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S_A_V [24]
3 years ago
13

Perth Mining Company operates two mines for the purpose of extracting gold and silver. The Saddle Mine costs $12,000/day to oper

ate, and it yields 50 oz of gold and 3000 oz of silver each of x day. The Horseshoe Mine costs $17,000/day to operate, and it yields 75 oz of gold and 1000 oz of silver each of y day. Company management has set a target of at least 650 oz of gold and 18,000 oz of silver. How many days should each mine be operated so that the target can be met at a minimum cost?
Business
1 answer:
stepan [7]3 years ago
6 0

Answer:

Operate mine 1 four 4 days and mine 2 during 6 days to obtain minimum cost for the desired output of 850 gold and 18,000 silver

Explanation:

We generate the equation system on excel:

(50g + 3000s) Q_1 --> output generated on Mine 1

(75g + 1,000s) Q_2 --> output generated on Mine 2

12,000 Q1 + 17,000 Q2 = cost of the mines

we do solver to minimize the days of each mine considering a desired output of 18,000 silver and 650 gold:

and get the following:

M1  4 days  output: (50g + 3000s) 4 = 200 g    12,000s

M2 6 days  output: (75g + 1,000s) 6 =  450g      6,000s

Cost: 12,000 x 4 + 17,000 x 6 = 150,000

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Natasha_Volkova [10]

Answer:

Break-even point (dollars)= $234,000

Explanation:

Giving the following information:

Sales (4,000 units) $ 240,000

Variable expenses 156,000

Fixed expenses 81,900

First, we need to calculate the selling price and unitary variable cost:

Selling price= 240,000/4,000= $60 per unit

Unitary variable cost= 156,000/4,000= $39 per unit

Now, we can calculate the break-even point in dollars, using the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 81,900/ [(60 - 39)/60]

Break-even point (dollars)= $234,000

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3 years ago
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strojnjashka [21]
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4 0
3 years ago
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Contribution margin per unit and break-even units LO P2 SBD Phone Company sells its waterproof phone case for $90 per unit. Fixe
anastassius [24]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Selling price= $90

Unitary variable cost= $36

Fixed costs= $135,000

First, we need to calculate the contribution margin per unit.

Contribution margin= selling price - unitary variable cost

Contribution margin= 90 - 36= $54

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Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 135,000 / 54

Break-even point in units= 2,500 units

8 0
3 years ago
The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a
Elis [28]

Answer:

The company should be willing to invest the cost of $3 million to complete the development of the new product.

Explanation:

First, the correct completion of the question

If it would cost $3 million to finish development and make the product, should you go ahead and do so? What is the most that you should pay to complete the development?

Answer

To determine the cost: It is important to critically consider which costs are already sunk and which are still to come.

First, and foremost, $5 million already invested into the new product represents a sunk cost or a cost that has already been spent. This means that to stop the project or continue the project ,either options will still mean that $5 million has been spend already. It will not affect the future decision.

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However, if you decide to continue the project

Sunk Cost = $5 million

Cost of continuation = $3 million (This is current relevant cost to consider against the sales).

Expected Sales of the finished product = $4,500,000

Therefore $4,500,000- $3,000,000= $1,500,000

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If continued, removing the sunk cost, the company can still make a profit of $1,500,000 of the cost of continuation.

The company should finish development and make the product.

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it is income 20characters

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