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timama [110]
3 years ago
6

A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the applia

nce from a vendor at $11 each or to produce them in-house. Either of two processes could be used for in-house production; Process A would have an annual fixed cost of $200,000 and a variable cost of $7 per unit, and Process B would have an annual fixed cost of $180,000 and a variable cost of $8 per unit. Determine the range of annual volume for which each of the alternatives would be best.
Business
1 answer:
blondinia [14]3 years ago
8 0

Answer:

If the firm is going to need less than 50,000 motors, they should purchase them from the outside vendor.

If the firm is going to use between 50,000 to 59,999 motors, it should use process A.

If the firm expects to use 60,000 or more motors per year, it should use process B.

Explanation:

Process A:

contribution margin per unit = $11 - $7 = $4

break even number of units = $200,000 / $4 = 50,000 units

Process B:

contribution margin per unit = $11 - $8 = $3

break even number of units = $180,000 / $3 = 60,000 units

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Answer:

I don't understand what you wrote

Explanation:

please reply sir

3 0
3 years ago
34. Teller Co. is planning to sell 900 boxes of ceramic tile, with production estimated at 870 boxes during May. Each box of til
kakasveta [241]

Answer:

budgeted  manufacturing overhead=$2871

Explanation:

Direct labour hours= budgeted production × standard hours per unit

                            = 870× 1/4 hour=217.5  hours

Direct labour cost =  217.5 ×    $12 =$2610

Manufacturing overhead = Overhead absorption rate × direct labour cost

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3 0
3 years ago
I want to start a new business. Ideas?
Aleks04 [339]
1.) Watch the news and find out a problem that everyone needs the solution to like a geologist national research business. Or something people don't have a specific catagory for or is in the random stuff cabinet
 
2.) Think about it and see what you can do to make it spectacular. 

3.) Think of a name for it.

4.) Get it pattened (I don't know how to spell it sorry)

5.) Make a card for it and tell people about it. For the child abuse example. (Sprinkle a little dramatic facts  then tell them what you do to help stop that just to get people intrested and wanting to help.)

6.) Then you can take it from there to get more and more people into your business.

To number 5, I forgot what that trick is but it is when you scare someone by something you told them then dis alarming them by telling the good side. You can basically get anyone to do or say yes to anything you want.

And you can use my geologist catagory idea because these days they really need them. Also my mom said that if your in college and you study for the geologist requirments thing ( I don't know what they call them I think coarses)
They pay you even when your not finished college just to work for them and she also stated why else would they randomly add geology in schools now and they make pretty good money!

Sorry for it being so long but I get excited over the smallest thing and I hope I helped you lots!! And Gooood Luck!!!

 
5 0
3 years ago
Wally, Inc. issued 500 shares of $10 par preferred stock at $83 a share. Each share had a warrant attached that allowed the hold
Mars2501 [29]

Answer: credit to Additional Paid -in Capital on Preferred Stock for $28,200

Explanation:

The journal entry will be:

Debit: Cash = $500 × 83 = $41500

Credit: Preferred stock = $5000

Credit: Additional paid in capital on preferred stock = $28200

Credit: Paid in capital - Common stock warrants = $8300

Note that Additional paid in capital on preferred stock was calculated as:

Amount allocated to preferred stock = (64/64+16) × 41500 = 33200

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Additional paid in capital on preferred stock = $28200

7 0
3 years ago
A firm achieves differentiation parity ideally when
Alina [70]
A firm achieves differentiation parity ideally when it sells its products or services at a higher price than its competitors.  

The idea of parity is that a company sells its products at a higher cost than competitors even though the product or service isn't unique. Differentiation is when one companies products compete and are better than another with the same product. 
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3 years ago
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