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VMariaS [17]
3 years ago
8

Anika plans to purchase a Janome embroidery machine. The retail price for the Janome 12 model is $10,000 plus $500 for lifetime

maintenance and $1,500 per year (for five years) in operating expenses. The Janome 15 model retails for $12,000 and has the same lifetime maintenance fee. However, the Janome 15 model increases productivity by $500 annually and reduces operating expenses by $500 per year for five years. Assuming a five-year horizon, what is the economic savings (customer inducement) for purchasing the Janome 15 model?
Business
1 answer:
Fed [463]3 years ago
7 0

Answer:

The economic savings for purchasing the Janome 15 model = $3000

Explanation:

<u><em>Step 1: Calculate Total cost of purchasing Janome 12 model</em></u>

Retail cost = 10000

Lifetime maintenance = 500

Operating expenses = 1500 × 5 = 7500

               Total cost = 18000

<u><em>Step 2: Calculate total cost and benefit of Janome 15</em></u>

Retail cost = 12000

Lifetime maintenance = 500

Operating expenses = 1500 × 5 = 7500

                total cost = 20,000

Calculate benefits of Janome 15

increase in  productivity = 500 × 5 = 2500

reduction in operating expenses = 500 × 5 = 2500

                                total benefit = 5000

<u><em>Step 3: Calculate net cost of Janome 15 </em></u>

       net cost = total cost - total benefit

                      = 20,000 - 5000

                      = 15000

<u><em>Step 4: Calculate net benefit of buying Janome 15 </em></u>

            18000 - 15000 = 3000

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tatuchka [14]

Answer:

Option c) cannot be known with perfect certainty and, although not known with perfect certainty, do allow the advisor to create more suitable portfolios for the client.

Explanation:

The indifference curves notably cannot be calculated on a precise point but the theory does allow for the invention or creation of more suitable portfolios for investors that has dissimilar levels of risk tolerance.

An Indifference curve is commonly known as a line. The line depicts or shows combinations of goods among which a consumer is indifferent. It shows also the combinations of goods that can be are affordable. In the curve,consumer tend to not like or desire one combination of goods to another combination of goods that is shown on a curve/line.

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3 years ago
There are very few, if any, good substitutes for motor oil. therefore, the
Alina [70]
<span>the demand for motor oil would tend to be price inelastic.</span>
6 0
3 years ago
A 60,000 square meter rectangular yard is to be enclosed on three sides by wood fencing that costs $25.00 per meter and on the f
raketka [301]

Answer:

C'(y) = 50 -\frac{3900000}{y^2}=0

And we can solve for y and we got:

y = \sqrt{\frac{3900000}{50}}= 279.285

And using condition (1) we can solve for x and we got:

x= \frac{60000}{279.285}= 214.834

So then the minimum cost for this case would be:

C = 50*279.285 + 65*214.834 = 27928.49

Explanation:

For this case the graph attached illustrate the problem for this case

We know that the total area is 60000, so then we have:

xy = 60000

If we solve for x we got:

x = \frac{60000}{y}  (1)

Now we can define the cost function like this:

C = 2*(25)*y + 25 x +40 x

C(x,y) = 50 y + 65 x

We can use the condition (1) and if we replace in the cost function we have:

C(y) = 50 y + 65(\frac{60000}{y})

Since we need to minimize the cost, we can derivate the function in terms of y and we got:

C'(y) = 50 -\frac{3900000}{y^2}=0

And we can solve for y and we got:

y = \sqrt{\frac{3900000}{50}}= 279.285

And using condition (1) we can solve for x and we got:

x= \frac{60000}{279.285}= 214.834

So then the minimum cost for this case would be:

C = 50*279.285 + 65*214.834 = 27928.49

7 0
3 years ago
8.Kline and Salomon form the KS Partnership as 50/50 partners. Kline contributes equipment that has a fair market value of $60,0
mojhsa [17]

Answer: $40,000

Explanation:

Kline brings in equipment that is worth $60,000 but has a basis of $45,000.

The equipment however is subject to a loan of $10,000.

This loan will have to be deducted from the basis. The partnership however is assuming the loan and Kline is only 50% liable in the partnership so Kline's basis will only be affected by half of the loan.

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5 0
3 years ago
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nydimaria [60]

Answer:

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The computation of the estimated ending inventory is shown below:

We know that

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So, cost of goods sold would be

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Now the ending inventory would be

$70,000 = $18,000 + $72,000 - ending inventory

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So, the ending inventory would be

= $90,000 - $70,000

= $20,000

5 0
2 years ago
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