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3 years ago

Cox Electric makes electronic components and has estimated the following for a new design of one of its products:

Business

1 answer:

vfiekz [6]3 years ago

3 0

Answer:

a) attached below

b) P( profit ) = TR(q) - TC(q)

c) attached below

d) -$5000 ( loss )

Explanation:

Given data:

Fixed Cost = $10,000

Material cost per unit = $0.15

Labor cost per unit = $0.10

Revenue per unit = $0.65

a) Influence diagram to calculate profit

attached below

b) derive a mathematical model for calculating profit.

VC = variable cost per unit , LC = per unit labor cost , MC = per unit marginal cost, TC = Total cost of manufacturing , FC = Fixed cost, q = quantity, TR = Total revenue, R = revenue per unit

VC = LC + MC

TC (q) = FC + ( VC * q )

TR (q) = R * q

P( profit ) = TR(q) - TC(q) ------------ ( 1 )

c) attached below

d) If Cox Electrics makes 12,000 units of the new product

The resulting profit = -$5000

q = 12

P = TR ( q ) - TC ( q )

= ( R * q ) - ( Fc + ( Vc * q ) )

= ( 0.65 * 12000 ) - ( 10,000 + ( 0.25 * 12000 )

= -$5200

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Answer:

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3 years ago

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3 years ago

Suppliers want to sell large quantities of products with a high

SVEN [57.7K]

Answer:

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Explanation:

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3 years ago

Diamond Enterprises is considering a project that will produce cash inflows of $41,650 a year for three years followed by $49,00

Anton [14]

Answer:

-8.42%

Explanation:

The internal rate of return on this project can be computed using IRR function in excel spreadsheet as follows:

=IRR(values)

values represent the cash flows arranged from the earliest(year zero cash outflow of -$219000) to the latest( year 4 cash flow which is $49,000) as shown in the attached

IRR=-8.42%

At IRR , the NPV=0

NPV=-$219000+$41650/(1-8.42%)^1+$41650/(1-8.42%)^2+$41650/(1-8.42%)^3+$49000/(1-8.42%)^4=$0

Download xlsx

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3 years ago