Answer:
Burns Industries
Using an incremental analysis approach, Burns should consider accepting this special order only if the price per unit offered by Allen is at least:
above $38 (the variable cost per unit).
Explanation:
a) Data and Calculations:
Monthly production and sales units = 18,000
Production capacity per month = 33,000 units
Costs at the 18,000-unit-per-month level of production:
Variable costs = $38
Fixed costs = 23
Total per unit = $61
Selling price per unit = $78
Special offer for 4,800 saws per month, without changing the fixed manufacturing costs.
b) Incremental analysis approach is a management decision technique that specifies that only relevant, marginal, or differential costs should be taken into account. It rules out the inclusion of sunk or fixed costs, which do not change between alternatives.
Answer:
Acitivy B should be crashed first by 2 days and Activity B has a crash cost per days of $25, it will be crashed for a total of $50.
Explanation:
activity A =
normal time (NT) = 5 days
Normal cost (NC) = $0
crash time (CT) = 3 days
Crash cost (CC) = $500
crash cost per day = [CC - NC]/[CT - NT] = $250/day
activity B:
normal time (NT) = 6 days
Normal cost (NC) = $0
crash time (CT) = 4 days
Crash cost (CC) = $50
crash cost per day = [CC - NC]/[CT - NT] = $25/day
activity C:
normal time (NT) = 8 days
Normal cost (NC) = $0
crash time (CT) = 3 days
Crash cost (CC) = $1000
crash cost per day = [CC - NC]/[ CT- NT] = $200/day
The activity that takes the least cost to speed up is the first one to be crashed. from the computations, activity B takes the least cost to speed up, so the project manager should crash activity B first by 2 days.
Therefore, Acitivy B should be crashed first by 2 days and Activity B has a crash cost per days of $25, it will be crashed for a total of $50.
Answer:
the share should sell at $46
Explanation:
We use the CAPM method to know the required return of the capital
risk free 0.04
market rate 0.1
beta(non diversifiable risk) 2
Ke 0.16000 = 16%
Now we calculate with the dividends grow model the intrinsic value of the share:
$4.6/0.1 = $46
If price changes by a larger percentage than quantity demanded (i.e., if demand is price inelastic), total revenue will move in the direction of the price change. ... Demand is unit price elastic, and total revenue remains unchanged. Quantity demanded falls by the same percentage by which price increases.
Answer:
D if this is anything related to business then there is always something that reviews everything and the most common term for it is Master scheduling.
Explanation:
