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Butoxors [25]
3 years ago
7

The management of dominican sugar company is considering whether to process further raw sugar into refined sugar. refined sugar

can be sold for $2.23 per pound, and raw sugar can be sold without further processing for $1.43 per pound. raw sugar is produced in batches of 42,500 pounds by processing 100,000 pounds of sugar cane, which costs $0.36 per pound of cane. refined sugar will require additional processing costs of $0.49 per pound of raw sugar, and 1.25 pounds of raw sugar will produce 1 pound of refined sugar.
Business
1 answer:
horsena [70]3 years ago
5 0

We shall Ignore cost of sugar cane at $0.36 per pound, as its going to be incurred for both processes.

Lets find the cash flow from not processing further:

42500 pounds Sugar @ $1.43 per Pound $60,775

Lets find the cash flow from Processing Further:

If 42500 pounds of raw sugar are processed further, we get 34000 pounds of refined sugar(42500/1.25)

34000 pounds of refined [email protected] $2.23 per pound $75280

Additional Processing charges for 42500 [email protected]$0.49 ($20825)

Total Cash Flow $54995

As can be observed, the organisation earns more when they sell raw sugar, Thus sugar should not be processed further.

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Answer:

The correct answer is E. Distribution planning.

Explanation:

Distribution planning refers to the development of objectives from production to putting the product on the counter. This process includes the entire chain from when the raw material to produce is entered, and the logistics necessary to transport the product to the final supplier. This process must evaluate external and internal problems in order to make it as expeditious as possible and the times are met in order to avoid product shortages.

5 0
3 years ago
Holly created a saving and investing plan over twelve years ago. She has not looked at it or made any changes to it. What saving
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Continually reassess your plan. As part of the investment process and financial planning process, Holly should monitor and reassess her savings and investing plan annually to determine if her goals have changed and if she is meeting her goals through the plan's performance. 
4 0
3 years ago
On September 1, 2021, Southwest Airlines borrows $39.3 million, of which $6.6 million is due next year. Show how Southwest Airli
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Answer:

Balance sheet

Current liability:

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Therefore,

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4 0
3 years ago
When calculating tax revenue calculate the area between the total price paid by blank and the net price received by blank from z
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Answer:

consumers; suppliers

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8 0
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2. A company's accounting records reveal that Supplies had a beginning balance of $1,000. During the accounting period, the comp
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Answer:

$100

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Of the beginning balance on the supplies account was $1,000 and purchase of supplies of $500, it would have given a balance of $1,500 in the supplies account during the day for the business. The amount that was used from supplies at end of day is $1,400.

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