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elena55 [62]
3 years ago
13

Robbins Co. has been producing a part for a camera they manufacture. The costs for this part are as follows: a. Picture Robbins

has an opportunity to purchase this part rather than manufacture it. b. To purchase the part will cost $3 a unit. If the part is purchased, fixed costs will be reduced by 20%. c. Should Robbins Co. make or buy this part. d. Show how you arrived at your decision.
Business
1 answer:
Karolina [17]3 years ago
8 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

The company should buy the product.

Notes:

1. Variable cost will not be incurred in buy option as variable cost is directly linked to production quantity. In cade of no production, this will be zero.

<em>You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  </em>

Download xlsx
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muminat
Base on my research this type of argument is baseless but it depends on the 100% free enterprise market system. With this system, the government doesn't have regulatory powers to protect the interest of the consumers from the financial institutions. In a situation that without the interest rate modulation, the rate charged on loans could be 40% while the rate paid on savings could be 1%. If this happens the financial institutions will not have to pay FDIC insurance to ensure the solvency of the overall system. 
3 0
3 years ago
Data concerning Dorazio Corporation's single product appear below:
Reika [66]

Answer:

30600 less 25 000 = 5600

increase in net income

Explanation

                                               1400 units                                               1000 units

sales                                       224 000                                                  160 000  

(1400*160) (1000*160)                                                                          

variable costs                   (106 400)                                                    (48 000)

(1400*76) (1000*48)                                                      

contribution margin            117 600                                                     112 000                          

fixed costs                             (87 000)                                                  (87 000)                                              

net operating income            30 600                                                   25000                              

6 0
3 years ago
An augmented product is any extra value that is attached to a physical product that is sold.
sesenic [268]
An augmented product is something that has physical and non-physical attributes that add to the value of the product itself. 
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Thomas had conducted a thorough pretest before the new ad campaign,so he was fairly sure the elements would work together.A lot
sergejj [24]

Answer:

C) tracking.

Explanation:

Since in the question, it is mentioned that Thomas has conducted a thorough pretest i.e prior to new ad campaign in order to work the elements together

Also he is monitoring the sales volume on a daily basis as it is part of his tracking which tracks the performance of the work so that he get to know how much work is completed and how much work is pending.

4 0
3 years ago
Kelly Slater owns a parcel of land in Palm Springs and is considering two possible development options which both use his signat
expeople1 [14]

Answer:

d. Choose Option B because it has a higher NPV

Explanation:

The computation is shown below:

For Option A:

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Present Value of cash flows = Cash flow ÷ Discounting rate

= $2 ÷  10%

= $20 million

Now

NPV = $20 - $10

= $10 million

We know that

IRR is the rate at which the NPV will be zero

So,  2 ÷  r - 10 = 0

r = 20%

For Option B:

Investment = $50 million

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NPV = $65 - $50 = $15 million

we know that

IRR is the rate at which the NPV will be zero

So, 6.5÷ r -50 = 0

r = 13%

Based on NPV, Option B should be selected as it contains higher NPV as compared to option A.

However, Based on IRR, Option A should be chosen as it contains higher IRR and a higher IRR represent a higher profit percentage

 

7 0
3 years ago
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