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
kompoz [17]
3 years ago
11

A company is considering two designs for a machine in its manufacturing line. The first, called machine A, will cost $160000 in

fixed costs and will cost $80 per unit in variable costs, for each unit it produces. The second, called B, will cost $270000 in fixed costs and will cost $2 per unit in variable costs, for each unit it produces. At what volume of production will the two machines cost the same
Business
1 answer:
ExtremeBDS [4]3 years ago
6 0

Answer:

The indifference point is 1,410 units

Explanation:

Giving the following information:

Machine A:

Fixed costs= $160,000

Unitary variable cost= $80

Machine B:

Fixed costs= $270,000

Unitary variable cost= $2

<u>First, we need to structure the total cost formula for each machine:</u>

Machine A= 160,000 + 80x

Machine B= 270,000 + 2x

x= number of units

<u>Now, we equal both formulas and isolate x:</u>

160,000 + 80x = 270,000 + 2x

78x = 110,000

x= 110,000/78

x= 1,410 units

The indifference point is 1,410 units

You might be interested in
Mass media can be employed to publicize a cause or product by distributing information that is distorted or exaggerated. What is
Kryger [21]

Explanation:

to you ggagsusgfaaywugahagagttsgsy<em>y</em><em>y</em><em>e</em>

6 0
2 years ago
Manufacturing overhead data for the production of Product H by Shakira Company are as follows.Overhead incurred for 45,100 actua
Fittoniya [83]

Answer:

Total overhead cost variance                                      $

Standard fixed overhead cost ($9 x 45,100 hrs)    405,900

Less: Actual fixed overhead cost                             <u>411,000 </u>

Total overhead cost variance                                   <u> 5,100 (A)</u>

Explanation:

Total overhead variance is the difference between standard fixed overhead cost and actual fixed overhead cost. Standard fixed overhead cost is overhead rate multiplied by actual direct labour hours. Overhead rate is the total of variable overhead and fixed overhead rate ($8 + $1 = $9).

8 0
3 years ago
Following is a partial process cost summary for Mitchell Manufacturing's Canning Department. Equivalent Units of Production Dire
tensa zangetsu [6.8K]

Answer:

5. $232,000.

Explanation:

The computation of the  total conversion costs transferred out of the Canning Department equals to

= Number of units completed and transferred out × Cost per equivalent unit

= 80,000 units × $2.90

= $232,000

In order to find out the total conversion cost, we simply multiplied the number of units completed and transferred out with the cost per equivalent unit

3 0
2 years ago
Suppose interest rates on residential mortgages of equal risk were 8% in california and 10% in new york. could this differential
Aleks04 [339]

Regional mortgage rate differentials do exist, depending on supply & demand conditions in the different regions. However, high rates in one region would attract capital from other regions, and the end result would be a diffferential that was just sufficient to cover the costs of causing the transfer. Differentials are more likely in the residential mortgage market than the business loan market, and not at all likely for the large, nationwide firms, which do their borrowing in the lowest-cost money centers thereby quickly equalizing rates for large corporate loans. Interest rates are more competitive, making it easier for small borrowers, and borrowers in rural areas, to obtain lower cost loans

4 0
3 years ago
Start an argument with yourself I want to read it
xenn [34]
I don’t really know what to say so =
7 0
3 years ago
Read 2 more answers
Other questions:
  • Melissa pellerano does consulting for the yellow pages. Her clients want to know how much of an increase in customers' awareness
    5·1 answer
  • Chamonix Chateau Rentals. You are planning a ski vacation to Mt. Blanc in Chamonix, France, one year from now. You are negotiati
    11·1 answer
  • Debit postings to the individual accounts in an accounts receivable subsidiary ledger generally come from the
    10·1 answer
  • What’s the purpose of a ramp meter
    11·2 answers
  • Suppose some firms exit an industry characterized by monopolistic competition. We would expect the demand curve of a firm alread
    10·1 answer
  • A project that provides annual cash flows of $18,200 for nine years costs $88,000 today.
    12·1 answer
  • Assume that the price for swimming pool maintenance services has risen and sales of these services have fallen. one can conclude
    12·1 answer
  • Why is it important to research a school’s curriculum before deciding whether to go there?
    7·1 answer
  • At the end of the current year, using the aging of receivable method, management estimated that $24,750 of the accounts receivab
    10·1 answer
  • Mr. Sanderson works for a chain of clothing stores. He gathers information so he can figure out the best way to organize the sto
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!