A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified and the associated costs and revenues have been estimated. Annual fixed costs would be $40,000 for A and $30,000 for B; variable costs per unit would be $10 for A and $12 for B; and revenue per unit would be $15 for A and $16 for B.
a) Determine each alternative’s break-even point in units.
b) At what volume of output would the two alternatives yield the same profit?
c) If expected annual demand is 12,000 units, which alternative would yield the higher profit?
Answers
Answer:
Results are below.
Explanation:
Giving the following information:
Alternative A:
Fixed costs= $40,000
Variable cost per unti= $10
Revenue per unit= $15
Alternative B:
Fixed costs= $30,000
Variable cost per unti= $12
Revenue per unit= $16
First, we need to calculate the break-even point in units using the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Alternative A= 40,000 / (15 - 10)
Alternative A= 8,000
Alternative B= 30,000 / (16 - 12)
Alternative B= 7,500
To calculate the indifference point in units, we need to determine the net income equations:
Alternativa A= 5*x - 40,000
Alternative B= 4*x - 30,000
x= number of units
We equal both formulas and isolate x:
5x - 40,000 = 4x - 30,000
x = 10,000
The indifference point is 10,000 units.
Finally, the higher income for 12,000 units:
Alternativa A= 5*12,000 - 40,000= $20,000
Alternative B= 4*12,000 - 30,000= $18,000
For 12,000 units the best option is alternative A.
Related Questions
12/25
If you pay off only the amount owed on your credit card each month, but
don't pay it off completely, what's that called?
A
B
с
Making your minimum payment.
Paying your balance.
Making your interest-avoidance payment.
Paying your dues.
Answers
Answer:
A
Explanation:
This assignment consist of you selecting a topic from the book and finding two articles to support your thoughts and ideas surrounding that article/topicFor example, the book might talk about different management styles, to which you might find some articles that talk about how management styles have had to evolve post the pandemicThe paper is only two pages double spaced, and in no particular format other than citing correctly any referencesYou don't need a cover sheet, and should be double spaced. You can submit more than two pages but should stick pretty close to the minimum requiredRemember there should be an introduction, a body and then a summary/conclusion
BUSINESS CLASS!!
Answers
The Topic of my own choosing is: Evolution of Management Styles, a Post-Pandemic study.
What is the Management Styles?The COVID-19 pandemic has drastically impacted businesses, necessitating adaptations and adjustments for survival. Management styles have especially undergone significant transformation.
This paper so discusses the evolution of post-pandemic management styles and organizational responses to the global health crisis. It also explores traditional pre-pandemic management styles such as hierarchical and top-down approaches.
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Help Please with questions
Answers
The actual cost rate per 1,000 square feet maintained for Residential region is $1.06, and for Commercial region is $1.06.
How to calculate the cost rateCalculation of total maintenance cost for Evergreen:
Total Fixed Costs (S) = $785,429
Variable Cost rate = $1.06 per 1,000 square feet maintained
Total square feet maintained in April = 320 million
Total variable cost = $1.06 per 1,000 square feet maintained * 320 million square feet / 1,000 = $339,200
Total maintenance cost for Evergreen = Total Fixed Costs + Total Variable Costs = $785,429 + $339,200 = $1,124,629
Allocation of maintenance cost to each service region:
Total maintenance cost to be allocated = $1,124,629
Since the total square feet maintained is divided equally among the three service regions, each region maintained 320 million / 3 = 106.67 million square feet.
Allocation of maintenance cost to Residential region:
Maintenance cost allocated to Residential region = (106.67 million square feet / 1,000) * $1.06 per 1,000 square feet maintained
= $113,067
Allocation of maintenance cost to Commercial region:
Maintenance cost allocated to Commercial region = (106.67 million square feet / 1,000) * $1.06 per 1,000 square feet maintained
= $113,067
Allocation of maintenance cost to Public Parks region:
Maintenance cost allocated to Public Parks region = (106.67 million square feet / 1,000) * $1.06 per 1,000 square feet maintained
= $113,067
Therefore, the maintenance cost that would be allocated to Residential region is $113,067, to Commercial region is $113,067, and to Public Parks region is $113,067.
Calculation of actual cost rate per 1,000 square feet maintained for each region:
Since the actual monthly costs of the maintenance department are equal to the budgeted costs for 320 million square feet, the actual cost rate per 1,000 square feet maintained would be the same as the budgeted variable cost rate, which is $1.06 per 1,000 square feet maintained for all three regions. Therefore, the actual cost rate per 1,000 square feet maintained for Residential region is $1.06, and for Commercial region is $1.06.
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The remnants of a supernova will form a tightly packed ball called a ______.
Answers
Answer:
hydrostatic equilibrium
Explanation:
don't know if it's right but if it is, give me brainly lol
Amy is buying a new laptop. She is interested in what her peers have to say about laptops. Amy reached out to her friends because the use of a laptop is
Answers
Amy is buying a new laptop. She is interested in what her peers have to say about laptops. Amy reached out to her friends because the use of a laptop is situation decision to make. Thus the correct option is Last.
What is the laptop?A laptop is referred to as an electronic device that is the latest technology having similar features to a computer. The laptop is easy to carry and can be used in traveling or in motion due to its portability.
In order to avoid using a strategy, situational decision-making entails making sensible, practical decisions or choices while taking into account the unique scenario or context.
In order to make a decision about buying a new laptop Amy is looking for feedback from her peers and friends about the laptops to make the best possible use of a laptop for work purposes based on the evaluation of their responses.
Therefore, the last option is appropriate.
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Which situation best illustrates the process of capital formation?
A. An engineer tries to limit her spending during the week.
B. A factory worker takes out a high-interest loan to buy a new home.
C. A farmer increases his profits by growing a variety of new crops.
D. An artist buys bonds that will increase in value over time.
Answers
Answer :D. An artist buys bonds that will increase in value over time.
Explanation:A.P.E.X
purchased goods of rs 40000 journal entries
Answers
The journal entry for Rs. 40, 000 purchases would include a debit to purchases and credit to cash or accounts payable.
How to enter the journal ?The Purchases account is debited because the business has acquired goods, which is an asset. The Accounts Payable account is credited because the business owes money to the supplier for the goods.
Date Account title Debit Credit
XX -XXXX Purchases Rs. 40, 000
Accounts payable Rs. 40, 000
This journal entry will increase the balance of the Purchases account and the Accounts Payable account. The Purchases account will be used to track the cost of goods sold, and the Accounts Payable account will be used to track the amount of money owed to suppliers.
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If the equilibrium price for tickets to a a Lady Antebellum concert is $100 each and they sell them for $85,
Answers
Answer: you save $15
Explanation: 100-85 is 15 and the tickets are selling for $85 instead of original price
Explanation:
The cost of an items is 200. what will be the cost of 50 such. write a simple program
Which is an advantage of functional organizational structure?
A.
better project focus
B.
faster response in decision making
C.
team members develop strong project loyalty and commitment with one reporting manager
D.
clear line of authority for each division in the organization
Answers
Answer:
its c
Explanation:
i got it right
Assessment 1. Pick and Analyze!
*
Direction: Below are relevance of entrepreneurship and entrepreneurs in economic development and society. Pick at least two (2) and explain according to your own idea or perception. You may explain it by giving a scenario or an example.
Answers
To achieve social and economic growth, entrepreneurial activity must be encouraged, driven, and compensated to the fullest extent possible.
Explain the impact of entrepreneurship on social and economic growth."Entrepreneurial activities are essential to the development of society and the economy for the following reasons:
Entrepreneurs are those that seek for innovation. They are constantly working to become better versions of themselves and support others in their endeavors.They try to assist the poor by donating some of the money they acquired from their profitable endeavor after realizing the positive social impact of their work.In addition, they support government or nonprofit group efforts.One of the main sources of money for the government is the taxes and GST that are paid by both small and large business owners.The taxes and GST that are paid by owners of small and large businesses serve as one of the primary sources of funding for the government.They have a big impact on the increase in demand for goods and services since they are always surpassing creativity and reaping huge profits.Learn more about Entrepreneurial activities: https://brainly.com/question/4311021
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25 points and brianly
Which sentence demonstrates the use of secondary market research technique?
Answers
Answer:
Sentence 3
Explanation:
Answer:sentence three
Explanation:
In a recent presentation by the management of Seas Inc., the presenters conducted a discussion with a pictorial chart on the cumulative units of production of the company and its correlation with the cost per unit of the product. Which of the following charts did the presenters of Seas discuss?
Question 9 options:
The learning curve
The experience curve
The scale curve
The value curve
Answers
The poor utility of media research for enhancing education has been the subject of numerous gloomy analyses over the last 10 years.
What does "consumption chain" mean in entrepreneurship?The consumption chain refers to this connection life cycle. A business might find possibilities to position and sell its products in ways that neither it nor its rivals would have anticipated by thinking imaginatively about the full experience a consumer has with a product or service.
What kinds of things serve as points of differentiation?Since they put their customers and employees first, some grocery stores, for instance, have a reputation for being terrific places to work and shop. Customers are aware that even though these stores' products are ubiquitous, doing business with them benefits the community, producers, and workers. They take a business-oriented attitude.
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The terms Entrepreneur and Manager is used interchangeable and describes a person that which is a correct answer
a) Manages a small business
b) That starts up a small business
c) That starts up and manages a small business
d) All above statements are incorrect
Answers
The correct answer is d) All above statements are incorrect.
While an entrepreneur and a manager share some similarities in their roles within a business, they are not interchangeable terms. Each term represents a distinct role and set of responsibilities.
An entrepreneur is an individual who identifies opportunities, takes risks, and initiates the process of starting a new business venture. They are typically involved in the creation and development of the business idea, gathering resources, and making strategic decisions to bring the business concept to fruition.
On the other hand, a manager is responsible for overseeing and directing the day-to-day operations of a business. They focus on organizing resources, implementing plans, coordinating activities, and managing employees to achieve the organization's goals. Managers are typically appointed or hired to handle specific functions within an existing business.
Therefore, while an entrepreneur may start a small business, and a manager may be responsible for managing a small business, the terms "entrepreneur" and "manager" represent different roles and responsibilities within the business context.
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12.) A hypothetical condition would be employed in an assignment to
Answers
Answer:
n an appraisal assignment, a hypothetical condition is used when a property is appraised under a condition that is contrary to what is known by the appraiser to exist on the effective date of the assignment results.
Explanation:
businesses can compensate employees for work they produce when being paid by
Answers
Explanation:
Structured incentive pay is set by specific sales or production goals and paid to employees at a percentage or flat rate. For example, you set a goal for $50,000 in sales for the fiscal year. If you reach that goal, you give each employee a bonus equaling 2% of their annual salary
Which of the following might cause the inflation rate to spike up sharply?
Plentiful rainfall and moderate temperatures result in good harvests of wheat and soybeans.
Prices on world oil markets rise steeply due to war in the Middle East. O
The purchasing power of the average consumer decreases due to a sluggish economy.
The items in the CPI market basket change to account for changing consumer buying habits.
Answers
Answer: Prices on world oil markets rise steeply due to war in the Middle East
Explanation:
The inflation rate spiked sharply because prices in world oil markets rise steeply due to the war in the Middle East. Option (b) is correct.
What do you mean by Inflation?The rate of increase in prices over a given period of time is known as inflation.
The cost of making items would rise as a result of an increase in crude oil prices. Inflation would eventually arise from this price increase being passed on to consumers.
Inflation in Oil prices are a result of the Russian Federation being cut off from global supply networks as a result of sanctions following Moscow's invasion of Ukraine. Nations now have to pay more for oil when seeking to obtain it from other sources.
Therefore, Option (b) is correct.
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What effect do consumer expectations have on the demand for a good?
A. They increase demand for products that have complementary
goods.
B. They reduce demand for products with a consistent equilibrium
price.
C. They increase demand for products in markets with a small
number of consumers.
D. They reduce demand for products expected to become cheaper in
the future.
Answers
Answer:
Option D is correct
Explanation:
If a buyer expects that the price of a good will decrease in the future, they stop or decrease the purchasing of that good today. A a result, the demand for that good today decreases. On the other hand, if a buyer expects that the price of the good will increase in the future, the demand for the good increases.
Option D. is correct.
Answer:
D. They reduce demand for products expected to become cheaper in
the future.
Explanation:
Which of the following best explains why a country might specialize in the production of a good?
O Consumers in the country only demand a single good.
O The country believes it is generally better to do one thing really well than multiple things.
The country cannot produce other goods and services.
Specialization allows the country to exchange for more of other goods than it could produce.
Answers
The best explanation for why a country might specialize in the production of a good is specialization allows the country to exchange for more of other goods than it could produce (option D).
Specialization in the production of a particular good enables a country to take advantage of its available resources, labor, and technology to produce that good more efficiently and at a lower cost compared to other countries. As a result, the country can sell its specialized good to other countries in exchange for other goods that it needs but cannot efficiently produce on its own.
For example, if a country specializes in the production of coffee, it can produce coffee beans at a lower cost and higher quality than other countries due to its favorable climate and available resources. The country can then trade its coffee for other goods that it cannot produce as efficiently, such as electronics or machinery.
Specialization also leads to increased productivity and efficiency, as workers can focus on producing a specific good and become highly skilled in that area. This can lead to technological advancements and innovations, which can further improve production efficiency and competitiveness in the global market.
In conclusion, specialization allows a country to leverage its strengths in the production of a specific good, trade it for other goods it needs, and increase productivity and competitiveness.
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Select the correct answer.
How can a business save on premium paid to insurance companies while also mitigating risk effectively?
A.
by covering all the risks that a business could face
B.
by having a higher deductible
C.
by choosing an unlicensed insurance agent
D.
by making sure no employees take risks in the business
Answers
Answer:
the answer is b
Explanation:
what is the background of the unilever company?
Answers
Answer:
Ueliever somthing i forgot
Explanation:
What are Risk of RSA Retail Savings Bond
Answers
Answer:
The risk of investing in these bonds is also very small as it’s unlikely the South African government won’t pay you back your initial investment or interest payments. You also have the option of reinvesting your interest payments, which will help to grow future interest payments.
Explanation:
EE printing is in the evaluation process for the acquisition of a new computer system. The total depreciable base (cost plus installation) is $180,000.
The new equipment will increase Earnings before depreciation and taxes by $60,000 during years 1 to 3 and $32,000 during years 4 to 6.
EE marginal tax rate is 40% and Cost of Capital is 11%
Calculate the Payback Period
PRESENT YOUR ANSWER ROUNDED TO 2 DECIMAL PLACES
Answers
Answer:
5 {4m f
Explanation:
it exal that
Carroll Corporation has two products, Q and P. During June, the company's net operating income was $19,500, and the common fixed expenses were $43,000. The contribution margin ratio for Product Q was 40%, its sales were $128,000, and its segment margin was $35,000. If the contribution margin for Product P was $33,000, the segment margin for Product P was:
Answers
Answer:
Segment margin of product P-$27,500.00
Explanation:
The total company's segment margin is net income plus common fixed expenses.
Total segment margin=$19,500+$43,000=$62,500.00
Total segment margin can be determined as the segment margin of products Q and P
Segment margin of product Q is $35,000
segment margin of product P=$62,500-$35,000=$ 27,500.00
Hence ,the segment margin of product P is $ 27,500.00
defining the problem gathering information evaluating information selecting the best option taking action Part A You are trying to decide what you want to major in during your college years. How should you go about making this decision?
Answers
When trying to decide the major you want in your college years, you should go about the decision by selecting the best option.
Deciding your college major?To decide your college major, you need to apply the steps in the Decision - making process which are:
defining the problem gathering information evaluating information selecting the best option taking actionThe first step would be to define the problem which is that you need to pick a college major that fit into your plans for life and that you would actually be interested in.
Then, you need to gather information of the various majors available. This is an exhausting step because you'll have to talk to your family and friends, attend college preparation fairs, talk to your guidance counselor, do research online etc.
Once you find out different majors, you then need to evaluate the information that you have to see how they fit into your plans. From this evaluation, you then select the best major for you or at least have a shortlist of 3 courses. Then take action by applying to colleges with these majors in mind.
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Money Bank has $500 million dollars in deposits and has 12 percent reserve ratio, how much can Money Bank lend
Answers
Answer:
Money Bank can lend up to $4,167 million.
Explanation:
a) Data and Calculations:
Total deposits = $500 million
Reserve ratio = 12%
Money created by Money Bank = $500/12% = $4,166,666,667
b) The total amount of money which Money Bank can create and lend is dependent on its customers' deposits and the reserve ratio. This amount can be calculated by dividing the total deposits by the reserve ratio. This implies that the less the reserve ratio, the more money Money Bank can create and lend out to customers.
FRY-9C, FRY-14M, FRY-14Q, FRY-2052a, FP&A, CRR
What are these terms exactly mean? How do they work in business? What each term do?
Answers
The terms mentioned above are used in economics and have to do with finance.
What are FRY-9C, FRY-14M, and FRY-14Q?In order to keep an eye on financial institutions in between on-site inspections, the FR Y-9C is the main analytical tool employed. The form, which is the most frequently requested and scrutinized report at the holding company level, contains more schedules than any other report in the FR Y-9 series.
The FR Y-14M report gathers monthly in-depth information on the loan portfolios of bank holding companies (BHCs), savings and loan holding companies (SLHCs), and intermediate holding companies (IHCs). Three loan- and portfolio-level collections, as well as one in-depth address matching collection, make up the report.
On a quarterly basis, the FR Y-14Q compiles comprehensive information on the various asset classes, capital components, and pre-provision net revenue (PPNR) categories of the bank holding companies (BHC), savings and loan holding companies (SLHCs), and intermediate holding companies (IHC).
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In the price range where demand is inelastic, a decrease in price will result in a decrease in total revenue. True or False?
Answers
Explanation: N/A
Imagine that you want to buy a limited edition book for $100, the publisher decides that consumers won't buy the book at a price higher than $100, so only 500 books are printed. If the publisher turns out to be wrong, and consumers demand 10,000 books, the price will rise (as demand increases, so does price). This rise in price should then prompt the publisher to print more books because the higher the price, the higher the quantity supplied. Find another product that you use everyday and for which the market would react the same way
Answers
9514 1404 393
Answer:
gasoline
Explanation:
The price of gasoline rises dramatically when there is a perceived shortage. That price rise, in turn, causes producers to seek out sources of supply that previously had been considered uneconomical.
Answer:
GasolineExplanation:
#CARRYONLEARNING
This chapter is all about trade--imports and exports and the balance of payments.
Answers
Tang worked 52 hours last week. His hourly rate is $7.80. Tang’s gross pay for last week was $
Answers
Answer: $405.6
Explanation:
If Tang earns $7.80 per hour(Hourly rate) and works for 52 hours then his gross pay would be 405.6 dollars because 52*7.80 = 405.6.
all you need to do is multiply the horly rate by the number of hours worked