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kvasek [131]
3 years ago
6

Your firm can make a product in-house for $11.50 per unit using new production equipment which would cost $30,000. Your firm cou

ld alternatively purchase the same item for $16.25 per unit using a legal contract which will cost $2000 to create and negotiate. What is the approximate break-even point
Business
1 answer:
Nikolay [14]3 years ago
7 0

Answer:

The indifference point is 5,895 units

Explanation:

Giving the following information:

In-house:

Unitary variable cost= $11.5

Fixed cost= 30,000

Buy:

Unitary variable cost= $16.25

Fixed cost= 2,000

<u>To calculate the indifference point, we need to establish the total cost formulas for each option:</u>

In-house:

Total cost= 30,000 + 11.5x

x= number of units

Buy:

Total cost= 2,000 + 16.25x

x= number of untis

<u>Now, we equal both formulas and isolate x:</u>

30,000 + 11.5x = 2,000 + 16.25x

28,000 = 4.75x

5,895 = x

The indifference point is 5,895 units

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A 60-year-old man develops lung cancer, and sues the manufacturer of an asbestos-containing material. The man worked in construc
Artyom0805 [142]

Answer:

Weak because of proximate cause is difficult to prove in absence of other similarly affected individuals

Explanation:

Since in the question it is mentioned that the 60 year old man have a lung cancer so he sues the asbestos manufacturer also he trust that it is unsafe as her friend who use the alternative material has not have a lung cancer so here the case would be weak as of proximate cause as it is difficult for proving it

Therefore the same is to be considered

8 0
3 years ago
Cultural tourism or World Heritage sites are often designated by:
Mrrafil [7]

Answer:

The correct answer is letter "B": United Nations Educational, Scientific, and Cultural Organization.

Explanation:

The United Nations Educational, Scientific, and Cultural Organization (UNESCO) is a specialized organism of the United Nations (UN) System. UNESCO works towards creating proper conditions for communication between civilizations, cultures, and peoples, funded in respect of human values. At the same time, contributes to peace conservation and worldwide security through the promotion of cooperation between countries through science, culture, communication, and information.

The UNESCO World Heritage Committee is the board in charge of designing cultural and natural World Heritage sites such as the <em>Taj Mahal </em>(India), the <em>Historic Sanctuary of Machu Picchu</em> (Peru) or the <em>Serengeti National Park</em> (Tanzania).

5 0
3 years ago
What would marginal analysis put an emphasis on?
DIA [1.3K]
The answer to this question is: <span>additional costs and benefits.
</span><span> is an examination of the additional benefits that received from doing an activity compared to the cost that must be incurred in order to do that activity.
</span>This analysis will help companies to determine what operations that they should maintain in the future in order to keep the profit margin of the company.
5 0
3 years ago
The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variable costs will be $50,000, and rental costs for t
elena55 [62]

Answer and Explanation:

Revenue                              $160,000

Rental Costs                      $30,000

Variable Costs                      $50,000

Depreciation                      $10,000

Profit before tax              $70,000

Tax(35%)                              $24,500

Net Income                      $45,500

Operating cash flow

a) Dollars in minus dollars out

Revenue ? rental costs ? variable costs ? taxes = $160000 -$30000-$50000-$24,500 = $55,500

b) Adjusted accounting profits

Operating cash flow = Net income + depreciation = $45,500 + $10,000 = $55,500

c) Add back depreciation tax shield

Operating cash flow = [(Revenue ? rental costs ? variable costs) × (1 ? 0.35)] + (depreciation × 0.35)]

= ($160,000-$30000-$50,000)*0.65 + $10,000*0.35 = $55,500

Yes, the above approaches result in the same value for cash flow

4 0
3 years ago
Justin, a real estate salesperson, would like to offer his colleague a referral fee for referring him a new client. before offer
MrMuchimi
Justin<span> obtained informed consent from the client in order to follow the full disclosure policy. In this policy, referral fee can only be given with the informed consent of the client (this is the party being referred by the </span>referrer<span>). The informed consent should be in writing in order to avoid complications in the future.</span>
8 0
3 years ago
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