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Nadusha1986 [10]
2 years ago
13

Company X classifies the total transportation costs paid to deliver goods to customers as a mixed cost with respect to the units

sold. During the current year, the units sold have decreased unexpectedly, but are still within the relevant range. Which of the following statement is (are) correct about the transportation costs? Group of answer choices The per unit transportation costs increase as the units sold decrease. The total transportation costs increase proportionally to the decrease of units sold. The per unit variable component of transportation costs remains constant. The per unit transportation costs decrease proportionally to the decrease of units sold. The total transportation costs decrease proportionally to the decrease of units sold.
Business
1 answer:
ivann1987 [24]2 years ago
7 0

Answer:

The per unit transportation costs increase as the units sold decrease.

The per unit variable component of transportation costs remains constant.

Explanation:

mixed costs are costs that share both a fixed component and a variable one, e.g. transportation costs generally are mixed because depreciation, insurance and sometimes even maintenance costs are fixed, while gasoline and drivers' wages are variable.

If total units transported decrease, then the fixed part of transportation costs will increase on a per unit basis. Even if the variable part remains stable, total costs per unit will still increase.

We can plug in some numbers:

Fixed expenses = $1,000 per month

variable costs = $2 per package

total packages sent during month 1 = 500

total costs = $1,000 + ($2 x 500) = $2,000

costs per unit = $4

if suddenly the number of packages delivered drops to 300

total costs = $1,000 + ($2 x 300) = $1,600

costs per unit = $5.33

a 40% decrease in the number of packages delivered resulted in a 33.33% increase in costs per unit delivered.

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Show that if the contribution to profit for trains is between $1.50 and $3, the current basis remains optimal. If the contributi
Dmitriy789 [7]

Answer:

210

Explanation:

Let us consider that x is the number of soldiers produced each week and y is number of trains produced each week.

Also, weekly revenues and costs can be expressed in terms of the decision variables x and y.

Then,

Hence the profit which we want to maximize is given by,

Now the constraints are given as,

Finishing Constraint:

Each week, no more than 100 hours of finishing time may be used.

Carpentry Constraint:

Each week, no more than 80 hours of carpentry time may be used.

Demand Constraint:

Because of limited demand, at most 40 soldiers should be produced each week.

Combining the sign restrictions and with the objective function  and constraints,and yield the following optimization model:

Such that,

First convert the given inequalities into equalities:

From equation (1):

If x=0 in equation (1) then (0,100)

If y=0 in equation (1) then (50,0)

From equation (2):

If x=0 in equation (2) then (0,80)

If y=0 in equation (2) then (80,0)

From equation (3):

Equation (3) is the line passing through the point x=40.

Therefore, the given LPP has a feasible solution first image

The optimum solution for the given LPP is obtained as follows in the second image

The optimal solution to this problem is,

And the optimum values are  .

Let c be the contribution to profit by each train. We need to find the values of c for which the current, basis remain optimal. Currently c is 2, and each iso-profit line has the form

3x +  2y = constant

y = 3x/2 +constant/ 2

And so, each iso-profit line has a slope of  .

From the graph we can see that if a change in c causes the isoprofit lines to be flatter than the carpentry constraint, then the optimal solution will change from the current optimal solution to a new optimal solution, If the profit for each train is c, the slope of each isoprofit line will be.

-3/c

Because the slope of the carpentry constraint is –1, the isoprofit lines will be flatter than the carpentry constraint.

If,

-3/c<-1

c >3

and the current basis will no longer be optimal. The new optimal solution will be point A of the graph.

If the is oprofit lines are steeper than the finishing constraint, then the optimal solution will change from point B to point C. The slope of the finishing constraint is –2.

If,

-3/c < -2 or

C < 1.5

Then the current basis is no longer optimal and point C,(40,20), will be optimal. Hence when the contribution to the profit for trains is between $1.50 and $3, the current basis remains optimal.

Again, consider the contribution to the profit for trains is $2.50, then the decision variables remain the same since the contribution to the profit for trains is between $1.50 and $3. And the optimal solution is given by,

z = 3× (20) + 2.5 × (60)

= 60 + 150

= 210

5 0
2 years ago
On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of $36 million. Ameen uses strai
romanna [79]

Answer:

taxable income 44,000,000

Explanation:

Beginning tax basis of the equipment: 20,000,000

ending tax bais of the equipment         12,000,000

depreciation for tax purposes:               8,000,000

<u>accounting depreciation:</u>

beginning value 30,000,000

ending value      28,000,000

book depreciation 2,000,000

<u>Difference in depreciations:</u>

8,000,000 - 2,000,000 = 6,000,000

income 50.000.000

less        6,000,000 temporary difference

taxable income 44,000,000

6 0
1 year ago
What is the maximum amount you would pay for an asset that generates an income of $ 250,000 at the end of each of five years if
Galina-37 [17]

Answer:

170,146

Explanation:

$250,000 / (1.08)5= 170,146

3 0
1 year ago
Fiori Corporation's relevant range of activity is 4,700 units to 11,500 units. When it produces and sells 8,100 units, its avera
Snezhnost [94]

Answer:

$12.6

Explanation:

Calculation for incremental manufacturing cost

The incremental manufacturing cost will be the addition of the following :

Direct materials $ 6.50

Direct labor $ 3.90

Variable manufacturing overhead $ 2.20

Incremental manufacturing cost $12.60

Therefore incremental manufacturing cost will be $12.60

8 0
2 years ago
Huron has provided the following year-end balances: Cash, $25,000 Patents, $7,900 Accounts receivable, $9,300 Property, plant, a
WITCHER [35]

Answer:

$74,900

Explanation:

Given that,

Cash = $25,000

Patents, = $7,900

Accounts receivable, = $9,300

Property, plant, and equipment, = $98,700

Prepaid insurance, = $3,600

Accumulated depreciation, = $10,000

Inventory, = $37,000

Retained earnings, = 15,500

Trademarks, = $12,600

Accounts payable, = $8,000

Goodwill, = $11,000

Therefore,

Huron's current assets:

= Cash + Accounts receivable + Prepaid insurance + Inventory

= $25,000 + $9,300 + $3,600 + $37,000

= $74,900

3 0
1 year ago
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