The primary reasons people become entrepenuers include all of the following EXCEPT the desire to

Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows. Sal

Korvikt [17]

Answer:

Results are below.

Explanation:

To calculate the break-even point in units, we need to use the following formula:

Break-even point (units)= Total fixed costs / Weighted average contribution margin

Weighted average contribution margin= 0.2*33 + 0.5*22 + 0.3*41

Weighted average contribution margin= $29.9

Break-even point (units)= 4,544,800 / 29.9

Break-even point (units)= 152,000 units

Now, for each product:

Lawnmowers= 0.2*152,000=30,400

Weed-trimmers= 0.5*152,000= 76,000

Chainsaws= 0.3*152,000= 45,600

8 0

3 years ago

Grear Tire Company has produced a new tire with an estimated mean lifetime mileage of 36,500 miles. Management also believes tha

Lelechka [254]

Answer:

$0.013

0.010724

Explanation:

Given that :

Mean, m = 36500

Standard deviation, s = 5000

Refund of $1 per 100 mile short of 30,000 miles

A.) Expected cost of the promotion :

P(X < 30,000)

Using the Zscore relation :

Zscore = (x - m) / s

Zscore = (30000 - 36500) / 5000

= - 6500 / 5000

= - 1.3

100 miles = $1

1.3 / 100 = $0.013

b. What is the probability that Grear will refund more than $50 for a tire?

100 miles = $1

$50 = (100 * 50) = 5000 miles

Hence, more than $50 means x < (30000 - 5000) = x < 25000 miles

P(x < 25000) :

(25000 - 36500) / 5000

-11500 / 5000

= - 2.3

P(z < - 2.3) = 0.010724 (Z probability calculator)

3 0

3 years ago

Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for $1

mina [271]

Answer:

-$475,000

Explanation:

Total revenue = Baskets of peaches × Price

= 100,000 × $3

= $300,000

Explicit cost:

= Rent equipment + wages

= $100,000 + $100,000

= $200,000

Implicit cost:

= Land × Interest + salesman earned

= $1,000,000 × 0.55 + $25,000

= $575,000

Total cost = Explicit cost: + Implicit cost

= $200,000 + $575,000

= $775,000

Economic profit = Total revenue - Total cost

= $300,000 - $775,000

= -$475,000

8 0

3 years ago

Mr. Hudson notes that if he produces 10 pairs of shoes per day, his average fixed cost (AFC) is $14 and his marginal cost is $8;

zalisa [80]

Answer:

Average fixed cost for 20 units = $7

Explanation:

The fixed costs are cost are expenditures that do not vary with the activity level within a given range. Unlike variable costs, fixed costs are tend to be unaffected in the short run by amount of production work done or service rendered.

The units produced will not have an impact on the total fixed costs but rather on the average fixed cost. The average fixed cost would become lower as the units produced increases.

Average fixed cost = Total fixed cost / Total units produced.

Hence , Total fixed cost = Average fixed cost × units produced

DATA

AFC - $14

Units - 10 units

Total fixed cost = 10 × 14 = $140

Average fixed cost for 20 units =Total fixed cost / Number of units

140/20 = $7

Average fixed cost for 20 units = $7

3 0

3 years ago

Harris Co. is considering a 12-year project that is estimated to cost $900,000 and has no residual value. Harris seeks to earn a

masha68 [24]

Answer:

annual income = $70,292.52

Explanation:

initial outlay $900,000

in order to determine the net cash flows per year we can use the present value of an ordinary annuity:

PV = annual cash flow x annuity factor

PV = $900,000
annuity factor, 15%, 12 years = 6.1944

annual cash flow = $900,000 / 6.1944 = $145,292.52

annual cash flow = [(revenue - operating costs - depreciation) x (1 - tax rate)] + depreciation

revenue - operating costs - depreciation = annual income
tax rate = 0?
depreciation = $900,000 / 12 = $75,000

$145,292.52 = annual income + $75,000

annual income = $145,292.52 - $75,000 = $70,292.52

3 0

3 years ago