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MrMuchimi
3 years ago
5

Tom Johnson Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposa

ls. The fixed costs for proposal A are​ $50,000, and for proposal​ B, $70,000. The variable cost for A is​ $12.00, and for​B, $10.00. The revenue generated by each unit is​ $20.00.​a) If the expected volume is​ 8,500 units, _______(proposal A or proposal
b) with a total profit = $______ should be chosen​(enter your response as a whole​ number).
Business
1 answer:
lilavasa [31]3 years ago
7 0

Answer:

For 8,500 units, proposal A provides a higher income ($3,000).

Explanation:

Giving the following information:

Proposal A:

Fixed cost= $50,000

Unitary cost= $12

Proposal B:

Fixed cost= $70,000

Unitary cost= $10

<u>We need to choose the proposal with the higher income if 8,500 units are produced.</u>

Proposal A:

Net income= 8,500*(20 - 12) - 50,000

Net income= $18,000

Proposal B:

Net income= 8,500*(20 - 10) - 70,000

Net income= $15,000

For 8,500 units, proposal A provides a higher income ($3,000).

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Susan, a district manager for a large retail chain, is comparing the goals of her stores with recent sales. She knows that two s
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What should designers gain from a critique that will enable them to improve their work?
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A designer gains a list of actionable items to improve the design from the critique.

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8 0
1 year ago
Stealth bank holds deposits of $600 million. It holds reserves of $30 million and government bonds worth $80 million. The curren
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Answer:

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6 0
3 years ago
Read 2 more answers
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