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A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units t

lutik1710 [3]

Answer:

It is more profitable to sell the units for scrap.

Explanation:

Giving the following information:

Defective units= 16,000 units

Selling price dor scrap= $2.60

Reworked cost= $4.80 each

Selling price= $8.10 each.

If the units are sold as-is, the company will be able to build 16,000 replacement units for $5.50 each and sell them at the full price of $8.10 each.

The cost of 16,000 units produced is a sunk cost, therefore, it shouldn't be a part of the decision making.

Sell as it is:

Sell scrap= 16,000*2.9= 46,400

New units= 16,000*(8.10 - 5.50)= 41,600

Total income= $88,000

Continue processing:

Reworked sales= 16,000*(8.1 - 4.8)= $52,800

It is more profitable to sell the units for scrap.

7 0

3 years ago

Two alternatives, code-named X and Y, are under consideration at Guyer Corporation. Costs associated with the alternatives are l

sergejj [24]

Answer:

It will be a financial disadvantage of Alternative Y over Alternative X

which menas, alternative X is better as their work is lower.

Explanation:

$\left[\begin{array}{cccc}&X&Y&$Differential\\$Material cost&-43000&-62000&-19000\\$Processing cost&-47200&-47200&0\\$Equipment rent&-17800&-17800&0\\$Occupancy cost&-16800&-25100&-8300\\&&&0\\$Total&-16800&-25100&-8300\\\end{array}\right]$

6 0

3 years ago

Find two competing products. Evaluate consumer reviews and ratings regarding these two products. Decide which is the superior pr

Vlada [557]

Dettol and Lifebuoy product comparison is taken

Explanation:

1. Features - The color of Dettol packaging is Green in color ,and Lifebuoy is Red in color. This makes the major physical difference in the products.

2.Benefits - Both oh them exhibit the same benefits of detoxing and use of disinfectant of germs. Soaps. liquid hand wash and hand sanitizers are the most common products of them.

3. Product Information- Dettol contains Chloroxylenol whereas Lifebuoy contains germ protection soap bars.

4.Style -Lifebuoy is a ring or horseshoe shaped and has a connecting line allowing the causality to be pulled to the rescuer in a boat.

5. Performance- Both the products have pros and cons attached to it. Where dettol is superior in some features whereas Lifebuoy has some superiority in other certain things.

Though both exhibit almost the same characters , it totally depends upon the person which they prefer over the two products.

5 0

4 years ago

Kosakowski Corporation processes sugar beets in batches. A batch of sugar beets costs $91 to buy from farmers and $17 to crush i

jekas [21]

Answer:

$29

Explanation:

The computation of the more profit or loss via processing one batch of sugar to the end products is shown below:

= Total sale in the case when it is processed further - processing cost

where,

Total sale in the case when it is processed further is

= $86 + $134

= $220

And, the processing cost is

= $91 + $17 + $38 + $45

= $191

So, the profit is

= $220 - $191

= $29

5 0

3 years ago

What factor is NOT included in determining the total cost of a loan? Select the best answer from the choices provided. A. credit

Pavel [41]

This is a tricky answer, because:

the length of the loan, the interest rate, and the down payment will all affect the total cost of the loan

--BUT--

your credit history can help determine the interest rate you are offered, the length of the loan offered, and the downpayment required.

I think this is an unfair question, but the answer the teacher is looking for is A. credit history because it has an INDIRECT effect on total cost and not a DIRECT effect like the others.

7 0

3 years ago

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