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creativ13 [48]
3 years ago
15

Cobe Company has already manufactured 18,000 units of Product A at a cost of $15 per unit. The 18,000 units can be sold at this

stage for $470,000. Alternatively, the units can be further processed at a $240,000 total additional cost and be converted into 5,900 units of Product B and 11,600 units of Product C. Per unit selling price for Product B is $104 and for Product C is $52. 1. Prepare an analysis that shows whether the 18,000 units of Product A should be processed further or not
Business
1 answer:
Galina-37 [17]3 years ago
3 0

Answer:

Therefore the company should process further the Product A

Explanation:

The Preparation of  analysis that shows whether the 18,000 units of Product A should be processed further or not is shown below:-

                           Sales           Process Further

Sales               $470,000          $1,216,800

                                       (5,900 × $104) + (11,600 × $52)

Relevant Cost

Additional cost to

process further                            $240,000

Total Relevant Cost                     $240,000

Income (loss)    $470,000           $976,800

Incremental net income (or loss ) if processed further =  $976,800 - $470,000 = $506,800 Incremental net income.

Therefore the company should process further the Product A

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5 0
3 years ago
Why does the “rfm” rubric present the three key measures (recency, frequency, and monetary value) in that order?
snow_lady [41]

The order of the attributes in RFM conforms to the order of their importance in ranking customers. Recency is the most important factor. Recency alone won’t sort out your good customers from your new ones. You need frequency for that. Frequency measures the intensity of a customer’s relationship with your business. How much a customer spends on average or in total is the final measure of his or her monetary value.

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When identical units of an item are purchased at different costs,
Masja [62]
When identical units of an item are purchased at different costs: <span>an inventory cost flow method must be used under both a perpetual and a periodic inventory system.

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7 0
3 years ago
Assume a major investment service has just given Oasis Electronics its highest investment rating, along with a strong buy recomm
ruslelena [56]

Answer:

Share price : $ 56.23

Explanation:

CAPM

Ke= r_f + \beta (r_m-r_f)

risk free = 0.05

market rate = 0.11

premium market = (market rate - risk free) 0.06

beta(non diversifiable risk) = 1.64

Ke= 0.05 + 1.64 (0.06)

Ke 0.14840

Now, we solve for the present value of the future dividends:

year   dividend*     present value**

1  2.91                 2.53

2  3.31                 2.51

3  3.78         2.49

4  4.31                 2.48

4   80.38          46.22

TOTAL            56.23

*Dividends will be calculate as the previous year dividends tiems the grow rate

during the first four year is 14%

then, we calcualte the present value of all the future dividends growing at 9% using the dividend grow model:

\frac{D_1}{K_e-g}

(4.31 x 1.09) / (0.1484 - 0.09) = 80.38

Then we discount eahc using the present value of a lump sum:

\frac{Cashflow}{(1 + rate)^{time} } = PV

We discount using the CAPM COst of Capital of 14.84%

last we add them all to get the share price: $ 56.23

4 0
3 years ago
When a pharmaceutical company discovers a new drug, patent law gives it market power by guaranteeing:
Roman55 [17]

C) exclusive ownership of the drug's right to sell it for a limited time.

What guarantees the monopoly when a pharmaceutical company discovers a new drug?

A company without market power is a monopoly. Patent law grants a pharmaceutical company a monopoly when they discover a new drug: the right to sell the drug in part for an unlimited number of years.

What is monopoly power's fundamental source?

Barriers to entry are the primary factor that lead to monopoly. There are three sources of entry barriers: Responsibility for secret weapon.

Is a patent monopoly-granting?

Invention is rewarded by patents, not commercialization. In a similar vein, a patent does not constitute an economic monopoly. First, because having a patent does not result in the "single supplier" situation that is typical of most monopolies in real life.

To learn more about monopoly here

brainly.com/question/29765560

#SPJ4

5 0
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