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mojhsa [17]
3 years ago
12

A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 16,

000 defective units that cost $5.20 per unit to manufacture. The units can be a) sold as is for $2.80 each, or b) reworked for $4.80 each and then sold for the full price of $8.00 each.
Business
1 answer:
Virty [35]3 years ago
5 0

Answer:

If the company reworks the units, income will increase by $6,400 (compare to sell them as-is).

Explanation:

Giving the following information:

The company has 16,000 defective units.

<u>We will not take into account the original cost of the units. It is irrelevant to the decision making. It will remain constant in both options.</u>

Option A:

Effect on income= 16,000*2.8= $44,800

Option B:

Effect on income= 16,000*(8 - 4.8)

Effect on income= $51,200

If the company reworks the units, income will increase by $6,400 (compare to sell them as-is).

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Answer:

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8 0
3 years ago
A 12-year, 5% coupon bond pays interest annually. The bond has a face value of $1,000.__________ Fill in the blank, read surroun
Nata [24]

Answer:

12.38% decrease

Explanation:

Given the following parameters

6%

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Market yield I= 6 === 4.5

Present Value = 916.16 == 1045.59

PMT (annuity payment) = 50 (5%x1000)

Future value = 1000

Therefore, to solve for the percentage change, we have in the price of this bond in this situation, we have (916.16-1045.59) / 1045.59 = -0.1238

Hence, 12.38% decrease is the percentage change in the price of this bond if the market yield rises to 6% from the current yield of 4.5%,

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4 years ago
Match each type of employment with its definition (2 points)
Rainbow [258]

Each type of employment has been matched with its definition thus:

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There are different causes of employment. Frictional unemployment is the timeframe between the period an individual lost his job and seeks another.

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brainly.com/question/305041

4 0
3 years ago
Ron is a sales representative for Staples. He works in a business-to-business environment trying to sell office supply products
grin007 [14]

Answer: C) ​Technical selling

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Technical selling involves the sales personnel addressing the need of customers, explaining the type and features of the product they needs, network with them and make sure they are satisfied.

A technical sales person must have the ability for effective communication and have good interpersonal skills so as to maintain a good relationship with customers.

6 0
4 years ago
A consumer has $180 in monthly income to spend on two goods, D and G, where D is on the y-axis. The price of good D, PD is $6, a
olga2289 [7]

Answer:

The number of units of good G that can be purchased if all income is used to purchase good G is 15 units.

Explanation:

Since D is on the y-axis, indicating G is on the x-axis, the formula for calculating the marginal rate of transformation (MRT) is given as follows:

MRT = - PG / PD …………………. (1)

Where:

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Substituting the relevant values into equation (1) and solve for PG, we have:

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