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stealth61 [152]
3 years ago
10

9. Assume that Cane expects to produce and sell 97,000 Alphas during the current year. A supplier has offered to manufacture and

deliver 97,000 Alphas to Cane for a price of $148 per unit. What is the financial advantage (disadvantage) of buying 97,000 units from the supplier instead of making those units
Business
1 answer:
fenix001 [56]3 years ago
8 0

It is sort of outsourcing exercise which is executed as a cost controlling measure thereby enabling management to focus on critical matters.

Explanation:

Here, if in the given case CANE outsources manufacturing activity to an established supplier it can save on hiring factory and cost and lab our overheads and can effectively focus on more critical functions including sales and strengthening supply chain management .

They can effectively deploy capital to more productive options.

This process if considered after due diligence will enable it to improve its financial position.

It only needs to ensure that supplier is committed to service, quality and delivery with flexibility so that financial benefits syncs with the set of expectations.

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Your company is about to undertake a major investment project. The project will require an initial outlay of $100 million for fi
Tcecarenko [31]

Answer:

A) initial outlay = $150 million

Cash flow year 1 = [($30 - $25) x 0.6] + $25 = $28

Cash flow year 2 = [($30 - $25) x 0.6] + $25 = $28

Cash flow year 3 = [($30 - $25) x 0.6] + $25 = $28

Cash flow year 4 = [($30 - $25) x 0.6] + $25 + ($25 x 60%) + $50 = $93

B) Using a financial calculator, NPV = -$16.85 million

C) cash flow year 4 should increase by $24.667 million, meaning that the selling price must increase by $$24.667/0.6 = $41.11 million

minimum selling price $25 + $41.11 = $66.11 million

7 0
3 years ago
Micromedia company offers computer training seminars on a variety of topics. In the seminars each student works at a personal co
Soloha48 [4]

Answer:

the break-even quantity is 18 students

Explanation:

Break Even point is when a firm neither makes a profit nor a loss

Break Even = Fixed Costs/Contribution per Unit

                   = $4800/($300-$30)

                   = 17.77777778

                   = 18 students

Please note that, the cost for the conference room, instructor compensation, lab assistants, and promotion is $4800 represents a fixed cost as this does not vary with the number of students taking the training seminars.

3 0
3 years ago
What is an advantage of using a competency-based pay plan? Employees tend to work harder. Salaries are easy to calculate. Employ
nalin [4]

Answer:

Competency-based pay helps to tie your company's culture directly to the success of the company. Increased transparency: Employees will better understand what they have the potential to earn with a competency-based pay system and what skills they need to acquire to reach the pay they desire.

6 0
3 years ago
In which situation would you need to compromise to avoid stress and conflict?
Marianna [84]
Add the selections so I can answer.

6 0
4 years ago
Allocative efficiency occurs:
jonny [76]

Answer:

a. Anywhere inside or on the production possibilities frontier.

Explanation:

In an economy, the allocative efficiency may be defined as the economic state where the production of various goods or services is aligned with the preferences with the consumers.  

The allocative efficiency always materializes at the intersection of the supply curves and the demand curves.

On the \text{equilibrium point,} the price for a supply \text{exactly matches} with the demand for the product \text{for that supply} at that price, and thus all the products are sold.

It occurs anywhere on the production possibilities frontier or on the inside of the frontier.

Therefore, the correct option is (a).

5 0
3 years ago
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