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jasenka [17]
3 years ago
13

The costs and revenues associated with two alternatives are listed below:

Business
1 answer:
Fudgin [204]3 years ago
6 0

Answer:

The correct option is A,alternative 2 because it has a higher profit

Explanation:

The profit analysis of both alternatives is done below:

                                                Alternative 1         Alternative 2

Projected revenue                   $100,000             $125,000

Costs:

unit level costs                         $20,000                $30,000

Batch-level costs                      $20,000                $25,000

Product-level costs                   $15,000                 $15,000

facility-level costs                     $10,000                  $10,000

total costs                                  $65,000                 $80,000

Profit(revenue-total costs)        $35,000                 $45,000

The correct answer is option A,as option 2 has a higher profit of $45,000 compared to alternative 1 of $35,000

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Answer:

We have the comparison below

Explanation:

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PVIF at 12%                      0.89286   0.79719      0.71178

PV of expenses                 17857    21524       24201

Cumulative PV of expenses 17857 39381 63582

EOY MV                                        -1000 -1750 -2500

PV of MV                                 -893 -1395 -1779

Total PW (4000+ PV of expenses - PV of MV) 22750   44776    69361

P/A                                            0.89286 1.69005 2.40183

EUAC                                     25480 26494 28879

3 0
3 years ago
"The spot price of the market index is $900. A 3-month forward contract on this index is priced at $930. What is the profit or l
Mademuasel [1]

Answer:

$10 profit

Explanation:

In this question, we are asked to calculate the profit or loss to a short position.

Firstly, we identify that the spot price of market index is $900.

Now, a three months forward contract equals a value of $930.

Raising the index to $920 at the expiry date is obviously a profit to the short position.

To calculate the profit here, we simply subtract the index at expiry date from the three months forward contract.

Mathematically, this is equal to $930-$920 = $10 profit

8 0
3 years ago
2. How are school rules similar to state and federal laws? What woud the typical American high school be like if there were no r
jenyasd209 [6]
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7 0
3 years ago
True or false? you have to be careful because other people will try to steal your idea.
Elanso [62]
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7 0
3 years ago
High-Low Cost Estimation and Profit Planning Comparative 2007 and 2008 income statements for Dakota Products Inc. follow: DAKOTA
Vika [28.1K]

Answer:

(a)

5,500 units

(b)

6,125 units

Explanation:

First, we need to calculate the per unit selling price.

                        2007       2008

Unit sales        5,000      8,000

Sales revenue $60,000 $96,000

Selling Price    $12           $12

Now we need th separate the vairbale and fixed cost from total expense using high low method

Variable cost = ( Higher activity Expense - Lower activity Expense ) / ( Higher activity - Lower activity )

Variable cost = ( $76,000 - $64,000 ) / ( 8,000 units - 5,000 units )

Variable cost = $12,000 / 3,000 units = $4 per unit

Fixed cost = $76,000 - ( $4 x 8,000 units ) = $44,000

Contribution Margin = Selling Price - Variable cost = $12 - $4 = $8

(a)

Breakeven Point = Fixed Cost  / Contributin margin per unit

Breakeven Point = $44,000 / $8 = 5,500 units

(b)

Target sales = ( Fixed cost + Desired Profit ) / Contribution margin per unit

Target sales = ( $44,000 + $5,000 ) / $8 = 6,125 units

8 0
3 years ago
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