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Vinvika [58]
3 years ago
5

Vaughn Manufacturing has three product lines. Its only unprofitable line is Corn Nuts, the results of which appear below for 201

9:Sales$1530000Variable expenses1040000Fixed expenses600000Net loss$ (110000)If this product line is eliminated, 30% of the fixed expenses can be eliminated. How much are the relevant costs in the decision to eliminate this product line
Mathematics
1 answer:
elena-14-01-66 [18.8K]3 years ago
6 0

Answer: The relevant costs are $18000 in the decision to eliminate this product line.

Step-by-step explanation:

Since we have given that

Sales = $1530000

Variable expenses = $1040000

Fixed expenses = $600000

Net loss = $110000

If product line is eliminated, 30% of the fixed expenses can be eliminated.

So, it becomes,

30% of $600000 is given by

0.3\times 600000\\\\=\$18000

Hence, the relevant costs are $18000 in the decision to eliminate this product line.

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The descriptive answer of different part is described below.

<h3>What is Linear Equation?</h3>

An equation that has the highest degree of 1 is known as a linear equation. This means that no variable in a linear equation has an exponent more than 1. The graph of a linear equation always forms a straight line.

Here, Studio A rents for $75 plus $75 an hour .

Studio B rents for $150 and $50 an hour.

Let t = the number of hours and c = cost.

Part A

Studio A: c = 75 +75·t

Studio B: c = 150 +50·t

Part B

We solve the system of equation using substitution method, where we substitute c in the first equation with 150 +50t.

150 +50·t = 75 +75·t, subtract 75 and 50t from both sides

  150 -75 = 75t -50t, combine likes terms

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Now we know that t = 3 so we find c by substituting t with 3 in the second equation.

c = 150 +50·t

c = 150 +50·3

c = 300

The solution of the system of equations is c = 300 and t = 3

Part C:

The solution of the system of equation tells us that if we rent either studio A or B for 3 hours will pay the same price $300.

The price will be different if we rent studio A then studio B if we rent it for a different amount of time than 3 hours.

Learn more about Linear equation from:

brainly.com/question/11897796

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Answer:

Step-by-step explanation:

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