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Minchanka [31]
3 years ago
13

A firm is considering two location alternatives: A and B. Alternative A would have an annual fixed cost of $300,000 and variable

costs of $25 per unit. Alternative B would have annual fixed costs of $250,000 and variable costs of $30 per unit. Revenue is expected to be $60 per unit for both locations. Develop an indifference
Business
1 answer:
myrzilka [38]3 years ago
7 0

Answer:

Check the explanation

Explanation:

Alternative A

Let the break even point be X, then

Total Revenue = Total Expense

60*X = (300000 + 25*X)

35*X = 300000

X = 8571.43 Units

Alternative B

Let the break even point be Y, then

60*Y = (250000 + 30*Y)

30*Y = 250000

Y = 8333.33 Units

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Answer:

<u>Incidental</u> damages

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In a situation where an employer doesn't fulfill a contract agreement with an employee, just like in the question above, where Jeremiah was unfairly terminated before his employment contract expired, he has the right to collect "damages" which is legal compensation for financial losses caused by the termination of his employment contract before it expired. Incidental damage is the answer because Jeremiah incurred expenses where he had to spend $500 to find another job as a result of the employer's breach of the contract.

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In a sales mix situation at any level of units sold net income will be higher if
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After Mario completes his monthly report, his boss reviews it to see if the standards were met. If there are errors, Mario is to
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5 0
3 years ago
Sheffield’s Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $1
larisa [96]

Answer:

Company Save  $37000 by Buying

Explanation:

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make component part = 100 units

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fixed costs = $4000

to find out

make or buy decision

solution

first we find here Total Cost for Making component part

total cost = Direct Materials + Direct Labor + Variable Overhead + Fixed Overhead ..............1

put here value

total cost for make =  $122000 + 34000  + 55000 + 30000

total cost for make = $241000

and

now we find here Total Cost for buying component part

total cost = Purchase Price + fixed costs   ............2

put here value we get

total cost for buying = $200000 +  $4000

total cost for buying  = $204000

so

we can say Company Save =  $241000 -  $204000   = $37000 by Buying

5 0
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