A labor-intensive process has a fixed cost of $338,000 and a variable cost of $143 per unit. A capital-intensive (automated) process for the same product has a fixed cost of $1,244,000 and a vari-able cost of $92.50 per unit. How many units must be produced and sold at $197 each for the auto-mated process to be preferred to the labor-intensive process

Answers

Answer 1

Answer:

the 17,941 units should be produced and sold

Explanation:

The computation of the number of units that should be generated and sold is shown below:

Let us assume the number of units be n

Now as we know that

Total labor cost = variable cost + fixed cost

So the equations are

For labor intensive = $33,8000 + 143 n

And

For capital intensive = $1,244,000 + $92.5n

It could be written as

$1,244,000 + $92.5 n  <  $338,000 + $143 n

After solving it

n> 906,000÷ 50.5

n>17941

And,

$1,244,000 + $92.5 n < 197 n

After solving it

n>$1,244,000 ÷ 104.5

n>11,904

So the highest is 17,941

Therefore the 17,941 units should be produced and sold


Related Questions

Suppose that due to a fear that the United States is about to enter a long period of stagnant growth, stock prices fall by 50% on average. Predict what would happen to spending by consumers.

Answers

Answer:

spending would increase

Explanation:

Disposable income is either saved (invested) or spent.

If stock prices are expected to fall, individuals would be less willing to save their income and would prefer to spend their income instead.

As a result, spending would increase

what is scientific management theory??​

Answers

Scientific management is a management theory that analyzes work flows to improve economic efficiency, especially labor productivity.

U.S. plane manufacturer McDonnell-Douglas has authorized Mitsubishi Heavy Industries, a Japanese company, to use its trademarks, patents, and other proprietary knowledge to manufacture F-15 fighter planes. Mitsubishi Heavy Industries pays McDonnell-Douglas. This is an example of: Group of answer choices

Answers

Answer:

Contract Manufactring

Explanation:

From the question, about U.S. plane manufacturer McDonnell-Douglas who has authorized Mitsubishi Heavy Industries, a Japanese company, to use its trademarks, patents, and other proprietary knowledge to manufacture F-15 fighter planes. Mitsubishi Heavy Industries pays McDonnell-Douglas. In this case, This is an example of Contract Manufacturing. Contract manufacturing can be regarded as the way of outsourcing of parts that are needed during the process of manufacturing of a particular product when relating with third party.

A portfolio is invested 20 percent in Stock G, 55 percent in Stock and 25 percent in Stock K. The expected returns on these stocks are 11 percent, 19 percent, and 23 percent, respectively. What is the portfoto's expected return

Answers

Answer: 18.4%

Explanation:

The Portfolio expected return will b calculated as the multiplication of each respective return by their respective weight. This will be:

= (20% × 11) + (55% × 19) + (25% × 23)

= (0.2 × 11) + (0.55 × 19) + (0.25 × 23)

= 2.2% + 10.45% + 5.75%

= 18.4%

The following can be considered as international barriers:

A•Economic and technological

B• Political and legal
C •Social and cultural
D• all of the above
E•none of the above

Answers

Answer:

the answer is the last one e

Investors want a return that satisfies the following expectations: Group of answer choices A return for delaying consumption An additional return for accepting dividends rather than capital gains Both A and B. An additional return for taking on risk

Answers

Answer:

✓ An additional return for taking on risk

✓A return for delaying consumption

Explanation:

Return on investment can be regarded as as the net profit from an investment per the cost. When there is highreturn on an investment then the profit is favourable with respect to the cost of the investment. ROI allows investors to know the effeciency of their various investments. It should be noted that an Investors want a return that satisfies the following expectations:

✓ An additional return for taking on risk

✓A return for delaying consumption

The first unit of a product took 400 hours to complete. The firm plans to produce 8 units in the first month and 10 units in the second month. If an 80% learning curve is expected, how many hours will the firm use to work on the product during the second month

Answers

Answer:

1,200 hours

Explanation:

Solving mathematically this will be :

y = ax^b

where,

y is the cumulative average time required to produce x units

a is the time required to produce the first unit of output

x is the number of units of output under consideration

b is the log of the Learning Curve % divided by Log 2

The firm use 150 hours to work on the product during the second month

Amount of time used in the first month will be calculated as :

y = 400(8)^(-0.322)

  = 204.8 hours (average)

Total for 8 units = 204.8 hours × 8 units

                           = 1,638.40 hours

Amount of time used for the total months to manufacture 18 units :

y = 400(18)^(-0.322)

  = 157.74 hours (average)

Total for 18 units = 157.74 hours × 18 units

                            = 2,839.32 hours

Therefore,

Hours to be used in the second month = Time on 18 units - Time on 8 units

                                                                 = 2,839.32 hours - 1,638.40 hours

                                                                 = 1,200 hours

So, the firm use 1,200 hours in total for the 10 units. Which gives an average of 120 hours per unit

Why is constant return to scale incompatible with perfect competition?

Answers

Answer:

The constant return to scale is incompatible with perfect competition because in a perfect competition the competitive firm as a price taker exercises no influence over the market price of its product.  Therefore, the constant return to scale does not enable the competitive firm to have enough revenue to pay competitive prices for its inputs.  Inevitably, a constant return to scale is incompatible with perfect competition.

Explanation:

A constant return to scale suggests that the market value of the inputs equals the value of the outputs.  When this situation persists, there is no profit.  With this prevailing circumstance, the competitive firm lacks the required resources to compete effectively in the market.

Firm A is concerned about the reactions of buyers to the price it sets for its product. Firm B is concerned about the reactions of buyers and its few rivals to the price it sets for its product. Firm C has no control over the price at which its product is sold. Which of the following best describes Firms A, B, and C respectively?
A) a monopolistic competitor, an oligopolist, and a pure competitor.
B) an oligopolist, a monopolistic competitor, and a pure competitor.
C) a monopolistic competitor, a pure competitor, and an oligopolist.
D) a pure competitor, an oligopolist, and a monopolistic competitor.
E) None of the above is correct.

Answers

Answer:

A

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.

In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.

An example of monopolistic competition are restaurants

An Oligopoly is when there are few large firms operating in an industry. While, a monopoly is when there is only one firm operating in an industry.

Oligopolies are characterised by:

price setting firms

product differentiation

profit maximisation

high barriers to entry or exit of firms

downward sloping demand curve

Sheldon and Odessa Sanford are married and elect to file Married Filing Jointly. Sheldon is 73 years old and Odessa is 64 years old. Odessa earned $33,000 in wages. After 30 years of service, Sheldon retired from his job on February 1, 2018. During his career, Sheldon contributed pre-tax dollars to a qualified 401(k) retirement plan through his employer. His retirement is fully taxable. Sheldon also received Social Security benefits of $7,600. Sheldon and Odessa are not blind and cannot be claimed as dependents by another taxpayer. Sheldon and Odessa are U.S. citizens and have valid Social Security numbers. 1. The required minimum distribution rules are temporarily waived for tax year 2020. True False

Answers

Answer:

True

Explanation:

The Coronavirus Aid, Relief, and Economic Security (CARES) Act made several changes to current policies in order to help American citizens during the current health crisis. One of these changes was to waive the required minimum distributions (RMD). This waive applies to all types of retirement accounts.

Answer:

24800

Explanation:

Consider the short run and the long run and then choose the statement that is correct.
A. In the short run, other things remaining the same, a given percentage change in the quantity of money brings an equal percentage change in the price level.
B. In the short run, money market equilibrium determines the price level.
C. The real interest rate is independent of the inflation rate in the long run.
D. The real interest rate is dependent on the price level in the long run

Answers

Answer:

The correct statement is:

A. In the short run, other things remaining the same, a given percentage change in the quantity of money brings an equal percentage change in the price level.

Explanation:

This economic situation is due to the market forces of demand and supply.  Therefore, when the interest rate rises, if everything else remains equal, the opportunity cost of holding money rises.  At the same time, the quantity of money demanded in the market decreases.

The two principal sources of financing for corporations are Group of answer choices cash and common equity common equity and preferred equity debt and accounts payable debt and equity

Answers

Answer:

common equity and preferred equity

Explanation:

It is important to remember that, each source of finance carry its own benefits and risk for companies

The two principal sources of financing for corporations are common equity and preferred equity.

This is so because, with Common Equity, the Company can raise more capital through the public and with Preferred Equity the company reduces its financial risk since most dividends using this instrument can be adjusted or deferred unlike using debt instruments which carry a significant financial risk.

How Does Being Good Pay Off? Organizations are under increasing pressure to do the right thing and serve the public good, and there are a multitude of ways that organizations can be ethical and socially responsible. Although organizations should always consider ways to do this, these decisions often come at a financial cost and thus create dilemmas for organizational decision makers. This activity is important because it highlights the ways that being socially responsible is beneficial for organizations. The goal of this exercise is to challenge your knowledge of research findings on how being ethical and socially responsible pays off for organizations. Listed in the diagram are statements showing how ethical and socially responsible behavior by a company affects various stakeholders. Read the statements and then drag each term to the element of ethical or socially responsible behavior that it best represents Interpersonal Relationships Employees Profits Stock Price Revenue Customers Consumers want to Socially responsible spend more money companies generate An ethical scandal can cause a with companies that significantly higher 5- year returns on are socially company's valuation invested capital responsible to plummet Workers may be happier and less likely to leave when their company is socially responsible Companies with Investors are effective ethics and increasingly seeking compliance cultures socially responsible find their employees companies to put are less likely to their money into retaliate against one another

Answers

Answer:

How Does Being Good Pay Off?

Effects of ethical and socially responsible behavior by a company on various stakeholders:

1. Consumers want to spend more money with companies that are socially responsible.

Customers

2. Socially responsible  companies generate significantly higher 5- year returns on invested capital.

Profits

3. An ethical scandal can cause company's valuation to plummet.

Stock Price

4. Workers may be happier and less likely to leave when their company is socially responsible.

Employees

5. Investors are increasingly seeking socially responsible companies to put their money into.

Revenue

6. Companies with effective ethics and compliance cultures find their employees  are less likely to  retaliate against one another.

Interpersonal Relationships

Explanation:

a) Stakeholders Effects:

Interpersonal Relationships

Employees

Profits

Stock Price

Revenue

Customers

b) Organizations are not only under pressure to do right, but many have discovered that it pays more in both revenue and profits to do right.  The society has given organizations the opportunity to move in the right direction, and they should never lose it because the consequences of neglecting this onerous duty are too dear to contemplate.

A company starts a technology organization dedicated to training high school students in the use of the latest program languages. How can the company justify creating and funding such an organization since it is not about its primary products

Answers

The correct answer to this open question is the following.

You forgot to attach the options for this question. However, by doing research we can answer the following.

The company justifies creating and funding such an organization since it is not about its primary products for the following reason: "The funds spent on the tech organization will increase the number of qualified tech people in the society and community."

And action like can justify the funds to create the technology organization dedicated to training high school students in the use of the latest program languages. The reason? It is an action aimed to strengthen the public image of the company by doing some actions that impact and benefit the community. The organization will help people to learn more about technology and be more interested in a career in technology.

The consumer price index is reported monthly by the us bureau of labor statistics:________

Answers

Incomplete question. I inferred you want an affirmation if the statement is true/false.

Answer:

True.

Explanation:

The US Bureau of Labor Statistics (BLS) a federal agency continuously reports every month the Consumer price index in the United States. For example,

One may ask: What is the consumer price index? Well, in simple terms, it is a measuring scale that calculates how much prices of consumer goods (such as food, energy cost, transportation, etc) changed in the past month. This gives us an overview if there are positive or negative changes in the cost of living is.

Your company is considering two investments: buying 10% of the sharesin a publicly traded American company that owns five power generation units in Paksitan, or partnering equally with one other private company in building a new power generation unit in Pakistan. For which project would the required return be higher? Cite two reasons why?

Answers

Answer:

First project

Explanation:

The 2 options/ project been considered:

1. Buying 10% of shares in a publicly traded american company that owns five power generation units in Pakistan

2. To be partner with equal share with one private company in building a new power generation unit in Pakistan

The first option/project would have a higher required return because:

-  This company is already settled in the country having five power generation units in Pakistan. All these units are running and making profit.

-  Investment Option 2 is high riskier as we do not know the details of the new company and there are so many unforeseen circumstances surrounding establishing such project in the company. It will also take time to establish in order to start make it profitable.

Lucas Diving Supplies Company, in its first year of business, had labor costs of $66,000, overhead costs of $98,000, materials purchases of $22,000, and ending materials and work-in-process inventories of $1,000 and $2,000, respectively. What is the amount of cost of goods manufactured in the first year of operations

Answers

Answer:

the cost of goods manufactured is $183,000

Explanation:

The computation of the cost of goods manufactured is shown below:

Cost of goods manufactured = Labor cost + direct material purchased + overhead cost - ending balance of material - ending balance of work in process

= $66,000 + $22,000 + $98,000 - $1,000 - $2,000

= $183,000

Hence, the cost of goods manufactured is $183,000

Discuss an example of a work-related project that is able to be broken down into structure, tasks, subtasks, and work packages, and why project management in the form of a CPM/PERT chart would be cost effective.

Answers

Answer: CPM/PERT charts are very resourceful tools that help schedule and manage complex projects

Explanation:

CPM/PERT charts are very resourceful tools that help schedule and manage complex projects. A critical path analysis is vital when considering this as it determines the failure or success on the projects. They can also be used for assessing the problems faced during implementation of plans.

PERT is a variant of Critical Path Analysis that takes a more skeptical view of the time needed to complete each project stage.

Computerized order processing system: Hardware a) Installation -> Area Prep -> Tech/Engineer-> Wiring ->Connections b) Testing->Connections->Wiring->Servers

What account below is not an asset?
A. Capital Stock
B. Inventory
C. Cash
D. Accounts Receivable

Answers

Answer:

A. Capital Stock

Explanation:

Accounts are categorized following the accounting equation of assets are equal to equity plus liabilities. Asset accounts track and record the resources that a business owns or controls. Assets being the valuable items that a business uses to generate income or maintain operations.

Equity represents the owner's interest in the business. It comprises capital contributions and retained earnings. Capital stocks belong to equity accounts and not asset accounts.

sorry that wasn't the right answer but I love the effort you put into it!

Answers

Answer: 0+0=0 (Thank youuuu for the points)

You and your friend bought the exact same TV and paid 7% sales tax on the purchase. Your friend eams three times as much money as you. Which tax system is this? (5 points)

-Regressive

-Progressive

-indirect

-Direct

Answers

Answer:

-Regressive

Explanation:

A regressive tax system imposes a greater tax burden on low-income earners. Imposing a uniform tax rate on everyone regardless of their income is an example of a regressive tax system. High-income earners will be left with more money to spend if the tax rate is the same for everyone.

Since this friend earns three times more, the sales tax will not have a lot of effect on their income. The sales tax will have a significant impact on the low-income earner as it will take away a sizeable part of their disposable income.

What is the PV of an annuity due with 5 payments of $7,900 at an interest rate of 5.5%? a. $41,997.01 b. $40,573.38 c. $41,285.20 d. $43,776.54 e. $35,590.69

Answers

Answer:

PV= $35,590.69

Explanation:

First, we need to calculate the future value using the following formula:

FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}

A= annual payment

FV= {7,900*[(1.055^5) - 1]} / 0.055 + {[7,900*(1.055^5)] - 7,900}

FV= 44,090.62 + 2,424.98

FV= 46,515.6

Now, we can determine the present value:

PV= FV/(1+i)^n

PV= 46,515.6 / (1.055^5)

PV= $35,590.69

Suppose that Robin withdrawals $100 of cash from her checking account at Trendy Bank and uses it to buy a camera from Adam, who deposits the $100 in his checking account in Gotham Bank. Assuming a reserve ratio of 10% and no initial excess reserves, determine the extent to which:

Answers

Answer:

The alternative including its query is presented throughout the explanation section below.

Explanation:

(a)

The strategic petroleum insufficiency should also be,

= [tex]100-0.10\times 100[/tex]

= [tex]90[/tex]

This means that the financial institution would have to start reducing its loan payments as well as currency exchange by $90.

(b)

Yes, you can significantly raise your loan deposit accounts secure manner. Early years setting throughout Serenity Bank would be increased, therefore the proportion of total reserves would indeed be $90.

The margin requirement of spending in the market hasn't started to change since the percent impact would be similar. Robin's account was whittled down by $100, as well as Adam's payment was continued to increase whilst also $100. So there's no modification throughout the monetary policy.

Assume that the company uses absorption costing. Compute the unit product cost for one barbecue grill.2. Assume that the company uses absorption costing. Prepare an income statement for last year.

Answers

Answer:

The full question is "Exercise 6-15 Absorption Costing Unit Product Cost and Income Statement [LO6-1, LO6-2] Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for $210. Data for last year’s operations follow: Units in beginning inventory 0 Units produced 20,000 Units sold 19,000 Units in ending inventory 1,000 Variable costs per unit: Direct materials $50 Direct labor $80 Variable manufacturing overhead $20 Variable selling and administrative $10 Total variable cost per unit $160 Fixed costs: Fixed manufacturing overhead $700,000 Fixed selling and administrative $285,000 Total fixed costs $985,000 Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one barbecue grill. 2. Assume that the company uses absorption costing. Prepare an income statement."

1.  Using absorption costing to compute the unit product cost for one barbecue grill

Particulars                                       Amount

Direct material                                    $50

Direct labor                                         $80

Variable manufacturing overhead    $20

Fixed manufacturing overhead         $35    ($700000/20000)

Unit product cost                              $185

2. Assume that the company uses absorption costing. Prepare an income statement.

Particulars                                                        Amount

Sales (19000*210)                                        $3,990,000

Less: Cost of goods sold (19000*185)       ($3,515,000)

Gross margin                                               $475,000

Less: Selling and administrative expense ($475,000) (19000*10+285000)

Net operating income                                      $0

27. Subscription owing N6,000 at 31/12/2014.
Subscription in advance 14,000 at
31/12/2014. Cash received as subscription
during the year was N80,000.
The subscription for the year 2014 was
(a) N90,000 (b) N82,000
(c) A78,000 (d) N70,000

Answers

Answer:

$72,000

Calculation for The subscription for the year 2014

Using this formula

2014 Subscription=Cash received-Subscription in advance+Subscription owing

Let plug in the formula

2014 Subscription=$80,000-$14,000+$6,000

2014 Subscription=$72,000

Therefore The subscription for the year 2014 was $72,000

Alyssa is opening a bicycle shop, and her monthly expenditures to get the shop up and running exceed her monthly income. Alyssa is best described as

Answers

Answer: as a borrower or as a demander of funds

Explanation:

From the question, we are informed that Alyssa is opening a bicycle shop, and her monthly expenditures to get the shop up and running exceed her monthly income.

Since Alyssa's expenditure is more than the income generated every month, it shows that she's a demanded of funds as she borrows more than what she earns.

A soap company has been selling their soap to consumers with great success. However, recently they have become aware that their soap is also a tremendous grease cutter and could be sold to industry. Which category of business customers could the company target and why

Answers

Answer and Explanation:

As we know that the soap is classified as health care products for the purpose of bathing. Also it acts as a grease cuter or the detergent but in the case of targetting the customers it would be treated as a health care product and commercial one also due to which it could be grown easily. But at the same time it should be ensured that there is no harmful effect

So if it is targeted in both the way than the business would grow in a fastest way that results in earning profits

When Coca-Cola introduced Coke Zero, this was an example of a _____ strategy.

Answers

Answer:

B) product line extension

Explanation:

The product line extension refer to the extension of the product that means introduction of a new item in the same category of product in terms of new flavors, colors, sizes, etc

Since in the question it is mentioned that the Coca-cola introduced the coke zero so this represent the product line extension strategy example

Therefore the correct option is B.

Inflation and unemployment

Answers

Answer:

"Historically, inflation and unemployment have maintained an inverse relationship, as represented by the Phillips curve. Low levels of unemployment correspond with higher inflation, while high unemployment corresponds with lower inflation and even deflation"

Explanation:

hope this helps

The Kaizen approach to change: Select one: a. favors the use of a large number of small local projects b. has to be led by a team of experts appointed by management c. is based on breakthrough strategies d. has to be company-wide

Answers

Answer:

A)favors the use of a large number of small local projects

Explanation:

Kaizen approach can be regarded as an approach that enables continuous improvement as a result of the idea which focus that a small as well as a continuous positive changes can give rise to tangible improvements. This approach focus on commitment as well as cooperation. It should be noted that The Kaizen approach to change favors the use of a large number of small local projects.

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