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Mazyrski [523]
2 years ago
6

This month your vendor invoiced $31,500 in testing charges for your production run. The unit cost for testing is twice as much f

or each of the first 400 units per month as compared to each unit over 400. If we shipped 500 units to the vendor this month, find: a) Average cost per unit b) Cost per unit below the price break point c) Marginal cost for the 650th unit
Business
1 answer:
Ket [755]2 years ago
4 0

Answer:

a) Average Cost per unit = $63 / unit

b) Cost per unit below break point = $ 70 / unit

c) Marginal Cost for 650th Unit = $35 / unit

Explanation:

a) To calculate average cost per unit, we simply divide the total cost for the month $31500 by the total units shipped this month 500 units.

Average cost p.u = 31500 / 500 = $63 / unit

b) The breaking point is at 400 units. The cost for initial 400 units is twice that of the additional units after 400. So, we can say that in this case of 500 units, it takes 2x cost to test initial 400 units while x to test the later 100 units.

Thus,

  • 31500 = 400 * 2x + 100 * x
  • 31500 = 800x + 100x
  • x = 31500 / 900
  • x = 35

So, plugging 35 in place of x,

the cost per unit below cost break = 2 * 35 = $70 / unit

c) Marginal cost of 650th unit is simply x that is $35 / unit

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Management in Life Annabelle and Bettina share a dorm room. They like each other, but they disagree about how often to clean. Ev
Ganezh [65]

Answer:

A). Annabelle and Bettina will learn from each other .

B). The roommates will come up with a creative solution."

Explanation:

Anabelle and Bettina are involved in a 'cognitive' conflict as it occurs when they both experience a mental as well as emotional discomfort when they are confronted with the information that challenges their existing ideas or beliefs. The most likely outcomes of this situation would be that they <u>'both would learn from each other' by accepting each other's point of view and adapting with the new information that would help them 'reach a creative solution' to resolve their conflict over the cleaning of their room</u>. Therefore, <u>options A and B</u> are the correct answers.

8 0
2 years ago
The _____ takes into consideration both the direct and indirect global warming effects of refrigerants.
dusya [7]
<span>The total equivalent warming impact (TEWI) takes into consideration both the direct and indirect global warming effects of refrigerants. In addition to the direct impact of the refrigerant (which is conveniently estimated by GWP), any system or process, which requires energy input, indirectly affects the environment. This impact is originated from CO2 emissions from the energy production processes. TEWI can be calculated using the equation below: TEWI = direct emissions + indirect emissions = (GWP×L×N)+(Ea×β×n), where L – annual leakage rate in the system, kg (3% of refrigerant charge annually), N – life of the system, years (15 years), n – system running time, years (based on weather data, 4910 hours), Ea – energy consumption, kWh per year (modelled for each refrigerant), β – carbon dioxide emission factor, CO2-eq. emissions per kWh (165 g CO2/kWh).</span>
6 0
2 years ago
Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: ($ in thousands) E-Travel P
svlad2 [7]

Answer:

E-travel-1.15

Pricecheck-0.38

Explanation:

Debt to equity ratio compares the finance provided by outsiders viz-a-viz that which is provided by the original owners of the company,the shareholders, in order to determine whether or not the company is at risk of slow growth if outsiders withdraw their funds.

Debt to equity=total liabilities/equity

E-Travel:

total liabilities is $2,854,475

total equity $2,482,681

debt-equity ratio=$2,854,475/$2,482,681=1.15

Debtholders provided more capital funding than the stockholders

Pricecheck:

total liabilities is $472,610

total equity is $1,257,614

debt-to-equity ratio=$472,610/$1,257,614 =0.38

4 0
2 years ago
Patrick Company expects to generate freeminuscash of​ $120,000 per year forever. If the​ firm's required return is 12​ percent,
photoshop1234 [79]

Answer:

$6.3 per share

Explanation:

There are two method of Valuation of the firm

  • Weighted average cost of the capital (WACC)
  • Free cash flow to equity (FCFE)

We have to calculate the value of the firm using FCFE. Free cash flow to equity (FCFE) is the amount of cash flow generated by the business and potentially available for distribution among the stockholders.

Value of firm = Free cash flow / required rate of return = $120,000 / 12% = $1,000,000

Market value of Equity = Total value of firm - Market value of Debt - Market value of Preferred share

Market value of Equity = $1,000,000 - $300,000 - $70,000 = $630,000

Value of​ Patrick's stock = Market Value of equity / shares of stock outstanding = $630,000 / 100,000 = $6.3 per share

4 0
2 years ago
First Simple Bank pays 6.4 percent simple interest on its investment accounts. If First Complex Bank pays interest on its accoun
weqwewe [10]

Answer:

rate set by first complex bank is  = 5.07 %

Explanation:

given data

simple interest = 6.4 %

investment time = 10 year

solution

we consider here first total interest on the amount $100  paid as simple interest is for 10 year will be

interest = $100 × 6.4% × 10

interest = $64

so future value will be = $100 + $64 = $164

so now we consider rate of interest = r

so that now we apply here future value formula

future value = investment × (1+r)^{t}   ...............1

$164 = $100 × (1+r)^{10}  

1.64 =   (1+r)^{10}

solve it we get

r =  0.05071

so rate set by first complex bank is  = 5.07 %

7 0
2 years ago
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