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Kamila [148]
3 years ago
11

A company incurs costs of $38 per unit ($27 variable and $11 fixed) to make a product that normally sells for $56. A wholesaler

offers to buy 3,500 units at $36 each. This special order will result in additional shipping costs of $1.15 per unit. Assuming the company has adequate manufacturing capacity, it should? *
Business
1 answer:
Vladimir79 [104]3 years ago
4 0

Answer:

It should accept the special order at the price of $36 as the total marginal cost will be $28.5 (27 variable cost + 1.15 shipping cost).

Explanation:

Special orders are accepted only if marginal revenue increases the marginal cost. Marginal cost is the total cost incurred to fulfill any order.

In the given scenario, since the Company already has adequate capacity and it will not incur any additional fixed cost, therefore the order can be accepted by taking variable cost in to consideration.

Marginal Revenue               36

Less: Marginal Cost

Variable Cost                      (27)

Shipping Cost                   <u> (1.15)</u>

Total Profit from Order   <u> 7.85</u>

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puteri [66]

Answer:

4.87%

Explanation:

In this question , we are asked to calculate the appropriate after-tax cost of new debt for the firm to use in capital budgeting analysis.

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6 0
3 years ago
In a survey of a group of people, it was found that 60 0f them have
GalinKa [24]

Answer:

i) 15  ii) 177

Explanation:

Number of people with business = 60

Number of people with farming = 125

Number of people with government jobs = 45

Number of people with business only = 27

Number of people with government jobs only = 15

10 have business and government  job only, 5 have government job and farming only.

i) Let x represent the number of people with all three jobs. Hence:

Number of people with government jobs = number of people with all three jobs + number of people with government and farming job + number of people with government and business + number of people with government job only

45 = x + 10 + 5 + 15

45 = x + 30

x = 15

15 people have all three profession.

ii)

Number of people with business jobs = number of people with all three jobs + number of people with business and farming job + number of people with government and business + number of people with business job only

60 = 15 + number of people with business and farming job + 10 + 27

number of people with business and farming job = 60 - 52 = 8

Number of people with farming jobs = number of people with all three jobs + number of people with business and farming job + number of people with government and farming + number of people with farming job only

125 = 15 + 8 + 5 + number of people with farming job only

number of people with farming job only = 125 - 28 = 97

Number of people surveyed = number of people with all three jobs + number of people with business and farming job + number of people with government and farming + number of people with farming job only +  number of people with government and business + number of people with business job only + number of people with government job only

Number of people surveyed = 15 + 8 + 5 + 97 + 10 + 27 + 15

Number of people surveyed = 177

3 0
3 years ago
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V125BC [204]

Answer:

The non public area of a large building

Explanation:

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3 0
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Answer:

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Explanation:

Hope this helps! (I just looked it up) Good luck!!

4 0
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Answer:

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