You work for REV and check your work email on your mobile phone. You have decided to resign

Peggy Lane Corp., a producer of machine tools, wants to move to a larger site. Two alternative locations have been identified

Alborosie

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Two alternative locations have been identified: Bonham and McKinney. Bonham would have fixed costs of $ 800,000 per year and variable costs of $ 13,000 per standard unit produced. McKinney would have annual fixed costs of $ 920,000 and variable costs of $ 12,000 per standard unit. The finished items sell for $ 29,000 each.

Costs:

Bonham= 800,000 + 13,000*x

McKinney= 920,000 + 12,000*x

1) 800,000 + 13,000*x=920,000 + 12,000*x

1,000x=120,00

x=120 units

2) Because Bonham has a higher variable cost, from the indifference point and below, it generates a higher profit. From 120 units and more it generates less profit than McKinney.

3) Break-even point= fixed costs/ contribution margin

Bonham:

Break-even point= 800,000/(29,000 - 12,000)= 47 units

McKinney:

Break-even point= 920,000/(29,000-13,000)= 58 units

6 0

2 years ago

The manager of a publishing company plans to give a $23,000 bonus to the top 12 percent, $10,000 to the next 25 percent, and $6,

I am Lyosha [343]

Answer:

total expected bonus = $1262800

Explanation:

given data

bonus = $23,000

Probability = 12 percent

bonus = $10,000

Probability = 25 percent

bonus = $6,000

Probability = 8 percent

total sales = 220

solution

first we get probability for bonus amount = $0

probability = 1 - ( 12% + 25% + 8 % )

probability = 0.55

so here Expected bonus per employee company will pay is

Expected bonus = $23000 × (0.12) + $10000 × (0.25) + $6000 × (0.08) + $0 (0.55)

Expected bonus = $5740

so total expected bonus is

total expected bonus = $5740 × 220

total expected bonus = $1262800

8 0

2 years ago

Let's say that you choose to buy bread in a grocery store. According to the marginal benefit and marginal cost principle, how ma

snow_lady [41]

Six is your answer because if it cost $2.00 and you have 4 it makes sense

8 0

2 years ago

What are some types of PPE that employer must pay for

WITCHER [35]

Respiratory masks when working in areas with fumes or heavy dust, safety glasses, surgical suite growing and shoe covers, gloves (hospital), these are some.

5 0

3 years ago

A rookie quarterback is negotiating his first nfl contract. his opportunity cost is 10%. he has been offered three possible 4-ye

fomenos

Answer:

He should accept contract 2 because it has a higher present value.

Explanation:

The numbers are missing, so I looked for a similar question:

year 1 2 3 4

Contract 1 $3,000,000 $3,000,000 $3,000,000 $3,000,000

Contract 2 $2,000,000 $3,000,000 $4,000,000 $5,000,000

Contract 3 $7,000,000 $1,000,000 $1,000,000 $1,000,000

As his advisor, which contract would you recommend that he accept?

we need to find the present value of each contract:

Contract 1 = $3,000,000/1.1 + $3,000,000/1.1² + $3,000,000/1.1³ + $3,000,000/1.1⁴ = $2,727,273 + $2,479,339 + $2,253,944 + $2,049,040 = $9,509,596

Contract 2 $2,000,000/1.1 + $3,000,000/1.1² $4,000,000/1.1³ + $5,000,000 /1.1⁴ = $1,818,182 + $2,479,339 + $3,005,259 + $3,415,067 = $10,717,847

Contract 3 $7,000,000/1.1 + $1,000,000/1.1² + $1,000,000/1.1³ + $1,000,000/1.1⁴ = $6,363,636 + $826,446 + $751,315 + $683,013 = $8,624,410

6 0

3 years ago