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Makovka662 [10]
2 years ago
15

Aggies Candle Factory has recently been awarded a new contract with a large retailor in Doylestown. Demand for the candles is 25

,0000 which a larger order than the company has ever handled before. They have called a business strategy meeting to ensure success of this project.; the Operations Manager has presented two different manufacturing options for consideration by the board:
Option A is highly automated with fixed costs of $25,000 and variable costs of $.1/candle.
Option B uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle.
Which option should the board select and why?
Business
1 answer:
Sergio039 [100]2 years ago
6 0

Answer: Option A

Explanation:

From the question, the demand given is 250,000

For Option A,

Fixed cost = $25000

Variable cost = $0.1 per candle

Total cost = Fixed cost + Variable cost

Total cost = $25000 + ($0.1 × 250,000)

= $25,000 + $25,000

= $50,000

For Option B,

Fixed cost = $10000,

Variable cost = $0.5 per candle

Total cost = Fixed cost + Variable cost

Total cost = $10000 + ($0.5 × 250,000)

= $10,000 + $125,000

= $135,000

Therefore, the board should select option A as the total cost is cheaper than option B.

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Answer:

» Subscription clause [ In the momerandum, it shows the amount of subscribers and their satus of subscription ]

» Objects or objective clause [ It outlines the workouts planned by the body or company ]

» Liability clause [ explains the liability of any company member ]

» Capitability clause [ This outlines the peak of capital a particular company can reach, it is some times called optimum or nominal capital ]

» Domicile clause [ It shows the location of the registered office of the body or company ]

» Name or status clause [ It specifies the name of the particular organization or body or company ].

Explanation:

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7 0
2 years ago
Sheridan Company prepared a 2019 budget for 150000 units of product. Actual production in 2019 was 175000 units. To be most usef
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Answer:

The actual results for 175,000 units with a new budget for 175,000 units.

Explanation:

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7 0
3 years ago
ABC Inc. has a dividend yield equal to 3 percent and is expected to grow at a 7 percent rate for the next seven years. What is A
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Answer:

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Explanation:

Data provided in the question:

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8 0
3 years ago
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Answer:

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Explanation:

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3 years ago
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I think the answer is a. I'm not 100 sure though.
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