45,000 worth of goods were invoiced by A. Bose of Kolkata to C. Dutta of Chandigarh at

we are evaluating a project that costs $848,000, has an eight-year life, and has no salvage value. assume that depreciation is s

alukav5142 [94]

A project's susceptibility to undesirable fluctuations in the value of the underlying factors, such as the sales price, sales units, its indirect cost, and other variables, is assessed using sensitivity analysis.

<h3>Sensitivity analysis: What is it?</h3>

According to a specific set of assumptions, sensitivity analysis evaluates how various values of an exogenous variables impact a specific dependent variable. In other words, analyses look at how different types of ambiguity in a mathematical formula affect the overall level of uncertainty in the model.

<h3>Briefing:</h3>

Project has an eight-year lifespan, costs $848,000, and has no residual value. Over the course of the project's life, depreciation decreases linearly to zero.

Depreciation = $848,000 / 8 = $106,000

Contribution margin per unit = selling price - variable cost per unit

= 40 - 20 = $20 per unit

Accounting break-even point = (Fixed costs + Depreciation) / Contribution per unit

= (625,000 + 106,000) / 20

= 36,550 units

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8 0

1 year ago

XYZ Ltd produces a product for which the annual demand is 10,000 units. Production averages 100 units per day, while demand is 4

irina [24]

Answer: Batch size to be used =Economic batch size of 2,236 units

Explanation:

From the question, we have that

Annual demand (D) = 10,000 units

Setup cost (S) = $200

Holding cost (H) = $2 per unit per year

Daily production (p) = 100 units per day

Daily Demand (d) = 40 units per day

Therefore Economic batch size, Q will be calculated as

Q = $\sqrt{2 x D x S / H x ( 1-d/p }$

Q= $\sqrt{2 x 10,000 x 200 / 2 x ( 40/100)}$

Q= $\sqrt{4,000,000/0.8 }$

Q= $\sqrt{5,000,000}$

Q=2,236.067 rounded up to 2,236

Economic batch size =2,236 units

3 0

3 years ago

The CEO of David's firm just came back from a business seminar, and he called David into his office. "I just found out about the

MatroZZZ [7]

Answer:

A. the product life cycle is not a useful concept. it is often impossible to identify with precision where a product is in the product life cycle.

Explanation:

The product life cycle is broken into four stages: introduction, growth, maturity, and decline. This concept is used by management and by marketing professionals as a factor in deciding when it is appropriate to increase advertising, reduce prices, expand to new markets, or redesign packaging

6 0

3 years ago

Don’t be afraid to ask for a _______-_______ deal

vichka [17]

Win-Win deal, effective negotioation considers what is best for all parties.

8 0

3 years ago

Read 2 more answers

Identify the appropriate inventory model to obtain the optimal lot size for the given problem description: A small grocery store

Ad libitum [116K]

Answer:

d. ROP

Explanation

The economic order quantity is the minimum amount of inventory that a seller must keep to demand and lower the holding cost. The reorder point is the inventory management system in which a certain level of inventory is set as a trigger for reordering the stock. The cost of excess stock for the grocery store is $1 ($1.50 - $0.50). The cost of under cutting the inventory is $1.70 ($3.20 - $1.50). The cost of under stocking is more than cost of excess inventory. The best model which will suit the grocery store is ROP.

8 0

3 years ago