seems to live in their own reality, indicating little enthusiasm for others and an absence of social mindfulness.

3 0

3 years ago