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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.

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: Typically required on ________ loans when the down payment is less than ______% and loan-to-value ratio is in excess of ____%.
BARSIC [14]

Answer:

Mortgage, 20%, 80%

Explanation:

Typically required on Mortgage loans when the down payment is less than 20% and loan-to-value ratio is in excess of 80%. Loans with higher LTVs don't conform to Fannie Mae/Freddie Mac guidelines, so a lender may require PMI to offset the risk.

3 0
3 years ago
Which of the following is a variable expense?
Neporo4naja [7]

Answer:

car insurance

Explanation:

6 0
3 years ago
Read 2 more answers
Is the sales manager a subordinate? explain why?
Dafna1 [17]
Depending on your use of marketing and sales as complementary or subordinate functions, you can create a management structure that ensures no important duties fall through the cracks.
8 0
3 years ago
​Mercer, Inc. provides the following data for​ 2019: Net Sales Revenue Cost of Goods Sold The gross profit as a percentage of ne
Setler [38]

The question is incomplete as it is missing the figures. The complete question is,

Mercer, Inc. provides the following data for​ 2019:

Net Sales Revenue 598000

Cost of Goods Sold 350000

The gross profit as a percentage of net sales is​ ________. (Round your answer to two decimal​ places.)

Answer:

Gross profit as a percentage of net sales = 0.4147 or 41.47%

Explanation:

The gross profit is a profit earned by a business through its trading activity. It is calculated by deducting the cost of goods sold from the net sales revenue and it is the profit earned by a business before deducting any operating and non operating expenses of the business.

Gross profit = Net Sales - Cost of goods sold

Gross Profit = 598000 - 350000   = $248000

The gross profit as a percentage of net sales is,

Gross profit as a percentage of net sales = Gross profit / Net Sales

Gross profit as a percentage of net sales = 248000 / 598000

Gross profit as a percentage of net sales = 0.4147 or 41.47%

5 0
3 years ago
Rebecca Huang receives a regular salary of $2,600 a month and is paid 1/2 times the regular hourly rate for hours worked in exce
dimaraw [331]

The over time rate of pay is $22.5 overtime per hour. While the total gross pay at 43 hours is 667.5 dollars.

a. The regular salary = $2600 monthly

The annual salary = $2600 * 12

= 31200 dollars.

The weekly salary in a year

We have 52  weeks in a year

Weekly salary = 31200/52

= 600 dollars.

She works for 40 hours weekly.

Pay per hour = 600/40

= 15

The overtime pay per hour that Rebecca receives

15*1\frac{1}{2}

= 15 * 1.5

= 22.5

Therefore Huang's overtime pay is 22.5 dollars.

b. If she works 43 hours during the week

15 dollars * 40 hours = 600 dollars

43-40 = 3 overtime hours

3 x 22.50 per hour = 67.5 dollars.

The total gross wages = 600 dollars + 67.5 dollars

= 667.5 dollars.

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4 0
3 years ago
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