1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Gnom [1K]
3 years ago
5

Driehaus Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals.

The fixed cost for proposal A is $62,000, and for proposal B, $35,000. The variable cost for A is $11, and for B, $14. The revenue generated by each unit is $20. a. What is the crossover point in units for the two options? b. At an expected volume of 8,300 units, which alternative should be chosen?
Business
1 answer:
makvit [3.9K]3 years ago
7 0

Answer:

A. The crossover point in units is 9000 units

B. Alternate B or Proposal B should be chosen

Explanation:

a.

Let x be the number of units.

The profit equation for option 1 can be written as (20-11)x - 62000

The profit equation for option 2 can be written as (20-14)x - 35000

The crossover point is where both optons yield equal profit thus equation 1 = equation 2.

(20-11)x - 62000 = (20-14)x - 35000

9x - 62000 = 6x - 35000

9x - 6x = 62000 - 35000

3x = 27000

x = 27000 / 3

x = 9000 units

b.

At 8300units,

Profit from proposal A is = 9(8300) - 62000 = 12700

Profit from proposal B is = 6(8300) - 35000 = 14800

Thus option B is more profitable at this unit.

You might be interested in
In 1970 Professor Fellswoop earned $12,000; in 1980 he earned $24,000; and in 1990 he earned $36,000. If the CPI was 40 in 1970,
Arte-miy333 [17]

Answer:

In 1980

Explanation:

Year        Salary        Percentage Salary Increase        CPI Increase

1970       $12,000     -                                                      -

1980       $24,000    100                                                 50

1990       $36,000    50                                                   83.3

As can be seen in the table, the Professor's salary increase from 1970 to 1980 was twice as much as the CPI increase during the same period.

On the contrary, his salary increase from 1980 to 1990 was significantly less than the CPI increase during the same period.

Therefore, the professor's salary was highest in 1980.

4 0
3 years ago
Eight-year-old Ella can use scissors to cut small paper dolls out of craft paper, something she could not do at age three. What
Romashka [77]

Answer: Increased myelination of the central nervous system

Explanation: skill in performing tasks, especially with the hands is what is known as dexterity. According to the question Eight-year-old Ella can use scissors to cut small paper dolls out of craft paper, something she could not do at age three was due to her Increased myelination of the central nervous system. Her dexterity has improved, Myelin has enabled her nerve cells to transmit information faster and allows for more complex brain processes

3 0
3 years ago
By how much does the current GDP rise in the following scenario? A real estate agent sells a house for $250,000 that the previou
Aloiza [94]

Answer:

c. $10,000.

Explanation:

Gross domestic product is the sum total of all goods produced in a country in a given period. Sale of used good are not considered in GDP because the original value of the used item would have been recorded previously as GDP when it was first produced.

Therefore in this scenario the money paid for the house ($250,000) is not considered to be part of GDP since the original value of $90,000 would have been recorded as GDP 10 years ago.

However the commission of $10,000 that the real estate agent collected for his services is considered a contribution to GDP.

8 0
2 years ago
Factors influencing the rate of elimination of alcohol include _________.
pychu [463]
The correct answer is C
3 0
3 years ago
Read 2 more answers
An economy consists of three workers, Larry, Moe, and Curly. Each works ten hours a day and can produce two services: mowing law
pantera1 [17]

Answer:

Larry spends half his time on each activity, while Moe only washes cars and Curly only mows lawns. Then lawns will be mowed and cars will be washed

Explanation:

In a hour :

Larry can ; wash 1 car or mow 1 lawn

Moe can ; mow 1 lawn or wash 2 cars

Curly can ; mow 2 lawns or wash 1 car

The inefficient scenario is  Larry spends half his time on each activity, while Moe only washes cars and Curly only mows lawns. Then lawns will be mowed and cars will be washed. this is because Larry can either wash 1 car or mow 1 lawn every hour and if Moe only washes cars and Curly only mows Lawns there will still be Cars and Lawns left to be washed and Mowed since Larry does not work at full capacity like Moe and Curly who could wash 2 cars or mow 2 lawns every hour

7 0
3 years ago
Other questions:
  • "The Carla Vista Boat Company's bank statement for the month of November showed a balance per bank of $8,500. The company's Cash
    6·1 answer
  • Standard of living includes _____, which can be bought and sold.
    5·1 answer
  • Suppose the following information: The cost of a full-page color ad in the U.S. national edition of The Wall Street Journal (new
    9·1 answer
  • During Year 1, its first year of operations, Galileo Company purchased two available-for-sale investments as follows: Security S
    12·1 answer
  • At a potluck, everyone brings his or her favorite dish to share. gavin decides to avoid the foods he has never heard of before a
    8·1 answer
  • Bok advises campus officials (and students) simply to "ignore" offensive words, flags, and so forth (para. 13). Do you agree wit
    6·1 answer
  • What should be considered when developing a sample design
    5·1 answer
  • Mount Snow Inc. operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season.
    10·1 answer
  • Question 10 of 36
    15·1 answer
  • Three admission test preparation programs are being evaluated. Suppose the scores obtained by a sample of 20 people who used the
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!