Answer:
11,538 units
Explanation:
Given that:
Fixed assets = $150,000
Variable cost = $2
Sales price = $15
Break even point = Fixed cost ÷ Contribution margin
Contribution margin = Sales per unit - Variable cost per unit = $15 - $2 = $13
Break even point (Sales) = $150,000 ÷ $13 = 11,538 units
Therefore, 11,538 widgets must be sold to break even.
Answer: d) vertically integrate upstream to build the component
Explanation:
Every good has a supply line from the suppliers who supply the raw materials required to the Producers who convert it to the distributor that brings it to the final user. Vertical Integration refers to when a company such as the producers acquires another company in the supply chain to make things easier for them for instance acquiring the suppliers of a raw material that they need. A practical example would be DeBeers acquiring rights to a diamond mine.
The company in question can engage in Vertical Integration and acquire a supplier that produces the component so that it can be able to specify how it should be made and enforcing production standards.
Complete Question :
Michael is in sales meeting with a potential client. The client is interested in the
product but is concerned that the product costs 15% more than the competitor's.
How should Michael handle this sales situation?
A.) Offer the client a 20% discount.
B.) Ask the client how much he or she would be willing to pay for the product.
C.) Show the client the better warranty and quality that comes with the slightly
higher cost.
D.) Say "Thanks for your time" and leave
Answer: C.) Show the client the better warranty and quality that comes with the slightly
higher cost.
Explanation: The fact that Michael's product costs 15% more than the price of it's competitor doesn't spell the end of the deal. What Michael needs to explain and make clear to the client in the sales meeting are the vague distinctions which exists between what his own product offering and that of it's competitors. Michael needs to let the potential buyers understand and get clearly the additional offers, quality or performance associated with his own product which ultimately accounts for the higher cost of his own product.
Answer:
5.80%
Explanation:
Computation of after-tax return
Based on the information given the total before-tax income will be $3.
Since the firm is in the 30% tax bracket this means that the taxable income will be calculated as:
Taxable income =(0.30 ×$3)
Taxable income = $0.9
The next step is to calculate for the Taxes
The taxes will be = (0.30 ×$0.9) = $0.27
Now let calculate for the After-tax income
After-tax income = ($3 - $0.27) = 2.73
The last step is to find the After-tax rate of return using this formula
After-tax rate of return =After-tax income/Share of preferred stock
Let plug in the formula
After-tax rate of return = ($2.73/$47)
After-tax rate of return=0.058×100
After-tax rate of return = 5.80%
Therefore After-tax rate of return will be 5.80%
An activity's normal time and cost are = 8 and $100 respectively
estimated crash time and cost are = 6 and $160 respectively
Activity's crash cost per unit time = ?
crash cost per unit time = cost slope and,
cost slope = rise/run = (crash cost - normal cost) / (normal time - crash time)
cost slope = (160 - 100) / (8 - 6) = 60 / 2 = $30
so, crash cost per unit time is $30.
