1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Licemer1 [7]
3 years ago
15

You currently purchase a part used in your production process from an outside supplier, and have decided to begin making this pa

rt in-house. You have two equipment options for moving production in-house: special-purpose equipment and general-purpose equipment. Cost information for these two options is as follows:
ALTERNATIVE
Special-Purpose Equipment
General-Purpose Equipment FIXED COST
$200,000 per year
$50,000 per ye ar VARIABLE COST
$15 per unit
$20 per unit
Use Scenario 2.6 to solve this mystery. At an annual requirement of 40,000 units, what does the company save per year by selecting the low-cost option?
a) $40,000
b) $50,000
c) $150,000
d) $300,000
Business
1 answer:
KIM [24]3 years ago
7 0

Answer:

At an annual requirement of 40,000 units, selecting the low-cost option will save the company per year:

b) $50,000

Explanation:

a) Data and Calculations:

ALTERNATIVE                           FIXED COST            VARIABLE COST

Special-Purpose Equipment     $200,000 per year      $15 per unit

General-Purpose Equipment     $50,000 per year     $20 per unit

Total Cost of Production for 40,000 units under the two alternatives:

ALTERNATIVE       FIXED COST    VARIABLE COST         TOTAL  COSTS

Special-Purpose   $200,000      $600,000 ($15*40,000)    $800,000

General-Purpose     $50,000    $800,000 ($20*40,000)   $850,000

b) The difference between the two alternatives in total costs is $50,000 ($850,000 - $800,000) with the low-cost alternative as the Special-Purpose Equipment.

You might be interested in
A stockholder sold her shares and made a profit of $1,403. If that is a profit of 27%, how much were the shares worth when she o
tigry1 [53]

The worth of the shares when the stockholder originally purchased them is $1105.

<h3>What are shares?</h3>

Shares are fractional ownership interests in a corporation. For some businesses, shares are a type of financial instrument that allows for the equitable distribution of any declared residual profits in the form of dividends.

It is assumed that the purchase price of the share is $100. As the stockholder sold her shares for $1,403, making a profit of 27%, it implies that:

  127 = $1,403

∴ 100 = $1,403/127 × 100

        = $1104.72

Therefore, $1104.72 is the original purchase price of the share.

To learn more about share, click here:

brainly.com/question/28392295

#SPJ1

7 0
1 year ago
Assume the world market for oil is competitive and that the marginal cost of producing another barrel of oil is $79.40 and the m
Alona [7]

Answer:

b. Increase by $2.20

Explanation:

Economic Surplus is the total benefit to society from production.

If an additional unit is produced the additional cost will be $79.40 and it will the additional benefit of $81.60.

So the surplus = benefit - cost = $81.60 - $79.40 = $.2.20

They are marginal quantities (change made by additional unit) so everything has been taken into account for the deriving of change to surplus.

3 0
3 years ago
When a customer does not pay an invoice by a certain date, that customer might have to pay an additional _____.
olga55 [171]
You would have to either make them pay another installment.
8 0
3 years ago
Read 2 more answers
According to the consumer decision process, after consumers recognize the need for a product, they then engage in:.
lions [1.4K]

Answer:

An information search.

What is information search?

is a stage in the Consumer Decision Process during which a consumer searches for internal or external information.

4 0
3 years ago
The _____ stage of the product life cycle is the longest stage, where sales peak and profit margins narrow. in this stage new us
nalin [4]

The maturity stage of the product life cycle is the longest stage, where sales peak and profit margins narrow. in this stage, new users or new uses may be added to extend the product life.

Introduction, growth, maturity, and decline are the four stages that make up a product's life cycle. Professionals in management and marketing use product life cycles to assist them to decide on advertising schedules, price points, expanding into new product markets, redesigning packaging, and more.

When sales reach their maturity stage, they start to slow down after a period of strong expansion. At this stage, businesses start lowering their prices in an effort to remain competitive against the escalating competition. The product life cycle's mature stage lasts the longest. At this time, the company has reached the peak of the demand cycle, sales growth is starting to slow down, and advertising tactics aren't doing anything to help.

To know more about product life cycle refer to:  brainly.com/question/17485582

#SPJ4

3 0
2 years ago
Other questions:
  • A favorable cost variance occurs when actual costs are more than standard costs standard costs are more than actual costs standa
    10·1 answer
  • A study comparing perceptions of punctuality in the United States and Brazil found that Brazilian timepieces are less reliable a
    10·1 answer
  • Anyone want to help?
    15·1 answer
  • Straight Arrow unloaded two tankers worth of toxic waste at an important port in the country of Urithmea. A hundred workers work
    13·1 answer
  • A company's normal selling price for its product is $20 per unit. However, due to market competition, the selling price has fall
    10·1 answer
  • Suzanne, Kyle, and Monique have been arguing for days over how they are going to divide up the responsibilities for their group
    9·1 answer
  • If the purchasing manager purchased a greater quantity of raw materials than budgeted, but paid the Standard Price (SP), which v
    6·1 answer
  • Many companies look at a persons social media postings when considering whether to hire them
    9·2 answers
  • Ehler Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During th
    10·1 answer
  • Sherry is trying to increase her daily exercise. She has downloaded an application on her phone that tracks how far and how long
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!