Answer: The cost of the previous repairs.
Explanation:
Answer:
Target sales revenue = $7,830,000
Explanation:
given data
target price = $270
annual target sales volume = 29,000
target operating income = 40%
to find out
Target sales revenue
solution
we will get here Target sales revenue that is express as
Target sales revenue = target price × annual target sales volume .................1
put here value we get
Target sales revenue = $270 × 29000
Target sales revenue = $7,830,000
Answer & Explanation: When planning a procurement, it is useful to at least conduct a make or buy analysis which aids in determining the most cost effective approach, to consult and liaise with in-house experts in the departments of procurement, human resource, and legal, and also to insure the sponsor of the project signs off on the procurement plan. The goal of procurement planning is to increase the transparency and predictability of the procurement process while also deciding on what to buy, when and from what source.
Answer:
a) attached below
b) P( profit ) = TR(q) - TC(q)
c) attached below
d) -$5000 ( loss )
Explanation:
Given data:
Fixed Cost = $10,000
Material cost per unit = $0.15
Labor cost per unit = $0.10
Revenue per unit = $0.65
<u>a) Influence diagram to calculate profit </u>
attached below
<u>b) derive a mathematical model for calculating profit.</u>
VC = variable cost per unit , LC = per unit labor cost , MC = per unit marginal cost, TC = Total cost of manufacturing , FC = Fixed cost, q = quantity, TR = Total revenue, R = revenue per unit
VC = LC + MC
TC (q) = FC + ( VC * q )
TR (q) = R * q
P( profit ) = TR(q) - TC(q) ------------ ( 1 )
c) attached below
<u>d) If Cox Electrics makes 12,000 units of the new product </u>
The resulting profit = -$5000
q = 12
P = TR ( q ) - TC ( q )
= ( R * q ) - ( Fc + ( Vc * q ) )
= ( 0.65 * 12000 ) - ( 10,000 + ( 0.25 * 12000 )
= -$5200