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
Pavel [41]
3 years ago
6

You currently purchase a part used in your production process from an outside supplier, and have decided to begin making this pa

rt in-house. You have two equipment options for moving production in-house: special-purpose equipment and general-purpose equipment. Cost information for these two options is as follows: ALTERNATIVE FIXED COST VARIABLE COST Special-Purpose Equipment $200,000 per year $15 per unit General-Purpose Equipment $50,000 per year $20 per unit For what range of output is the Special-Purpose Equipment the low-cost option? A) 30,000 or more units per year B) 40,000 or more units per year C) 0 - 30,000 units per year D) 0 - 40,000 units per year
Business
1 answer:
Gala2k [10]3 years ago
4 0

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Special-Purpose Equipment:

Fixed costs= $200,000 per year

Unitary variable cost= $15 per unit

General-Purpose Equipment:

Fixed costs= $50,000 per year

Unitary variable cost= $20 per unit

We need to find the cost function:

Special-Purpose= 200,000 + 15*q

General-Purpose= 50,000 + 20*q

200,000 + 15q = 50,000 + 20q

150,000=5q

30,000 = q

30,000 units is the indifference point. From 30,000 units Special-Purpose is cheaper.

You might be interested in
In the long run, an increase in aggregate demand from a position of full employment leads to:
Bess [88]

higher prices and higher outputs

8 0
3 years ago
Fvbfffbvbfbfbt rgrfgvfvfv
Dmitry [639]

Answer:

I do not understand the letters of which you are writing.

5 0
3 years ago
Policies based on ABC analysis might include investing __________.A. extra care in forecasting for C items. B. more in supplier
Ilia_Sergeevich [38]

Answer:

Correct option is B

more in supplier development for A items.

Explanation:

In materials management, the ABC analysis is an inventory categorization technique. ABC analysis divides an inventory into three categories—"A items" with very tight control and accurate records, "B items" with less tightly controlled and good records, and "C items" with the simplest controls possible and minimal records.

The ABC analysis provides a mechanism for identifying items that will have a significant impact on overall inventory cost, while also providing a mechanism for identifying different categories of stock that will require different management and controls.

6 0
3 years ago
Which of the following is an essential part of being an entrepreneur?
Molodets [167]

Answer:

B. Taking risks.

Explanation:

4 0
3 years ago
A small market orders copies of a certain magazine for its magazine rack each week. Let X 5 demand for the magazine, with pmf Su
Oksanka [162]

Answer:

See explanation below.

Explanation:

Let X the random variable that represent the demand for the magazine, the pmf for X is given by:

X       1            2           3          4        5        6      

P(X)  1/15      2/15       3/15     4/15   3/15     2/15

3 magazines

For this case the total spent is 2*3 = $ 6

And the net revenue for this case would be:

$4-$6 = -$2 , X=1 (demand 1)

$4*2-$6 = $2 , X=2 (demand 2)

$4*3-$6 = $6 , X=3 (demand 3)

For the values of X=4,5,6 the net revenue will be $6 since the number of magazines is 3

And the expected value for the net revenue would be:

E(R) = \frac{1}{15} *(-2) +\frac{2}{15} *(2) +\frac{3}{15}*(6) + \frac{4}{15}*(6) +\frac{3}{15}*(6) +\frac{2}{15}*(6) = \frac{74}{15}=4.93

4 magazines

For this case the total spent is 2*4 = $ 8

And the net revenue for this case would be:

$4-$8 = -$4 , X=1 (demand 1)

$4*2-$8 = $0 , X=2 (demand 2)

$4*3-$8 = $4 , X=3 (demand 3)

$4*4-$8 = $8 , X=4 (demand 4)

For the values of X=5,6 the net revenue will be $8 since the number of magazines is 4

And the expected value for the net revenue would be:

E(R) = \frac{1}{15} *(-4) +\frac{2}{15} *(0) +\frac{3}{15}*(4) + \frac{4}{15}*(8) +\frac{3}{15}*(8) +\frac{2}{15}*(8) = \frac{80}{15}=5.33

As as we can see we have a higher expected value for the case with 4 magazines.

5 0
3 years ago
Other questions:
  • Which career pathway describes the two main aspects of the Business, Management, and Administration career cluster?
    6·2 answers
  • Why are computer skills an important part of online learning?
    7·2 answers
  • For each example of a reward, identify whether it is an extrinsic or intrinsic reward.1)The employees were happy with the new la
    6·1 answer
  • Did I do this finance question correctly?<br><br> (Please help asap)
    8·1 answer
  • How are accounts payable, denominated in another currency, reported on a U.S. company's balance sheet? A. At the exchange rate w
    12·2 answers
  • The management accountant at light manufacturing oversees the​ company's dayminustominusday operations at the firm. the manageme
    14·1 answer
  • The FIFO method provides a major advantage over the weighted-average method in that: A. the calculation of equivalent units is l
    14·1 answer
  • Itemise the importance of marketing in an economy <br><br>​
    8·1 answer
  • Name two types of domestic sewing machine​
    6·2 answers
  • As a consumer consumes more of a good or service, the additional satisfaction of consuming the additional units goes down. This
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!