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Stells [14]
3 years ago
15

Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors ha

ve presented proposals. The fixed costs are $ 50 comma 000 for proposal A and $ 70 comma 000 for proposal B. The variable cost is $ 12.00 for A and $ 10.00 for B. The revenue generated by each unit is $ 20.00. Vendor A and Vendor B have the same cost when the output volume​ = nothing units ​(round your response to the nearest whole​ number).
Business
2 answers:
MaRussiya [10]3 years ago
7 0

Answer:

10,000 units

Explanation:

Given:

Total fixed costs for proposal A = $50,000

Total fixed costs for proposal B = $70,000

Variable cost for proposal A = $12

Variable cost for proposal B = $10

Revenue generated by each vendor = $20

let the number of units be 'x'

Now,

Cost of proposal A = Cost of proposal B

Fixed cost + x × Variable cost of proposal A = Fixed cost + x × Variable cost of proposal B

or

$50,000 + x × $12 = $70,000 + x × $10

or

x × $12 - x × $10 = $70,000 - $50,000

or

x × $2 = $20,000

or

x = 10,000 units

andrezito [222]3 years ago
3 0

Question is Incomplete

a) What is the break-even point in units for proposal A?

b) What is the break-even point in units for proposal B?

Answer:

a. Break Even Point for Proposal A = 6,250 Units

a. Break Even Point for Proposal B = 7,000 Units

Explanation:

a. Calculating Break Even Point for Proposal A

Given

For Proposal A:

Fixed costs = $50,000

Variable cost = $ 12.00

Revenue generated = $20.00.

The break unit point is calculated using the following formula:

Break Even Point = F/ (R - V) =

Where F = Fixed Cost = $50,000

R = Generated Revenue = $20

V = Variable Cost = $12

By Substituton

Break Even Point = $50000/($20-$12)

Break Even Point = $50000/$8

Break Even Point = 6250 Units

a. Calculating Break Even Point for Proposal A

Given

For Proposal A:

Fixed costs = $50,000

Variable cost = $ 12.00

Revenue generated = $20.00.

The break unit point is calculated using the following formula:

Break Even Point = F/ (R - V) =

Where F = Fixed Cost = $50,000

R = Generated Revenue = $20

V = Variable Cost = $12

By Substituton

Break Even Point = $50,000/($20-$12)

Break Even Point = $50,000/$8

Break Even Point = 6250 Units

b. Calculating Break Even Point for Proposal B

Given

For Proposal B

Fixed costs = $70,000

Variable cost = $ 10.00

Revenue generated = $20.00.

The break unit point is calculated using the following formula:

Break Even Point = F/ (R - V) =

Where F = Fixed Cost = $70,000

R = Generated Revenue = $10

V = Variable Cost = $12

By Substituton

Break Even Point = $70,000/($20-$10)

Break Even Point = $70,000/$10

Break Even Point = 7,000 Units

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Net sales for the year were $325,000 and cost of goods sold was $240,500 for the company’s existing products. A new product is
marin [14]

Answer:

The correct answer is B.

Explanation:

Gross profit equals net sales minus cost of sales(Net sales- Cost of Sales).

Net sales = $325,000

Cost of Sales = $240,500

Therefore we have;

$325,000 - $240,500

=$84,500

Gross profit ratio is (Gross profit/net sales) x 100%

($84,500 x $325,000) x 100%

26%

6 0
2 years ago
Ricky is 35 years old. He plans to retire when he is 63. He has opened a retirement account that pays 3.2% interest compounded m
Anna11 [10]

Answer:

Amount received = 217,043.56 (Approx)

Explanation:

Given:

Monthly deposit = $400

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Number of year = 63 year - 35 year = 28 year

Number of period = 28 × 12 month = 336 month

Computation:

Amount \ received = PMT[\frac{(1+r)^n-1}{r} ]\\\\Amount \ received = 400[\frac{(1+0.002667)^{336}-1}{0.002667} ]\\\\Amount \ received =400[\frac{(1.002667)^{336}-1}{0.002667} ]\\\\Amount \ received =400[\frac{2.44713794-1}{0.002667} ]\\\\Amount \ received =400[\frac{1.44713794}{0.002667} ]\\\\Amount \ received =400[542.608901]\\\\Amount \ received =217,043.56\\\\

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7 0
3 years ago
At Lequals86​, Kequals90​, the marginal product of labor is 8 and the marginal product of capital is 2. What is the marginal rat
Sidana [21]

Answer:

0.25

Explanation:

The marginal rate of technical substitution (MRTS) can be described as the rate of a reduction is one factor to maintain the same production level when another factor is increased.

Given that labor is measured on the horizontal axis, the MRST of K for L can be calculated as follows:

MRST_{KL} = \frac{MP_{K} }{MP_{L} }

Where;

MPK =  Marginal product of capital = 2

MPL = Marginal product of labor = 8

Substituting the values into the equation, we have:

MRST_{KL} = \frac{2}{8} =\frac{1}{4} = 0.25

This implies that 0.25 of capital must be given up to have one unit of labor.

3 0
2 years ago
The common stock of Detroit Engines has a beta of 1.34 and a standard deviation of 11.4 percent. The market rate of return is 11
stealth61 [152]

Answer:

The firm's cost of equity is C. 14.05 percent

Explanation:

Hi, we need to use the following formula in order to find the cost of equity of this firm.

r(e)=rf+beta(rm-rf)

Where:

r(e) = Cost of equity

rf = risk free rate

rm = Market rate of return

Everything should look like this.

r(e)=0.04+1.34(0.115-0.04)=0.1405

So, this firm´s cost of equity is 14.05%

Best of luck

6 0
3 years ago
Smith Corporation has provided the following information: Cash sales totaled $135,000. Credit sales totaled $289,000. Cash colle
klasskru [66]

Answer:

$434,000

Explanation:

The total amount that should be included in the operating income as follows:

1. Cash sales $135,000

2. Credit sales $289,000

3. Gain from the sale of property and the equipment $10,000

Operating income $434,000

hence, the $434,000 should be included in the operating income

3 0
2 years ago
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