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Gennadij [26K]
2 years ago
15

Peter Billington Stereo, Inc.supplies car radios to auto manufacturers and is going to open a new plant. The company is undecide

d between Detroit and Dallas as the site. The fixed costs in Dallas are lover due to cheaper land costs, but the variable costs in Dallas are higher because shipping distances would increase. Given the following costs: Dallas DetroitFixed Costs 560,000 780,000Variable Costs $30 / radio $22 / radioA. Based on the Analysis of the volume, after rounding the numbers to the nearest whole number, Dallas is best and below and Detroit is best above ? B. Dalla's fixed costs increase by 10%. Based on the Analysis of the volume, after rounding the numbers to the nearest whole number, Dallas is best and below and Detroit is best above ?
Business
1 answer:
Goryan [66]2 years ago
7 0

Answer:

A. $27,500

B. $20,500

Explanation:

A. The computation is shown below:

= (Fixed cost of Detroit - Fixed cost of Dallas) ÷ (Variable cost of Dallas - Variable cost of Detroit)

= ($780,000 - $560,000) ÷ ($30 - $22)

= ($220,000) ÷ ($8)

= $27,500

B. The computation is shown below:

= (Fixed cost of Detroit - Fixed cost of Dallas) ÷ (Variable cost of Dallas - Variable cost of Detroit)

= ($780,000 - $616,000) ÷ ($30 - $22)

= ($164,000) ÷ ($8)

= $20,500

The Dalla fixed cost is increased by 10%, so the new fixed cost would be

= $560,000 + $560,000 × 10%

= $560,000 + $56000

= $616,000

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Answer:

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3 0
2 years ago
Which option is most likely a complementary good for a smartphone?
Elodia [21]

Answer:

A.

Explanation:

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6 0
2 years ago
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There are simultaneous changes in the demand for and supply of tablet​ devices, with the consequences being an unambiguous decre
lord [1]

Answer: c. Demand decreases and supply decreases.

Explanation:

When demand for tablets decrease, the demand curve shifts to the right. The price and quantity declines. At the same time, when supply also falls, the supply curve shifts to the left leading to an increase in price and a fall in quantity.

Since, decrease in demand and supply have opposite effect on the price there is no change in the price of tablets.

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Thus, the correct option is c, Demand decreases and supply decreases.

3 0
2 years ago
How much cash MUST a buyer furnish in addition to a $2,500 deposit if the lending institution grants a 90% loan on an $80,000 pr
Lostsunrise [7]

Answer:

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Explanation:

The computation of the cash required is shown below:

= Loan amount on property × remaining percentage - additional deposit

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