PW = 50000×(((1.12^5)-1)÷(.12×1.12^5))= $180239
Answer: $67,600 and $2600
Explanation:
Total unit = 13,000
Defective unit cost = $5.20
Resale price = $3.00
Reworked = $5.00
Full price = $8.20
Opportunity cost
= Full price - replacement unit
= 8.20 - 5.20
= 3.00
= . Cost of reselling
= 13,000 × 3.00
= $39,000
1. Cost of defective units
= 13,000 × 5.20
= $67,600
2. Cost of reworked
= $5.00 × 13,000
= $65,000
3. Full price
= 13,000 × $8.20
= $106,600
B. Incremental income of selling the unit as scrap and reworked
Scarp = $67, 600
Reworked = $(106600 -39, 000- 65,000)
= $2600
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Answer:
(a)
Mathematical Equation for break-even
F = QP - QV
Where
F = fixed cost
Q = Break-even quantity
P = Selling price
V = Variable cost
F = Q ( P - V )
Q = F / ( P - V )
Q = $327,030 / ( $630 - $300 )
Q = $327,030 / $330
Q = 991 units
(b)
Contribution Margin = Price per unit - Variable cost per unit
Contribution Margin = $630 - $300 = $330
Break-even Point in Units = Fixed Cost / Contribution margin per unit
Break-even Point in Units = $327,030 / $330 = 991 units
Explanation:
Mathematical equation use the the break-even equation which represent the behavior of each element towards the break-even point.
Contribution per unit method use the contribution of each unit to calculate the break-even point.
A. Fit
B. Unique Activities
C. Positioning
D. Trade-off
E. Operational effectiveness
It was an example of Positioning.
Answer: Option C.
<u>Explanation:</u>
A positioning strategy is the point at which an organization picks a couple of significant key territories to focus on and exceeds expectations in those regions.
A compelling positioning procedure thinks about the qualities and shortcomings of the association, the requirements of the clients and showcase and the situation of contenders. This helps to increase the effectiveness of the company.