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
kykrilka [37]
3 years ago
6

A company has a process that results in 34000 pounds of Product A that can be sold for $8 per pound. An alternative would be to

process Product A further at a cost of $227800 and then sell it for $14 per pound. Should management sell Product A now or should Product A be processed further and then sold? What is the effect of the action?
Business
1 answer:
serg [7]3 years ago
8 0

Answer:

After calculating, we get to know that the Product A should be sell now because, it show a difference of $23,800 through which company can earn more in the future. As the company will be better off by $23,800

Explanation:

For calculation, following things need to be considered which is shown below:

1. Product A process costing = Pounds × Per pound price

                                            = 34,000 × $8

                                            = $272,000

2. Product A costing after selling = Pounds × sale price per pound

                                                   = 34,000 × $14

                                                   = $476,000

3. Difference of costing :

=  Product A costing after selling - Product A process costing

= $476,000 - $272,000

= $204,000

4. Invested amount = $227,800

5. Actual Difference = Invested amount - costing difference

                                  = $227,800 - $204,000

                                  = $23,800

After calculating, we get to know that the Product A should be sell now because, it show a difference of $23,800 through which company can earn more in the future. As the company will be better off by $23,800

You might be interested in
Beach Surf Boards is making a decision on whether to add long boards as a new product line to complement its short boards. A rec
Verizon [17]

Answer:

profit increase by 750 dollars

Explanation:

We must base our analisys considering only the loan board associated cost:

<em><u>contribution per long board:</u></em>

300 sales price - 225 variable cost = $75

total contribution for 250 units:

250x$75 = 18,750

<em><u>increase in fixed cost:</u></em>

69,000 - 51,000 = 18,000

incremental operating profit:

18,750 contribution - 18,000 fixed cost = 750

4 0
3 years ago
Your business partner describes this as a high positive correlation. Is your partner correct? Why or why not? (2 points)
Nina [5.8K]

Answer:

The trend line lies on the points (0,100) and (15,900)

Explanation:

5 0
2 years ago
Read 2 more answers
In which of the following situations would it be important for a successful, existing
Tamiku [17]
The business plan is the blueprint for your business. If you wanted to build a house, you wouldn't walk over to an empty lot and just start nailing boards together. Starting a business without a business plan is just as risky.

hope this helps :)

7 0
3 years ago
On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following informati
riadik2000 [5.3K]

Answer:

estimated inventory on July 8 = $280000

so correct option is d. $280,000

Explanation:

given data

sale = $700,000

Inventory = $130,000

Purchase = $640,000

to find out

estimated inventory on July 8

solution

first we get here total available inventory for sales that is

Total Available inventory for sales = Inventory + Purchase   ...........1

put here value

Total Available inventory for sales =  $130,000 + $640,000

Total Available inventory for sales = $770,000

so now we get Inventory sols that is

Inventory = (Sales - 30% of sales)     ....................2

Inventory =  $700000 - ( 0.30 × $700000 )

Inventory = $490,000

so now we get here estimated inventory on July 8 that is express as

estimated inventory = Total Available inventory for sales - Inventory   .........3

estimated inventory =  $770,000 - $490,000

estimated inventory = $280000

so correct option is d. $280,000

7 0
3 years ago
You invest 70% of your money on a stock with expected return of 15% and standard deviation of 22%. The rest of your money is inv
Ahat [919]

Answer:

The portfolio return is 12.6% and the portfolio SD is 15.4%. Thus, option a is the correct answer.

Explanation:

The expected return of a portfolio is the weighted average of the individual stock returns that form up the portfolio. Thus, the expected return for a two stock portfolio is,

Return of Portfolio =  wA * rA  +  wB * rB

Where,

  • w represents the weight of each stock in the portfolio
  • r represents the return of each stock

Portfolio return = 0.7 * 0.15  +  0.3 * 0.07  =  0.126  or 12.6%

The standard deviation of a two stock portfolio containing one risky and one risk free asset is the weight of risky asset in the portfolio multiplied by the standard deviation of the risky asset. The risk free asset has zero standard deviation.

Standard deviation of such a portfolio is,

Portfolio SD = w of risky asset * SD of risky asset

Portfolio SD = 0.7 * 0.22  

Portfolio SD = 0.154 or 15.4%

4 0
3 years ago
Other questions:
  • Which of the following best describes an economic system?
    13·2 answers
  • Suppose French chocolate soufflé is an inferior good. When income increases and the number of producers in the market decreases
    12·1 answer
  • Eileen is considering assignments, training programs, and development opportunities that she will need in preparation for being
    8·2 answers
  • The listing and selling brokers agree to split a 7% commission fifty-fifty on a $96,900 lot sale. The listing broker is on a 30%
    6·1 answer
  • When solving for a present value, all cash flows should be discounted from the A : future to the present. B : the past to the fu
    7·1 answer
  • Because customer preferences must be considered, _____ plays an important role in product-line decisions.
    15·1 answer
  • If a firm has the market price of the firm's common stock of $500 and its annual earnings per share of $50 , then the firm has a
    7·1 answer
  • Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil f
    10·1 answer
  • Bay area peeps zoom anyone? ...bored lol
    10·1 answer
  • The __________ system is a free online service that allows employers to check the legal status of their employees.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!