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
Drupady [299]
2 years ago
12

Vihaan Chemicals Company processes a number of chemical compounds used in disinfecting health club fitness equipment. One compou

nd is decomposed into two chemicals: flexalene and soreaphine. The cost of processing one batch of compound is $75,000, and the result is 6,400 gallons of flexalene and 8,000 gallons of soreaphine. Vihaan Chemicals can sell the flexalene at split-off for $12.00 per gallon and the soreaphine for $6.15 per gallon. Alternatively, the flexalene can be processed further at a cost of $8.40 per gallon (of flexalene) into lactine. It takes 2 gallons of flexalene for every gallon of lactine. A gallon of lactine sells for $63.
Required: 1. Which alternative is more cost effective and by how much? NOTE: DO NOT round interim calculations and, if required, round your answer to the nearest dollar. by $ 2. What if the production of flexalene into lactine required additional purchasing and quality inspection activity? Every 550 gallons of flexalene that undergo further processing require 22 more purchase orders at $10 each and 18 more quality inspection hours at $26 each. Which alternative would be better and by how much? NOTE: Round interim calculations and your final answer to the nearest cent. by $_______.
Business
1 answer:
nata0808 [166]2 years ago
6 0

Answer:

Vihaan Chemicals Company

1. The more cost-effective alternative is to process Flexalene further into Lactine.  The gain for further processing is $71,040.

2. The better alternative is to process Flexalene further into Lactine.  The gain for further processing is now $63,034.

Explanation:

a) Data and Calculations:

Cost of processing one batch of compound = $75,000

Result of processing the compound:

                                                   Flexalene     Soreaphine

Gallons processed                        6,400            8,000

Split-off selling price per unit     $12.00             $6.15

Further processing cost per gal. $8.40

Selling price of Lactine = $63 per gallon

Sales revenue from Sale of Flexalene at split-off = $76,800

Net Sales revenue from Sale of Lactine after further processing of Flexalene = $147,840 ($63 * 6,400/2) - ($8.40 * 6,400)

Gain from further processing of Flexalene into Lactine = $71,040 ($147,840 - $76,800)

2. Additional costs for further processing:

Purchasing order cost =  $2,560 (6,400/550 * 22 * $10)

Quality inspection cost = $5,446 (6,400/550 * 18 * $26)

Total additional costs =   $8,006

Gain from further processing of Flexalene into Lactine = $63,034 ($147,840 - $76,800 - $8,006)

You might be interested in
The simple interest rate is 7% per year. if james deposits 10,000 at the end of 18 months coursehero
monitta

Deposit (PV): $10,000

Years between the 18th month and the fifth year (n) = 3.5

(I)=7% yearly interest rate

Simple interest approach accumulated value equals P*(1+(i*n)).

=1000*(1+(7%*3.5))

=1245

Thus, the total value at the end of five years will be $1245.

Compound interest method accumulated value equals P*(1+i)n

=1000*(1+7%)^3.5

=1267.19

Therefore, the total value after five years will be $1267.19.

Learn more about simple interest here ;

brainly.com/question/25845758

#SPJ4

4 0
1 year ago
Each day you have $5 for lunch. Today, you decided to save $2
prisoha [69]

Each day you have $5 for lunch. Today, you decided to save $2  and buy the chicken salad tomorrow for $6.50-<u>In this case the money is being used </u>

<u>to save and store the purchasing power</u>

Explanation:

The term money can be defined as a thing that serves as

  • A medium of exchange which is usually financial in nature.
  • It is used by the borrower to repay back to the lender-used to repay the debt.
  • It is used as an unit of accounting to measure your income and expenditure.
  • It is used to store the value of money -in other words used to save  the  purchasing power of an individual

Thus we can say that ,

Each day you have $5 for lunch. Today, you decided to save $2  and buy the chicken salad tomorrow for $6.50-<u>In this case the money is being used </u>

<u>to save and store the purchasing power</u>

8 0
2 years ago
Gavin's position at Pharma-Tech involves purchasing complex manufacturing components, making decisions based on technical data,
Diano4ka-milaya [45]

Answer:

yo no hablo takataka

Explanation:

taktaltakatakatalatal

7 0
2 years ago
Suppose real GDP is forecasted to grow by 2.78 %, the velocity of money has been stable, and the Fed announces an inflation targ
Vadim26 [7]

Answer: 6.48%

Explanation:

This can be solved using the Quantity theory of money;

MV = PY

When dealing with changes, formula changes to;

% change in Money Supply + %change in velocity = %change in price + %change in real GDP

Velocity has been stable so will be zero.

change in money supply = 3.70% + 2.78%

= 6.48%

6 0
2 years ago
A is the thing that an organization does best--something that draws customers to the company, is difficult to imitate, and opens
Ugo [173]

<u>Answer: </u>A is core competence

<u>Explanation:</u>

Core competence is the common term that is used by an organisation to define its multiple resources and skills that are not similar to any one else in the market. Core competence is also the strategic advantage that a business possess in the market.

The strength of the organisation helps it attract many customers and tap all the opportunities in the market at the right time to achieve success. The core competence of the organisation cannot be easily identified or imitated by the competitors in the market.

3 0
3 years ago
Other questions:
  • A store and a bank would both charge fees for?
    5·1 answer
  • In an emergency situation, why is a drug most commonly delivered via injection versus an oral route?
    14·1 answer
  • Unified Airlines is being sued by Northeast Airlines for $5,000,000. At the end of the year, Unified feels it is probable that i
    7·1 answer
  • Eliza took her car to her regular mechanic, who had a private business. The mechanic often advertised on billboards, writing "Re
    13·1 answer
  • Mike has a linear production possibilities frontier that shows maximum production of trucks or computers of 10 million each. Deb
    6·1 answer
  • No Edges Left Behind Enterprises has book income of $1,200,000 which consist of income tax expense of $380,000, municipal bond i
    6·1 answer
  • Southeast Airlines had pretax earnings of $30 million, including a gain on disposal of a discontinued operation of $5 million. T
    5·1 answer
  • Johnny is a sophomore in college and has a 1.5 cumulative grade point average (GPA). Johnny's cumulative GPA will fall even furt
    5·1 answer
  • David wants to open a new gymnasium with state-of-the-art equipment and qualified trainers. However, he can only afford either o
    6·1 answer
  • Azzura is comparing different cars and believes that the sedan has a better mix of benefits in relation to price than the sports
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!