Based on volume output the best option to cost-effectively manufacture the Samba Sneakers would be to buy New Equipment with fixed cost of $200,000, variable cost of $500 for every 1,000 sneaker. -Buying new equipment has the lowest cost option for a volume over 300 sneakers manufactured. The breakeven points for each option are as follows: BREAKEVEN POINTS Units Dollars Reconditioned vs. New Equipment 300 350000 Reconditioned vs. Outsource 25 75000 New Equipment vs. Outsource 80 240000 However, buying New Equipment has the lowest cost according to the graph for volumes over 300 sneakers. (See Graph) A1. A1a.
Why? Explain your answer. The consumer should pick a combination of goods that gives the consumer the same marginal utility per dollar spent for both good X and Y. This is the point where the budget line is tangent to IC curve ii. At this point, the consumer should consume 20 units of good X and 15 units of good Y. d) At the optimal consumption bundle, what is the Marginal Rate of Substitution?
In year 2 it reports a $40,000 loss. For year 3, it reports taxable income from operations of $100,000 before any loss carryovers. Using the corporate tax rate table, determine how much tax Willow Corp. will pay for year 3. Answer: $4,500. Description (1) Year 3 taxable income $100,000 (2) Year 1 NOL carryforward ($30,000) (3) Year 2 NOL carryforward ($40,000) (4) Taxable income reported 30,000 (1) - (2) -
Sales units Sales Selling price: $250 100,000 400 Selling price: $250(0.1)= $275 137500 Variable cost: $160 variable cost: $160 Fixed cost: 22500 Fixed cost: 22,500(0.1)= 24750 1. Compute the company’s current break-even point in units and dollars? Break even Units: Fixed expense/CMUnit 22500/90 = 250 CM: 250-160= 90 Dollars: Fixed expense/ Cm ratio 22500/.36= $62500 CM Ratio: units 90/ $250 selling price = .36 2. What is the company’s current margin of safety in Units, dollars and percentage? Margin of Safety (DOLLARS) Budgeted – break even = 100,000-62500= 37500 (Percentage) 37.500/100.000= 37.5% (Units) 37500/250= 150 3.Compute the company’s margin of safety in units assuming the proposal is accepted.
| Math 103 Final Project – Parts 1, 2, and 3 | | | Math 103 Instructor: Toni Robertson December 11, 2010 Math 103 Instructor: Toni Robertson December 11, 2010 Part 1: 1a. What is the shortest loan (36 months, 48 months, 60 months or 72 months) that has a monthly payment within your $500 budget that will allow you to buy the $15,000 car? Answer: Through Bank of America, I found a rate of 2.99% for the 36, 48 and 60 month loans. We are able to put down 20% and will need to finance $12,000. The shortest loan period for the $15,000 car that would be under our $500 limit is the 36 month loan at a rate of $348.93 per month.
Record labels pay composers and publishers mechanical royalties. They try to cap mechanical royalty budgets at ten songs payable at 75% of the statutory rate ($.80 per song), which equals $.60 per song under the controlled composition clauses of recording contracts. Promotional Costs Major labels budget approximately 20% of annual gross income for promotion and selectively allocate the funds according to sales projections for each
Question 2 (Objective 3f) – You are using the break-even analysis to decide whether to make or buy a small metal part used in your product. The variable costs are $10 to buy and $5 to make. The fixed costs are $2000 to buy and $22,000 to make. Therefore, you should: a) Buy the part if volumes are expected to be greater than 4000 b) Buy the part if volumes are expected to be greater than 3000 c) Make the part if volumes are expected to be greater than 4000 d) Make the part if volumes are expected to be greater than 3000 Question 3 (Objective 3a) - The goals of a purchasing organization include: a) Reducing total cost b) Ensuring raw materials are on hand when they are needed c) Reducing price only d) All the above e) A and B only Question 4 (Objective 3b) - A buyer received a materials requisition for a new part. What should the buyer do next?
I got the ADB dividing the Gross sales by the 360 days: $1,200.000 / 360 = $3,333.33 Receivables balance = $3,333.33 x 27 = $89,999.91 3. Calculate the firm’s new receivable if Milwaukee Surgical toughened up on its collection policy, with the result that all non-discount customer paid on the 30th day. 30% pay on the 10 and take discount 70% pay on the 30 ACP = (0.3 x 10 days) + (0.7 x 30 days) 3 + 21 = 24 days Receivables balance = ADB x ACP Receivables balance = $3,333.33 x 24 = $79,999.92 4. Assuming the cost to the firm to carry receivables is 8% per annum; calculate the annual savings resulting from the toughened credit policy. (Assume the entire amount of receivables had to be financed).
User | Alonzo Doby | Course | Spring2014-ECO2023-Princ Economics II-397328 | Test | Chapter 4 Quiz | Started | 2/12/14 10:49 PM | Submitted | 2/12/14 11:24 PM | Due Date | 2/19/14 11:59 PM | Status | Completed | Attempt Score | 6 out of 20 points | Time Elapsed | 34 minutes out of 40 minutes. | Instructions | | * Question 1 0 out of 2 points | | | Examine the graph below. If the equilibrium price is P1, then producer surplus | | | | | Selected Answer: | can be determined by the area of the triangle acP1. | | | | | * Question 2 2 out of 2 points | | | Examine the graph below. Consumer surplus is | | | | | Selected Answer: | defined by the area of the triangle
MPBC holding cost to maintain sales, and keep up with growth is only a mere fraction on the dollars. If you look at the height of the forecast sales in month is 96 bicycles. The reorder point at 130 bicycles easily takes care of their maximum monthly sales. The reorder point is larger than the EOQ forecasted sales of 44 units. Since the bicycle demand is monthly, and it can take up to 4 weeks to receive parts (roughly one month) its perfect.