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Elina [12.6K]
3 years ago
7

A small producer of machine tools wants to move to a larger building, and has identified two alternatives. Location A has annual

fixed costs of $100,000 and variable costs of $13,000 per unit; location B has annual fixed costs of $300,000 and variable costs of $8,000 per unit. The finished items sell for $18,000 each.For what range of output would location A be superior?
Business
1 answer:
xenn [34]3 years ago
6 0

Answer:

Location A is superior to up 40 units. From there Location B is better

Explanation:

Giving the following information:

Location A:

Fixed costs of $100,000

Variable costs of $13,000 per unit.

Location B:

Fixed costs of $300,000.

Variable costs of $8,000 per unit.

The finished items sell for $18,000 unit.

Contribution margin Location A= 18000-13000= 5,000

Contribution margin Location B= 18000 - 8000= 10,000

Income formula location A= 5000*Q - 100000

Income formula location B= 10000*Q- 300000

5000*Q - 100000= 10000*Q - 300000

200000= 5000Q

Q= 40 units

Location A is superior to up 40 units. From there Location B is better.

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Answer:

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Explanation:

Bonds are investments in the form of loans that companies provide. The firm pays investors a coupon yield, which is the annual or semiannual interest paid on the principal of the bond purchased. The payments continue until the bond reaches its maturity or the amount of the principal is completely paid off.

3 0
3 years ago
Customers can purchase HP computers from retail stores like Best Buy and Office Depot, online directly from HP, and through vari
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Answer:

Multiple

Explanation:

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5 0
3 years ago
The Assembly Department shows the following information: Beginning Work in Process Ending Work in Process Units Transferred Out
Margarita [4]

Answer:

a) 75600.

Explanation:

Given;

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4 0
3 years ago
If country A exports $10 billion worth of goods to country B and imports $8 billion worth of goods from country B, then country
mr_godi [17]

Answer:

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6 0
3 years ago
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