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Anna11 [10]
3 years ago
12

Four Corners is an IBC company that sells delicious Navajo tacos in the Crossroads Food Court. Part of their success can be attr

ibuted to the freshly fried Indian bread that is used not only for the tacos, but also for dessert items. As demand grows the fry-bread process is becoming a bottleneck. Operations management for the company is looking at two different process options to replace the highly manual process currently being used. Option 1 (medium automation) would cost $175 to implement whereas Option 2 (high automation) would cost $350. With Option 1 the variable cost per fry bread produced would be $0.20. The variable cost for Option 2 would be $0.09 per fry bread. a. At what volume (demand) of fry breads is the cost for the two options the same? (Display your answer to two decimal places.) b. What is the total cost for either option at this break-even volume (answered in the last question)?
Business
1 answer:
fredd [130]3 years ago
8 0

Answer:

For Option 1:

Cost = $175

Variable Cost = $0.20

For Option 2:

Cost = $350

Variable Cost = $0.09

A).

Volume demand would be same at

175 + x × 0.20 = 350 + x × 0.09

175 + 0.20x = 350 + 0.09x

0.20x – 0.09x = 350 – 175

X = 175/0.11

X = $1590.9

B).

Total cost at this break-even volume is  

For option 1:

= $175 +1590.9 × 0.20

= $493.18

For Option 2:

= $350 + 1590.9 × 0.09

= $493.18

 

You might be interested in
__________ makes it possible for Ford to invest $60 million in a Mexico City manufacturing plant to produce smaller cars and lig
Dmitriy789 [7]

Answer:

The North American Free Trade Agreements

Explanation:

The reason is that the free trade agreements eliminates the price escalation which is imposed by the other countries on importing these goods. So as a result the market becomes less attractive to the company because its product are not able to compete in that environment. The FTA helps organizations to use the resources of other countries with which the country has free trade agreements to lower its costs to compete competitors. The vital resource in Mexico is cheap labor cost and America has one of the best technologies in the world.

7 0
4 years ago
ConAgra Foods is a global manufacturer of processed and packaged foods with revenues of $11 billion annually. It recently acquir
mojhsa [17]

Answer:

wholly owned subsidiary

Explanation:

A wholly-owned subsidiary is a form of subsidiary arrangement, between two companies, whereby a company is completely owned or its whole stock is bought by another company often referred to as Parent Company after the arrangement or the agreement of the acquisition.

It is also characterized by having control over its resources and specific mission, also operates independently.

Hence, in this case, the right answer is a wholly owned subsidiary

6 0
3 years ago
Suppose you purchase a​ ten-year bond with 5 % annual coupons.You hold the bond for four years and sell it immediately after rec
Readme [11.4K]

Answer:

$116.78

$110.66  

IRR is 3.03%

Find attached

Explanation:

The cash paid for the investment is the present  value of all cash flows including coupon and face  value promised by the bond discounted using the yield to maturity of 3.03%

=-pv(rate,nper,pmt,fv)

rate is the yield to maturity of 3.03%

nper is the number of annual coupon  payments receivable by bondholders which is 10

pmt is the annual coupon=$100*5%=$5

fv is the face value of $100

=-pv(3.03%,10,5,100)=$116.78  

Price after four years means that there are only six years left to maturity,hence, nper changes to 6

=-pv(3.03%,6,5,100)=$110.66  

Download xlsx
7 0
3 years ago
Marsden Company has three departments occupying the following amount of floor space: Department 1 15,000 sq. ft. Department 2 10
PolarNik [594]

Answer:

the store rent that should be allocated in department 3 is $100000

Explanation:

if we assume that we charge the rent per square feet occupied, then we can say

department rent = charge per square feet* number of square feets

r = k*sf

also if

total rent = rent department 1 + rent department 2  + rent department 3

r total = r1 + r2 + r3 = k*sf1 + k*sf2 + k*sf3 = k*( sf1 + sf2 + sf3)

k= r total / ( sf1 + sf2 + sf3)

replacing values

k = $200000/(15000 sq.ft + 10000 sq.ft +25000 sq.ft ) = $ 4 per sq.ft

thus for department 3

r3 = k* sf3= $ 4 per sq.ft * 25000 sq.ft = $100000

rent department 3 = $100000

8 0
3 years ago
Dividing responsibility among some of the team members is effective delegation
konstantin123 [22]

Answer:true

Explanation:

Because dividing tasks get more accomplished faster

5 0
3 years ago
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