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scoundrel [369]
3 years ago
15

Merowak Missiles has developed its Democratizer Offensive Weapon System (DOWS) for the US military. After sinking $1 billion int

o R&D and design, it spent $0.5 billion building the tools and production facility that are unique to DOWS production. It houses these in standard factory floor space that costs $1 million. Each missile has a marginal cost of $2,000. The Pentagon is thinking of discontinuing the program because the missiles are too expensive. If Merowak were to get an order for 50,000 missiles, what would its breakeven price be?
Business
1 answer:
balu736 [363]3 years ago
4 0

Answer:

$100,000,000

Explanation:

To calculate relevant break even cost point we ignore all the sunk funds and fixed costs that have already been paid.

This includes,

R&D funds of $1 billion

Tools of $0.5 billion

Factory of $1 million

None of these are the relevant or incremental costs and thus to calculate break even for this order, they will be avoided.

The Break even cost = 50,000 * 2000 = $100,000,000

We only account for the cost of producing each additional unit that is the Marginal Cost of $2,000/missile.

Hope that helps.

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A machine can produce 2,500 products per hour. If 37 of those products were defective, what is the defect rate per hour for the
daser333 [38]

The defective rate per hour for a machine is 0.0148 or it can be said that the defective rate per hour for a machine is 1.48%.

<h3>What is the defective unit?</h3>

A unit is considered faulty if it has one or more flaws. The quantity of defective units is typically counted during inspections. Many people prefer to use the word "nonconforming units" to make it clear that just because a unit doesn't satisfy the requirements doesn't mean it is ineligible for use.

Given,

Total Production per hour = 2500

Defective unit per hour = 37

Calculation of Defective units rate per hour = Defective unit per hour divided by the Total Production per hour and multiply by 100.

      Defective Unit rate per hour = 37 x 100/2500  = 1.48%

Thus, the defective unit per hour rate is 1.48% or 0.0148. The quantity of defective units is typically counted during inspections.      

Learn more about Defective Unit here:

brainly.com/question/15698853

#SPJ1

4 0
2 years ago
Provincial Inc. reported the following before-tax income statement items:Operating income $ 600,000Loss on discontinued operatio
-Dominant- [34]

Answer:

Option (A) $180,000

Explanation:

The amount of income tax expense has to be reported by the provincial is shown as  

$600,000 × 30% = $180,000

Income tax benefits of ($100,000 × 30% = $30,000) should be disclosed separately in the discontinued operations section of income statement.

Therefore, the correct answer is option (A) $ 180,000.  

8 0
4 years ago
Your professor hands you a piece of paper with the number 75 on it and tells you this is your current average in the class. Sinc
zzz [600]

Answer:

Your professor hands you a piece of paper with the number 75 on it and tells you this is your current average in the class. Since this is your fourth year as a college student, you know you could work hard to bring that average up to a B by the end of the semester. This is data.

D. data

Explanation:

To understand what data is, consider the explanation below;

1. Data: data is a piece of raw information that can be converted to useful information. They are facts and statistics usually derived from observations and study that once processed and analysed, useful information can be extracted from it. Data can be analysed in different ways depending on the expected results. In the modern age, data is very important since they provided a factual basis for theories. Data can be processed manually or through the use of software applications.

An example of data is the score that the professor gave you which is 75, this score implies a specific grade ranking. This data was useful to you, since you analysed it and came to the conclusion that by working hard you can average this score up to a B by the end of the semester. The process through which you took the data which is 75, analysed it by comparing it to the grading system and coming to a conclusion is an example of data processing.

3 0
3 years ago
Assume you are using the dividend growth model to value stocks. If you expect the inflation rate to increase, you should also ex
dexar [7]

Answer:

A

Explanation:

the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = interest rate

g = growth rate

Interest rate used is usually nominal, thus, it increases with inflation rate

We can see that the interest rate is an inverse function of the value, thus when inflation increases, interest rate increases and price declines

Example

d1 = 5

r = 10%

g = 5%

5/ (0.1 - 0,05) = 100

when interest rate increases to 20% as a result of inflation, value becomes

5 / 0.2 - 0.05 = 33.33

value decreased with increase in inflation

7 0
3 years ago
What is the stock price per share for a stock that has a required return of 16%, an expected dividend $2.7 per share, and a cons
Anit [1.1K]

Answer:

Price of stock = $49.5

Explanation:

<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return. </em>

If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:  

Price of stock=Do (1+g)/(k-g)  

Do - dividend in the following year, K- requited rate of return , g- growth rate  

DATA:

D0- 2.7

g- 10%

K- 16%

Price of stock = ( 2.7×1.1)/(0.16-0.1) = 49.5

Price of stock = $49.5

3 0
3 years ago
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