Three reason why business require insurance

Texteriles Company creates different types of bolts of cloth. These bolts of cloth are made on the same machinery. The textile m

nikdorinn [45]

Answer:

Combination of products shall be:

Denim = 6,000 bolts

Chenille = 240 bolts

Gauze = 1,200 bolts

Explanation:

As provided the machine hours are limited thus, the constraint is machine hours.

Accordingly contribution per machine hour shall be computed.

Denim has contribution of $14 for each 0.5 machine hour, thus, contribution per hour = $\frac{14}{0.5} = 28$

Chenille has contribution of $22 per machine hour

Gauze has contribution of $9 per 0.3 hours, thus contribution per machine hour = $\frac{9}{0.3}$ = $30

According to contribution per hour, ranking of products shall be

Gauze I

Denim II

Chenille III

Therefore, bolts of gauze to be produced = 1,200 that is maximum

Hours required = 1,200 $\times$ 0.3 = 360

Hours remaining = 3,600 - 360 = 3,240

Bolts of Denim to be produced = 6,000 that is maximum

Hours required = 6,000 $\times$ 0.5 = 3,000

Hours remaining = 3,240 - 3,000 = 240

Bolts of Chenille that can be produced = $\frac{240\ hours}{1\ bolt\ per\ hour}$ = 240 bolts

Total contribution in this case

= (1,200 $\times$ $9) + (6,000 $\times$ $14) + (240 $\times$ $22)

= ($10,800 + $84,000 + $5,280)

= $100,080

5 0

4 years ago

Break-even analysis for a service company Sprint Nextel is one of the largest digital wireless service providers in the United S

Tema [17]

Answer:

Explanation:

Variable cost = 20,841*70%+9,765*30% = 17,518.20

Fixed cost = 20,841+9,765+2,239 -17,518.20 = 15,326.8

Contribution margin per unit = (Revenue - Variable cost)/subscribers =(35,345-17,518.20)/32.5 = 548.5

a) Break even unit = Fixed cost/Contribution margin = 15,326.8/548.5 = 27.9 Million

b) Revenue per account = (Total variable cost+Total fixed cost)/subscribers = (17,518.20+15,326.8)/32.5 = $1010.61

8 0

4 years ago

The Treasury bill rate is 6%, and the expected return on the market portfolio is 10%. According to the capital asset pricing mod

fenix001 [56]

Answer: See explanation

Explanation:

Your question is not complete. Here is the completed question:

The Treasury bill rate is 6%, and the expected return on the market portfolio is 10%. According to the capital asset pricing model, what is the risk premium?

The risk premium will be the difference between the market portfolio and the treasury bill rate. This will be:

= 10% - 6%

= 4%

8 0

3 years ago

Sutherland manufactures and sells 50,000 laser printers each month. A principal component part in each printer is its paper feed

BigorU [14]

Answer:

Sutherland

a. The average unit cost of manufacturing each paper feed drive is:

= $56.25.

b. The incremental unit cost of producing an additional paper feed drive is:

= $170.

c. The per-unit sales price that Sutherland should charge Desk-Mate to earn $140,000 in monthly pre-tax profit on the sale of drives to Desk-Mate is:

= $184.

Explanation:

a) Data and Calculations:

Production and sales of laser printers per month = 50,000

Monthly production capacity for paper feed drives = 80,000

Unit costs of producing drives:

Variable costs per unit:

Direct materials $ 23

Direct labor 15

Variable manufacturing overhead 2

Variable cost per unit $40 $3,200,000 (80,000 * $40)

Fixed costs per month:

Fixed manufacturing overhead $1,300,000

Total production costs = $4,500,000

Average unit cost = $56.25 ($4,500,000/80,000)

Incremental unit cost of producing an additional paper feed drive:

Variable cost = $40 * 10,000 = $400,000

Additional fixed cost per month = $1,300,000

Total incremental costs = $1,700,000

Unit cost = $170 ($1,700,000/10,000)

Total incremental costs = $1,700,000

Monthly pre-tax target profit 140,000

Expected sales revenue = $1,840,000

Sales price per drive = $184 ($1,840,000/10,000)

8 0

3 years ago

Priscilla owns a factory that produces kayaks. She is trying to decide whether to continue using her one of her current pieces o

Nataliya [291]

Priscilla does not need to consider the cost of the new equipment.

Originally used by the Inuit, kayaks are a sort of canoe with a light frame and a watertight covering that has a tiny space in the top to sit in.

As a type of compact watercraft, kayaks are renowned for their exceptional design. A boat that is quick, strong, and simple to turn may be modified for calm lakes, swift rivers, and rough seas thanks to its light hull, covered top, and shallow base.

Instead of continuing to use her outdated pieces of equipment, Priscilla could swap them out for more modern ones.She shouldn't consider the price of the new equipment as a result.

Click the link to learn more about the kayaks

brainly.com/question/27326576

#SPJ4

4 0

1 year ago