Answer:
Instructions are listed below
Explanation:
Giving the following information:
Machine 1
$422 monthly lease.
1.4 cent per page after the 1st 250 pages.
Machine 2
$566 monthly lease.
0.9 cents per page after the 1st 250 pages.
Selling price 5.0 cents
Break-even point= fixed costs/ contribution margin
Machine 1:
1 dollar= 100 cents
Break-even point= 422 / (0.05 - 0.014)= 11,722 copies
Machine 2:
Break-even point= 566 / (0.05 - 0.009)= 13,805 units
Answer:
The order should be accepted as it will icnrease contribution by 2,700 dollars
Sales revenue 112,500
variable cost (106,800)
additional fixed cost <u> (3,000)</u>
contribution 2,700
Explanation:
We have to calculate the variable cost to compare against the offer sales price:
COGS
2,600,000 x 70% = 1,820,000
Operating expense
840,000 x 80% = 672,000
total variable 2,492,000
variable per unit:
2,492,000 / 350,000 = 7.12
we now calculate the contribution of the order and subtract the additional cost:
15,000 units x (7.50 - 7.12) -3,000 additional shipping
contribution 2,700
When you have to give up one thing in order to get another this is called a <u>Tradeoff</u>.
<h3>Why do we have tradeoffs?</h3>
- As a result of scarcity, the resources available to us are not enough for all our needs and wants.
- We are forced to choose between needs and wants that will be satisfied.
Tradeoffs therefore lead to opportunity costs because we would be giving up the benefits of the alternative to the option we chose.
Find out more on tradeoffs at brainly.com/question/7072776.
Answer:
The effect of price change in the raw material needs to be adjusted.
The one off event which is penalty due to custom clearance delay needs to incorporated.
Explanation:
The budget is the initial planning of the cash flows of the company. The budget is made on forecasted figures. The one off events which is penalty fee of custom needs to be adjusted. The inflation effect in the prices of raw material is adjusted before the finalized budget is presented to the management.
Answer:
$247,300
Explanation:
Given that
Invested amount = Present value = $11,2000
Time = 10 years × 4 quarter = 40
The rate = 8% ÷ 4 = 2%
So, we have to applying the future value formula which is presented below:
Future value = Present value × (1 + interest rate)^ time period
= $112,000 × (1 + 0.02)^40
= $112,000 × 1.02^40
= $112,000 ×2.2080396636
= $247,300
