Answer:
The net impact on the income will be 2,795,000 each year
Explanation:
The purchase will generate the followng:
4.3 depreciation expense
and a tax shield, as this expense decrease the net income:
depreciation x tax-rate = tax-shield
4.3 x 35% = 1.505 millions
total impact on net income:
depreciation expense - tax shield
4.3 - 1.505 = 2.795 millions net impact
Answer:
Results are below.
Explanation:
Giving the following information:
Selling price= $1.5
Unitary variable cost= $0.75
Fi<u>rst, we need to calculate the unitary contribution margin:</u>
<u></u>
Contribution margin= selling price - unitary variable cost
Contribution margin= 1.5 - 0.75
Contribution margin= $0.75
<u>Now, we can calculate the contribution margin ratio:</u>
contribution margin ratio= contribution margin/selling price
contribution margin ratio= 0.75/1.5
contribution margin ratio= 0.5
Answer: Marginal revenue is equal to price times quantity
Explanation:
A perfectly competitive market is a market where there's a large number of both the producers and the consumers have full and symmetric information.
In a perfectly competitive market, the marginal revenue is the same as price and the marginal revenue curve is the same as the demand curve facing sellers.
It should be noted that the statement that the marginal revenue is equal to price times quantity is incorrect. The total revenue is equal to price times quantity.
Answer:
There is a loss on buying from outside supplier ,Peach's offer should not be accepted.
Explanation:
Variable cost is a cost that varies with number of units produced or sold so it is always a relevant cost while making decision.
Fixed cost remains constant irrespective of number of units so it is a irrelevant cost unless avoidable.So in the given case ,fixed cost $70 is irrelevant since same will be incurred whether purchased or manufactured.
Incremental savings
Saving in variable cost 220
saving in fixed cost 25
Total saving 245
less: Incremental cost (270)
Incremental profit /(loss) on buying from outside supplier (25)
Total loss 25*5900= -147500
Therefore, There is a loss on buying from outside supplier ,Peach's offer should not be accepted.
Answer:
7 packets of sweet-pepper seeds and 9 packet of hot-pepper seeds.
Explanation:
Let x packets of sweet-pepper seeds for $2.16 each and y packets of hot-pepper seeds for $4.24 each are mixed to obtain 16-packet mixed pepper assortment for $3.33 per packet,
i.e. x + y = 16 ..........(1)
Also,
The price of sweet-pepper seeds + price of hot pepper seeds = price of the mixture
⇒ 2.16x + 4.24y = 3.33(x+y)
⇒ 2.16x + 4.24y = 3.33x+3.33y
⇒ 2.16x + 4.24y - 3.33x-3.33y = 0
⇒ −1.17x +0.91y = 0 ........(2)
Equation (2) + 1.17 × equation (1)
0.91y + 1.17y = 18.72
2.08y = 18.72
⇒ y = 9
From equation (1),
x + 9 = 16 ⇒ x = 16 - 9 ⇒ x = 7
Hence, there are 7 packets of sweet-pepper seeds and 9 packet of hot-pepper seeds.
