Answer: The company should not buy the new equipment
Explanation:
For the 1st case:
Revenue = Selling price × Number of units
= 1 × 30000
= $30,000
Total cost = Fixed cost + Variable cost
= 14000 + (0.5 × 30000)
= 14000 + 15000
= $29000
Profit = Revenue - Cost
= $30000 - $29000
= $1000
For the 2nd case:
Revenue = Selling price × Number of units
Revenue = Selling price × Number of units
= 1 × 50000
= $50,000
Total cost = Fixed cost + Variable cost
= 20000 + (0.6 × 50000)
= 20000 + 30000
= $50000
Profit = Revenue - Cost
= $50000 - $50000
= $0
Based on the calculation above, the company should not buy the new equipment as no profit will be made while currently a profit of $1000 is made.
Answer:
$100338000.
Explanation:
Given: Inventory carrying= $100338000.
As entire inventory is been sold at current price, then revenue of the company will increase by $100338000, therefore contribution margin will also increase further by $10033800 for the Andrew corp.
∴ Contribution margin= $100338000.
Inventory carrying cost are the cost of holding inventory for a period of time until it is sold. it include warehousing cost, cost for keeping inventory safe, etc.
Answer:
Higher education should be pursued by people who think are capable of getting a degree. That means they have to demonstrate exceptional intellectual skills and a work and development ethos. It should be paid individually (usually by a personal fund kept by parents until someone reaches the college age), or by a scholarship if an individual proves to have exceptional cognitive levels.
I personally plan to continue higher education. I would like to major in English literature. Having in mind it's an often sought degree, I do not think I would be eligible for a fully paid scholarship. I would opt for partial funding from my parents' fund and partial funding from a scholarship.
<span>This is true. Financial managers can do a lot with the data provided by the accountant. Financial managers can prepare activity reports, financial forecasts and develop strategies to improve profitability. The managers can also use info to look for opportunities for expansion and acquisitions.</span>
