When a businesss purpose is to benefit the general public, the business is called a

The folowing information applies to the questions displayed below] Hoboken Industries currently manufactures 48,000 units of par

kap26 [50]

Answer:

1. 72000 units.

2. $19.

Explanation:

Solution:

Part 1:

Let's Sort out the data given:

Monthly Cost Fixed = $240,000

Fixed Cost unavoidable = 40% x 240,000

Fixed Cost unavoidable = $96,000

Now,

Avoidable Fixed Cost will be = $240,000 - $96,000

Avoidable Fixed Cost will be = $144,000

It means that, if the industries obtain products from the outside supplier, it will save or avoid fixed cost of $144,000 per month.

Now, we also given that,

Variable Production Cost = $16 per unit

Purchase Price per unit (Outsider) = $18 per unit

Increment in Price per unit = $18 - $16 = $2

Hence,

It will cost the industry an extra of $2 per unit.

Now, we can calculate the required monthly usage at which it will be indifferent between purchasing and making part MR24.

Break Even Monthly Usage = Avoidable Fixed Cost/ Incremental Price per unit.

Break Even Monthly Usage = $144,000/$2

Break Even Monthly Usage = 72000 units.

Hence, Monthly usage at which it will be indifferent between purchasing and making part MR24 = 72000 units.

Part 2:

Monthly usage as given = 48000 units on which it can avoid the fixed cost of $144,000

Avoidable Monthly fixed cost = $144,000

So, now, we can calculate the avoidable fixed cost per unit as well.

Avoidable Fixed Cost Per unit = $144,000/48000

Avoidable Fixed Cost Per unit = $3

We also know,

Variable Production cost per unit = $16

Avoidable Fixed cost per unit = $3

So, we can see the maximum purchase price in order to avoid monthly fixed cost.

Maximum Purchase price per unit = $16 + $3 =$19

It means, $19 is the maximum purchase price, if the industry is approaching the outsider for the monthly usage of 48000 units. It will benefit if the price is less than $19.

8 0

3 years ago

The Azuza Company owns no plant assets and had the following income statement for the year:

Nutka1998 [239]

Answer:Please see answer below

Explanation:

Solving

Net income= $16,000

Change in asset and liabilities

Accounts receivable Increased $67,000- $59,000 =- -8000

Inventory Decreased 62,000- 86,000=24,000

Prepaid rent --Increased 9,000- 7,000 = -2000

Accounts payable ---decreased 22,000 -30,000 = -8000

Wages payable ----Increased 9,000- 7,000=2000

Net cash provided by operating activity.=24,000+ 2000-(8000+2000+8000)

= $24,000

Net income= $16,000

Change in asset and liabilities

Accounts receivable--Increase -$8,000

Inventory--Decreased-- $24,000

Prepaid rent --Increased -$2,000

Accounts payable ---decreased-$8,000

Wages payable ----Increased $2,000

Net cash provided by operating activities,= $24,000

6 0

3 years ago

Before Pepsi-Cola stamped freshness dates on its cans, few consumers considered cola freshness an issue. After Pepsi spent about

Vilka [71]

Below are the complete options:

changing beliefs about the extent to which a brand has certain attributes

encouraging the consumer to use stimulus generalization

adding new attributes to the product

encouraging the consumer to use stimulus discrimination

changing the importance of attributes

Answer:

changing the importance of attributes

Explanation:

Freshness dates shows for how long a drink can be considered to not have expired. For example Pepsi can be considered to give freshness from 6-9 months after the date printed on the bottle.

Pepsi spent about $25 million on advertising and promotion related to freshness dates. Initially freshness dates were only seen as important by a few people.

This resulted in 61 percent of cola drinkers now thinking it is important.

This exemplifies how importance of a product's attribute can be changed

6 0

2 years ago

Manufacturers sometimes offer a quantity discount to buyers on what kind of order?

Sergeu [11.5K]

Manufacturers offer discounts usually to large quantity or bulk buyers. this encourages buyers to buy more because the businesses give them an opportunity to save more money. usually, it is the retailers who would buy from manufacturers in bulk orders

6 0

3 years ago

Read 2 more answers

The government banned running of an industry near a famous monument Taj Mahal, but ABC limited does not go by order of the court

notka56 [123]

Answer:

No

Explanation:

Taj Mahal is one of the greatest monument in the world. It is very beautiful. It is located in India. It is made up of white marble. Many people from all parts of the world come to visit Taj Mahal.

But recently the color of the marble changes its color to light yellow due to pollution. The companies near by are emitting harmful gases to the atmosphere for which the color of the white marble changed its color and became light yellowish brown.

In the context, company ABC Limited still operating near the Taj Mahal is not fulfilling its responsibility as it is destroying the beauty and existence of the world famous Taj Mahal.

3 0

3 years ago