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Blababa [14]
3 years ago
5

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 $ 50,000 for proposal A and $ 70,000 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​ = ____ units ​(round your response to the nearest whole​ number).
Business
1 answer:
liraira [26]3 years ago
8 0

Answer:

The indifference point is 10,000 units.

Explanation:

Giving the following information:

Two vendors have presented proposals. The fixed costs are $ 50,000 for proposal A and $ 70,000 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.

Proposal A= 50,000 + 12*x

Proposal B= 70,000 + 10*x

70,000 + 10x= 50,000 + 12x

20000= 2x

10000= x

The indifference point is 10,000 units.

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It is called A COST DRIVER. A cost driver refers to any factor that causes a change in the cost of an activity. Cost driver is used to assign overhead costs to the quantity of a particular goods that is manufactured. Example of a cost driver is direct labour hours input into a production operation. 
7 0
4 years ago
Coffer co. is analyzing two projects for the future. assume that only one project can be selected.
vladimir1956 [14]
The best and most correct answer among the choices provided by your question is the second choice.

Project x should be used i<span>f the company is using the payback period method and it requires a payback of three years or less.</span>

I hope my answer has come to your help. Thank you for posting your question here in Brainly. We hope to answer more of your questions and inquiries soon. Have a nice day ahead!
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4 years ago
Read 2 more answers
what happens to aggregate output if both taxes and government spending are lowered by $300 billion and mpc
Papessa [141]

Answer:

The answer is:

1. consumers' expenditure increases by $150 billion

2. output will decrease by $600 billion

Explanation:

Tax impact:

$300 billion x 0.5

= $150 billion.

If taxes are lowered by $300 billion, consumers' expenditure increases by $150 billion because with lower tax, there is money money to be spent because their disposable income has increased.

Government spending impact:

$300/(1-0.5)

$300/0.5

=$600 billion.

Due to government spending that has increased by this amount, output will decrease by this amount too because government has directly competed with firms that should have used this money to increase the total output.

Therefore, net effect on total output is $300billion($600 - $300)

3 0
4 years ago
Anderson's Furniture Outlet has an unlevered cost of capital of 10.3 percent, a tax rate of 34 percent, and expected earnings be
sattari [20]

Answer:

The cost of equity= 11.21%

Explanation:

VL=Value UnLevered + Debt*Tax Rate =EBIT*(1-Tax Rate)/Unlevered Cost of Capital +Tax *Debt

=1900*(1-34%)/10.3%+34%*4000

=13534.76

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Cost of Equity = Cost of Unlevered Equity +(Debt/Equity)*(1-Tax Rate)*(Cost of Unlevered Equity-Cost of Debt)

=10.30%+(4000/9434.757)*(1-34%)*(10.3%-7%)

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3 years ago
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saul85 [17]

The higher the taxpayer's after-tax rate of return because deferring the distribution decrease the present value of the taxes paid on the distribution.

The required details about tax rate is mentioned below.

The tax rate in a tax system is the ratio (typically represented as a percentage) at which a business or individual gets taxed. A tax rate can be presented in numerous ways: statutory, average, marginal, and effective. These rates can also be provided using two types of tax base definitions: inclusive and exclusive.

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