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faltersainse [42]
3 years ago
5

In order to increase the profit margin for a certain product, a company is planning to purchase a custom-made machine for $5,000

,000. it is anticipated that the introduction of the new machine will reduce the product's variable costs of labor and maintenance by $5.50 per unit and $.95 per unit, respectively. the product manager estimates that 500,000 units of the product will be manufactured and sold each year with a product life cycle of two years, at which time the machine will be discarded with no salvage value. what is the company's total cost savings over the product's life cycle? gaodun
Business
1 answer:
vladimir2022 [97]3 years ago
5 0
Given that the company has to invest $5,000,000.00 custom-made machine with a life span of 2 years that will manufacture a total of 500,000 units in a year. Using the machine will reduce the costs in labor for $5.50/unit and maintenance for $0.95/unit, total of $6.45 per unit savings. For 2 years, the machine can manufacture a total of 1,000,000 units with total savings of $6,450,000.00 for both labor and maintenance. Since the machine's life is only 2 years with no salvage value, the company's total cost savings after the end of 2 years would be $1,450,000.00.
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You have the following information on Marco's Polo Shop: total liabilities and equity = $210 million; current liabilities = $50
KengaRu [80]

Answer:

$60 million

Explanation:

The quick ratio is  the financial ratio of the current assets less inventory to current liabilities. While the accounting equation shows the relationship between the elements of a balance sheet which are assets liabilities and equity.

This may be expressed mathematically as

Assets = Liabilities + Equity

Given that quick ration is 1.7 and current liabilities = $50 million

1.7 = current assets less inventory/$50 million

current assets less inventory = 1.7 * $50 million

= $85 million

The total asset is made up of the current assets less inventory, inventory, fixed assets. Let the balance for fixed assets be y

$85 + $65 + y = $210   (all amounts in millions)

y = $210 - $150   (all amounts in millions)

y = $60   (all amounts in millions)

3 0
3 years ago
Kelly decided to accept the risk and purchased a high growth stock. Her returns for the past five years are 32 percent, 24 perce
Mazyrski [523]

Answer:

32.03%

Explanation:

The computation of the standard deviation is as follows;

As we know that

Average return = Total return ÷Total time period

= (32 + 24 - 48 + 12 - 9) ÷ 5

= 2.2%

Now

Return         (Return - Average Return)^2

32                  (32 - 2.2)^2 = 888.04

24                 (24 - 2.2)^2 = 475.24

-48                (- 48 - 2.2)^2  = 2520.04

12                  (12 - 2.2)^2 = 96.04

-9                   (-9 - 2.2)^2 = 125.44

Total =                 4104.8%

Now

Standard deviation is

= [Total (Return - Average Return)^2 ÷ (Time period- 1)]^(1 ÷ 2)

= [4104.8 ÷ (5 - 1)]^(1 ÷ 2)

= [4104.8 ÷ 4]^(1 ÷ 2)

= 32.03%

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4 years ago
If an investment is considered “volatile”, it means...
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7 0
3 years ago
Read 2 more answers
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Bingel [31]

Answer:

False.

Explanation:

GANTT refers to a chart that was developed by Henry L. Gantt, who was an american engineer and a social scientist, and is thus named after him. This chart is used to describe and illustrate various scheduled activities and the duration that each activity might take to complete. There is no full form for this word "GANTT". Therefore, the statement is false.

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4 years ago
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