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defon
4 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]4 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.

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Ksenya-84 [330]

Answer:

The correct answer would be $73 Millions.

Explanation:

The amount of cash a company possesses is the net income which it generates over a period of time. Account receivables are also considered to be the cash amount for the company which it collects within that period. So as given in this question, we would not take $300 million Sales, as company will exclude app expenses from this amount and then the remaining amount will be considered as the Cash in hand. So $65 Million will be the net income and as the account receivables also increased to $8 Millions, we will include this amount in the net income as:

Total Cash = Net Income + Account Receivables

Total Cash = $65M + $8M

Total Cash = $73 Millions.

6 0
3 years ago
Credit rationing refers to A.the increase in the interest rate that occurs when the supply of credit increases. B.a restriction
sashaice [31]

Answer:

The answer to this question is B.a restriction in the availability of credit.

Explanation:

Credit restriction occurs when at the prevailing market interest rate, demand exceeds supply, but lenders are not willing to either loan more funds, or raise the interest rate charged, as they are already maximizing profits.

Hence the answer to this question is B.a restriction in the availability of credit.

8 0
3 years ago
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Arada [10]

Answer:

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3 years ago
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OLga [1]

Answer:

$70,100

Explanation:

The computation of the equipment recorded on a balance sheet is shown below:

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We simply added the above four items so that the recorded value of an equipment could come

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Marketing activities are the resources companies spend to promote their products and services. Through marketing activities, businesses can generate demand and interest in their products and increase awareness among potential customers.

marketing strategy helps you discover areas that will be impacted by business growth, thereby helping you create organizational plans that address customer needs. It helps organizations appropriately price their goods and services based on information gathered through market research.

Learn more about Marketing strategy brainly.com/question/25640993

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