3. Why are customers' buying motives sometimes difficult to determine?

Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components depart

Arlecino [84]

Answer:

Way Cool

1. Overhead Cost per unit for each product line:

Model 145 Model 212

Overhead cost per unit $434.97 $457.59

2. Total cost per unit for each product line:

Model 145 Model 212

Total cost per unit $634.97 $569.59

3. The profit or loss per unit for each model:

Model 145 Model 212

Market price 515.95 303.34

Loss per unit $119.02 $266.25

Explanation:

a) Data and Calculations:

Process Activity Overheads Driver Quantity Components O/H rates

Changeover $ 627,450 Number of batches 890 $705

Machining 379,155 Machine hours 8,050 $47.10

Setups 108,000 Number of setups 60 $1,800

Total $ 1,114,605

Finishing

Welding $ 220,580 Welding hours 4,100 $538

Inspecting 254,200 Number of inspections 820 $310

Rework 47,200 Rework orders 160 $295

Total $ 521,980

Support Purchasing $ 158,600 Purchase orders 488 $325

Providing space 30,900 Number of units 8,400 $3.68

Providing utilities 126,180 Number of units 8,400 $15.02

Total $ 315,680

Additional production information concerning its two product lines follows.

Model 145 Model 212

Units produced 2,800 5,600

Welding hours 800 3,300

Batches 445 445

Number of inspections 510 310

Machine hours 2,750 5,300

Setups 30 30

Rework orders 90 70

Purchase orders 325 163

Model 145 Model 212

Units produced 2,800 5,600

Welding hours $430,400 (800*$538) $1,775,400 (3,300 * $538)

Batches 313,725 (445*$705) 313,725 (445*$705)

Number of inspections 158,100 (510*$310) 96,100 (310*$310)

Machine hours 129,525 (2,750*$47.10) 249,630 (5,300*$47.10)

Setups 54,000 (30*$1,800) 54,000 (30*$1,800)

Rework orders 26,550 (90*$295) 20,650 (70*$295)

Purchase orders 105,625 (325*$325) 52,975 (163*$325)

Total overhead costs $1,217,925 $2,562,480

Units produced 2,800 5,600

Overhead cost per unit $434.97 $457.59

Direct labor and materials 200.00 112.00

Total cost per unit $634.97 $569.59

Market price 515.95 303.34

Loss per unit $119.02 $266.25

4 0

3 years ago

The Pritzker Music Pavilion in downtown Chicago is a technologically sophisticated and uniquely designed performing arts venue t

jonny [76]

Answer:

a. What is the estimated contribution margin per ticket sold for the benefit concert?

contribution margin per ticket = ($15.50 + $2 + $17) - ($6 + $2.55 + $7) = $34.50 - $15.55 = $18.95

b. What are the estimated total fixed costs for the benefit concert?

total fixed costs = $21,000 + $85,000 = $106,000

c. What is the estimated profit from the benefit concert if 10,500 tickets are sold?

estimated profit = (10,500 x $18.95) - $106,000 = $92,975

d. How many tickets must be sold in order for concert profit to be $100,000?

number of tickets sold = ($106,000 + $100,000) / $18.95 = 10,870.71 ≈ 10,871 tickets sold

e. Assuming a tax rate of 31% on profits from the concert, what must dollar ticket sales be in order for after-tax concert profits to be $100,000?

$100,000 / (1 - 31%) = $144,927.54

number of tickets sold = ($106,000 + $144,927.54) / $18.95 = 13,241.56 ≈ 13,241.56 tickets sold

f. Assume that the organizers can negotiate the fixed payment for the pavilion's operating expenses. If the organizers expect to sell 10,500 tickets, how much can they afford to pay and still earn a profit of $100,000 (ignore taxes)?

contribution margin increases to $18.95 + $7 = $25.95

10,500 = ($21,000 + $100,000 + ?) / $25.95

$272,475 = $121,000 + ?

? = $151,475

you can pay up to $151,475 in fixed expenses to the pavilion

5 0

3 years ago

President bill clinton attempted to protect american firms from foreign competition by placing a government tax on japanese auto

lukranit [14]

C. A tariff

Tariffs are taxes imposed on imported foreign goods and are designed to encourage people to buy domestic products

6 0

4 years ago

Read 2 more answers

true or false, Even with interest-rate a bank pays on your account the real rate of return on that negative because of inflation

Ugo [173]

This may be true or false depending on the situation.

Explanation:

If countering in the inflation, banks were giving negative values all the time to their consumers they would not survive in the game.

But this is not to say this is not a practice that has been done to the unsuspecting people who have wanted to invest money.

They are being given policies and rates that after countering inflation are actually in loss for them as they do not grow as much as the money would have devalued by then.

This is however quite rare and is a malpractice.

4 0

3 years ago

Read 2 more answers

Discuss whether or not consumers benefit more from a market economic system or a mixed economic system. *

storchak [24]

Answer:

compared to a mixed economy, a market economy tends to benefit the consumers.

This is mainly because the government intervention and restrictions are minimum in a market economy, compared to a mixed economy in which the government plays a major part as an economic agent and a regulator.

A free market system's main aim is to enhance the competitions and the freedom of choice for the consumers.

However, in the real world scenarios, pure free market systems are difficult to be seen and most of the time, the economies are Mixed economies.

Even in USA's economy 40% of the economy consists of the government agencies and activities.

This is mainly due to the economic malpractices by the producers and corporations.

Explanation:

7 0

3 years ago