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
defon
3 years ago
6

Process A has fixed costs of $1000 and variable costs of $5 per unit. Process B has fixed costs of $500 and variable costs of $1

5 per unit. What is the crossover point between process A and process
B?

a. 50 units
b. 200 units
c. $2,500
d. $5,000
e. $9,500
Business
1 answer:
nadezda [96]3 years ago
3 0

Answer:

a. 50 units

Explanation:

The Crossover Analysis is totally inevitable when we need to identify the point whether we can switch one product to another that do have similarity in benefit, while they have different variable and fixed costs.

Then we should find the point for Crossover Units. Crossover Unit=(Fixed Cost 1 –Fixed Cost 2)/(Variable Cost 2-Variable Cost 2)

We have:

Process A with Fixed Cost=1000 and Variable Cost=5 for unit

Process B with Fixed Cost=500 and Variable Cost=15 for unit

Crossover point of unit=(Fixed Cost 1 –Fixed Cost 2)/(Variable Cost 2-Variable Cost 2)= (1000-500)/(15-5)=50 units.

This means that at 50 units, the total cost of each of the two projects is equal.  If you expect to sell more than 50 units then Project A would be the best choice.  If you expect to sell less than 50 units then Project B would be the best choice.

You might be interested in
RLW-II Enterprises estimated that indirect manufacturing costs for the year would be $60 million and that 12,000 machine hours w
Montano1993 [528]

Answer: $3,150,000

Explanation:

Total cost of production will be the total sum of the material costs, labor costs and indirect costs.

Indirect Costs

It was estimated that 12,000 machine hours would be used at a cost of $60 million.

Indirect cost per machine hour is;

= 60,000,000/12,000

= $5,000 per hour

With 200 machine hours, indirect cost is;

= 200 * 5,000

= $1,000,000

Total cost of production = 1,250,000 + 900,000 + 1,000,000

= $3,150,000

5 0
3 years ago
A business owner makes 60 items by hand in 45 hours. She could have earned $35 an hour working for someone else. Her total expli
Nezavi [6.7K]
The Answer Is : $-720
8 0
3 years ago
Holders of common stock receive certain benefits, such as a residual claim, which is the
Elenna [48]
<span>right to share in any remaining assets after creditors have been paid off, should the company cease operations. A residual claim is one benefit that common stock holders can receive. This claim takes effect once the company itself is liquidated. The assets that are left upon liquidation are divided evenly, and the common stock holders receive a proportional part of the assets at liquidation. Among this, common stock holders receive dividends.</span>
7 0
3 years ago
9. Should all poetry, music or art be beautiful? Explain.
Leviafan [203]
This question is mainly about YOUR opinion. Many will say that it will, but some will say it shouldn't. This is based entirely on your opinion. 
8 0
3 years ago
If a firm decides it is in the best interest to collaborate on a development project, how would you recommend the firm choose a
Ahat [919]

Answer:

We live in a related world more so now than any time in recent memory before.In this scenery no business can have all the assets to take an interest completely in the worldwide commercial center without key unions, coordinated efforts and organizations.  

Effective endeavors are continually searching for assets to ceaselessly enhance their ebb and flow tasks and have the accepted procedures to stay ahead in the race.  

Joint effort is a vehicle to supplement the assets of an association and addition abilities to meet certain all around characterized targets. The substance might be deficient with regards to specific assets like money related quality, aptitudes and deliberately it might not have any desire to put resources into their zones of "shortcoming" for some an explanation.  

The firm might need to investigate for an imminent accomplice from its realized business system to begin with. Business and informal communities can furnish leads by taking part in conversations with them. Different zones for prospecting could be from the databases of mechanical improvement offices. Tried and true outsider specialist co-ops - offices right now be locked in to discover reasonable possibilities.  

By the day's end, organizations are about connections. Common regard for one another and shared qualities are important to have an effective organization to meet every others key business targets through such a joint effort. Essentially each ought to be expertly dedicated to such a dare to guarantee goals are met in soul and word.  

The Collaboration ought to be reported in an itemized way that would show the particular jobs of the separate gatherings.  

The manual should record governing rules for taking an interest accomplices to assume out their jobs genuinely.  

Key audit gatherings, choices on money related expenses must incorporate the state of both the substances in a reasonable way.  

Occasional outsider reviews of tasks ought to be a fundamental part of the manual.

3 0
3 years ago
Other questions:
  • Ava and her husband, Leo, file a joint return and are in the 24% Federal income tax bracket. Ava’s salary is $75,000. Her employ
    12·1 answer
  • If you were an engineer of an actual roller coaster, what information would you need to know in order to ensure that your coaste
    6·2 answers
  • What can you infer about the family's financial situation? explain how it has changed over the years?
    12·2 answers
  • 5-year Treasury bonds yield 5.5%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on 5-year bonds is 0.4
    7·1 answer
  • If your income increases by $1,500 and you only consume $900 of it, your marginal propensity to consume would be equal to: a. 0.
    6·1 answer
  • Megan Brink is offered the possibility of investing $6,651 today at 6% interest per year in a desire to accumulate $10,000.
    13·1 answer
  • A monopolistically competitive firm chooses A. price, but output is determined by a cartel production quota.B. the price, but co
    14·1 answer
  • When the amount earned on a deposit has become part of the principal at the end of a specified time period the concept is called
    14·1 answer
  • PLEASE HELP ME!!!!
    14·1 answer
  • WHAT DO YOU MEAN BY MARKET DEVELOPMENT ? EXPLAIN.​
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!