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miv72 [106K]
3 years ago
15

Management is considering using a new component that would increase the unit variable cost by $50. Since the new component would

improve the company's product, the marketing manager predicts that monthly sales would increase by 500 units. What should be the overall effect on the company's monthly net operating income of this change if fixed expenses are unaffected
Business
1 answer:
katrin [286]3 years ago
7 0

Answer:

Because fixed costs will not change, the overall effect on the company's monthly net operating income will be equal to the contribution margin of the product once the new component is added.

Explanation:

The contribution margin is equal to: Revenue - Variable Costs.

We already know that the variable cost will be increased by $50 once new component is added, and that monthly sales are expected to increase by 500 units after that.

Depending on the price of the product, the amount sold, and the variable costs, we get the contribution margin, and this contribution margin will be exactly the same as the overall effect on the net operating income.

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You are starting a family pizza parlor and need to buy a motorcycle for delivery orders. You have two models in mind. Model A co
harina [27]

The equivalent annual costs of each model are as follows:

                                                Model A       Model B

Equivalent annual costs     $2,389.26   $3,008.47

Data and Calculations:

                                              Model A       Model B

Costs of motorcycle              $8,200        $13,600

Expected years of usage      7 years        9 years

Annual maintenance costs    $760          $740

Cost of capital = 9%

Annuity factor                       5.03295        5.99524

PV of annual maintenance  $3,825.04   $4,436.48

Total NPV of costs             $12,025.04  $18,036.48

Equivalent annual costs   $2,389.26  $3,008.47

                          ($12,025.04/5.03295)  ($18,036.48/5.99524)

Thus, the equivalent annual costs of each model are the dividend of the Total NPV costs divided by the Annuity Factor.

Learn more about the equivalent annual costs (EAC) here: brainly.com/question/25343720

8 0
2 years ago
. _________________ results when an economy experiences high unemployment and high inflation at the same time
telo118 [61]

high prices of goods and the change of currency

Explanation:

the the government loses a huge amount of money the currency demands a high exchanging rate

6 0
2 years ago
A manager is any person who oversees the work of other. Is it true or false ?​
Fofino [41]

Answer:

yes

Explanation:

5 0
3 years ago
Read 2 more answers
Army Crew Team Case study required questions: Why does the Varsity team lose to the JV team? What should Coach P. have done diff
bagirrra123 [75]

Answer:1. The reason that the varsity team lost to JV team is lack of working together as a team.

2.Coach P. when selecting the rowers for the two teams should have looked at both the psychological(personality types and traits, if they are leader or followers etc.) as well as the physical aspect ( Stamina, Speed ,Coordination, Strength etc.) of each individual.

explanation:

1:Even though the varsity team consisted of the best individuals for speed , strength, coordination and endurance, they lacked the cohesiveness to perform as a unit. Each of the eight individual rowers had to be single-mindedly attuned to one another in order to synchronize their rowing and perform in unison. Unfortunately, the team also too many disruptor and lacked a leader.

2:The Coach should have experimented more by creating different scenarios to see how well the individuals responded and performed to one another in different situations when it came to a team environment. For example, putting the rowers in total control of the team's dynamics is the best hands on lesson they could ever experience. This would have allowed the rowers a deeper understanding what it take to be winner from a loser.

3.Coach P. should switch both the teams for Tuesday since after extensive observations and evaluation he has witnessed JV work as a better team. The JV team possessed better synergy, synchronization, and shared a common goal causing them to win more frequently than the Varsity team, despite the fact that the Varsity team had better individual members. In addition, there has been a precedent for switching boats. During the mid-1990’s, the Cornell Coach faced asimilar situation as Coach P. and as a result of him making the switch, both the JV and Varsity teams ended up winning the Eastern Championships. This demonstrates that it is more likely thatthe teams will win if they agree to switch. Moreover, even if Coach P. decided not to switch the teams, it would have taken quite a while to rebuild Varsity’s team structure, morale, and overall team synergy, implying that they probably would not have been ready in time to compete and win the race as the Varsity team anyway.

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3 years ago
The first unit of production takes 12 hours to produce and the learning rate is expected to be 80 percent. How long will it take
Assoli18 [71]

It will take 5.7 hrs to produce the sixth unit.

Tn=T1(n^b)

Tn: Time required to complete the nth task

b = ln( r)/ln(2)

r=learning rate %

T1=12 hrs

r=80%

n=16

b=ln(0.8)/ln(2)

b= -0.32193

Tn=12*(16^-0.32193)

4.9152

Greater than 4hrs but less than or equal to 5.7 hrs

Agricultural products are a general term for many crops, including fruits and vegetables. More specifically, the term produce often means that the produce is fresh and generally in the same condition as when it was harvested. Causes; Cause: Vapor generation.

To bring to life through intellectual or creative ability: to produce great paintings. To make or manufacture: to manufacture automobiles for export.

The products are agricultural products, especially fruits and vegetables. An example of a product is a carrot. Production is defined as created or coming into existence. An example of a product is painting a work of art.

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