A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units that cost $5.20 per unit to manufacture. The units can be a) sold as is for $2.80 each, or b) reworked for $4.80 each and then sold for the full price of $8.00 each.

Answers

Answer 1

Answer:

If the company reworks the units, income will increase by $6,400 (compare to sell them as-is).

Explanation:

Giving the following information:

The company has 16,000 defective units.

We will not take into account the original cost of the units. It is irrelevant to the decision making. It will remain constant in both options.

Option A:

Effect on income= 16,000*2.8= $44,800

Option B:

Effect on income= 16,000*(8 - 4.8)

Effect on income= $51,200

If the company reworks the units, income will increase by $6,400 (compare to sell them as-is).


Related Questions

Which of the following categories of workers is not covered under OSHA's Hazard communication Standards?

A) Production engineers manufacturing car batteries.
B) A technician servicing copy machines for most of the day.
C) A receptionist changing the toner in a copy machine
D) Health care workers exposed to latex and disinfectants

Answers

Answer:

Alternative A is the answer - production engineers manufacturing car batteries.

Consider the following costs of a typical firm in a purely competitive industry. The firm has no fixed costs (average total cost = average
variable cost).
Quantity
1
2
3
4
5
6
Average Total
Cost
$10.00
9.50
9.00
9.25
12.60
22.00
Marginal Cost
$9.00
O $9.25
O $10.00
O $8.00
$9.00
8.00
10.00
26.00
69.00
a. Given only the information available, what would you expect product price to be in the long run?

Answers

Answer:yes sir its right 68 dollars result

Explanation:

What is the before-tax cost of debt for a corporation that issued 15-year bonds with a 10 percent annual coupon, paid semi-annually, par value of $1,000, bond sale price of $970, and $20 issue cost per bond, if the corporation has a marginal tax rate of 23%

Answers

Answer:

10.68%

Explanation:

Face value = 1,000

Coupon rate = 10%

Years to maturity = 15

Nper = 15*2 = 30

PMT = 1000*10%/2 = 50

Price(Present value) = Bond sale price - Issue cost

Price(Present value) = 970 - 20

Price(Present value) = 950

Yield to maturity = Rate(Nper, pmt, -pv, fv) * 2

Yield to maturity = Rate(30, 50, -950, 1000) * 2

Yield to maturity = 0.0534 * 2

Yield to maturity = 0.1068

Yield to maturity = 10.68%

Thus, the before-tax cost of debt is 10.68%

Using the variable cost method, determine the selling price (rounded to the nearest dollar) for 30,000 units using the following data:
Variable cost per unit $15
Total fixed costs $90,000
Desired profit $150,000
a. $23
b. $10
c. $8
d. $15

Answers

Answer:

c. $8

Explanation:

Calculation to determine the selling price

First step is to calculate the Markup percent

Markup percent= (90,000 + 150,000) / (30,000 x 15)

Markup percent = .533

Now let calculate the selling price

Selling price=533 x $15 per unit

Selling price= $8

Therefore the Selling price will be $8

An appraiser finds that the subject property—a 10-unit apartment building—has historical vacancy and loss rates of nearly 40%. Comparable properties in the area have rates that are typically about 20%. The subject property suffers from poor management, but is otherwise in good physical condition. How should the appraiser set the vacancy and loss rate used in the appraisal?

Answers

The appraiser set the vacancy close to 20% to align with the market.

A task emptiness is described as a paid post this is newly created, unoccupied, or about to become vacant: for which the company is taking lively steps and is ready to take additional steps to find a suitable candidate from out of doors the business enterprise worried.

The definition of a vacancy in the nation as being empty or available refers to empty and unintelligent thoughts. Whilst a motel has room to be had that a guest can lease, this is an example of emptiness.

Employers commonly advertise sorts of vacancies: everlasting roles, and contract roles. The key difference is that human beings in everlasting roles are market personnel, whilst humans in agreement roles are normally self-hired.

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PLZ HELP!!!
Paul has a very small budget, but he strongly believes that his new product will be a success. Which sales channel should he try given his situation?
A.
franchising
B.
e-commerce
C.
flea market
D.
telemarketing
E.
multilevel marketing

Answers

Answer:

e commerce is right answer

Answer:

E

Explanation:

Which questions about risk should someone ask before making a big purchase? Check all that apply.
What problems are most likely to happern?
OWhat can be done to avoid liability
OWhat could go wrong?
OWhat problems could be most damaging?
OWhat option has no risk?

Answers

Answer:

A

Explanation:

If you need buy it, if it's a want not a need don't buy it

The best way to reconcile any conflict between capital budgeting models and performance evaluation is to use the

Answers

Answer:

How to reconcile the potential conflict between capital budgeting and performance evaluations? Use DCF for both capital budgeting decisions and the performance evaluation.

Explanation:

Mark as brainliest

Follow me

we are twins me and streoberrie

Answers

Answer:

wow thats very cool nice

Answer:

thats not even u.. ion look like that either, dont b lying on the internet.

Explanation:

the picture i linked is me.

Life insurance that covers an insured’s whole life with level premiums paid over a limited time is called:

Answers

Limited-pay life !!!!!

If the government sets a quota of 300 pounds of fish caught per day, then fish will sell for ________ more per pound than the cost of catching the fish.

Answers

Answer:

$20 per pound

Explanation:

According to the attached diagram as we can see that the government sets a quota of 300 pounds for caughting a fish per day due to which the selling price is rised from $30 to $50

Also more than 300 pounds of fish would not be caught per day

Therefore the difference of $20 would be considered

hence, the fish would sell for $20 per pound more

Jane reported to her company about a growing mold issue in the building where she works. As a result, Jane was suspended from work without pay. To whom can Jane report the retaliation for assistance?

Answers

Answer: c. Occupational Safety and Health Administration

Explanation:

Jane can go to the Occupational Safety and Health Administration (OSHA) to report the retaliation because through OSHA, the Federal Government offers protection to employees who are retaliated against for reporting unsafe working conditions.

Indeed Section 11(c) of the Occupational Safety and Health (OSH) Act deals specifically with that by prohibiting any retaliation against employees who report or complain about conditions at work that could be unsafe or unhealthy.

You should apply for several credit cards and use them even if you don't need them
in order to build your credit history.

True or False

Answers

It is a false statement that you should apply for several credit cards and use them even if you don't need them in order to build your credit history.

What is a credit history?

This refers to the record of the borrower's repayment of debts. It entails the record of the borrower's credit history from a number of sources including from the banks, credit card companies, collection agencies,  governments etc.

Most time, the number of credits cards we carry likely will not have an effect on your score in isolation as well as avoid to applying for several new credit cards at one time because it can negatively impact your credit score in the short term, therefore, It is a false statement that you should apply for several credit cards and use them even if you don't need them in order to build your credit history.

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Guerilla Radio Broadcasting has a project available with the following cash flows : Year Cash Flow 0 −$15,700 1 6,400 2 7,700 3 4,500 4 4,100 What is the payback period?

Answers

Answer: 2.36 years

Explanation:

Payback period is the amount of time it will take to pay off the initial investment/ outlay which in this case is $15,700.

= Year before investment is paid + (Amount remaining/ Cashflow in year of Payback)

Add up the cashflows to find the year before payback;

= 6,400 + 7,700

= $14,100

Year before payback = 2

Amount remaining;

= 15,700 - 14,100

= $1,600

Payback period = 2 + (1,600/ 4,500)

= 2.36 years

The Domingos family bought a new refrigerator. How much more or less is the amount they spent than the amount they budgeted?Budgeted: $1,345.60 Spent: $1,354.66

Answers

Budget: 1,345.60$
Spent:1,355.66$
Subtract
=10.06$

Suppose a country's labor force is 153.9 million (of whom 139.1 million are employed). What is the country's unemployment rate?

Answers

Answer:

Explanation:

a) Data and Calculations:

Country's labor force = 153.9 million

Employed labor = 139.1 million

Unemployed labor = 14.8 million (153.9 - 139.1)

Unemployment rate = Unemployed labor/Country's labor force * 100

= 14.8/153.9 * 100

= 9.62%

b) This country's unemployment rate is the percentage of the total labor force that is unemployed but those unemployed people are actively seeking work.  This implies that the rate considers only the proportion of the country's labor force that is not currently employed but it could be employed when economic situations change because those involved are willing to work.  Therefore, the computation of this rate excludes those who are not actively seeking paid work.

There are some liabilities, such as income tax payable, for which the amounts must be estimated. Failure to estimate these amounts and record them would be a violation of the a.practice of consistency. b.concept of historical cost. c.convention of conservation. d.matching principle.

Answers

Answer: D. Matching principle

Explanation:

The matching principle simply states that organizations or businesses should recognize both the revenues that the company makes and their related expenses that are incurred by the company in same accounting period.

The main idea behind the matching concept is so that earnings that are made by a business will not be misstated.

22. Which of the following is correct?
a. If the central bank purchases bonds in the open market, then the money supply
shifts right and there is more currency in circulation.
b. If the central bank sells bonds in the open market, then money supply shifts right
and there is less currency in circulation.
c.
If the central bank purchases bonds, then the money supply shifts right and there
is less currency in circulation.
d.
If the central bank purchases bonds, then the money supply shifts right and there
is no change in currency circulation.

Answers

. If the central bank purchases bonds in the open market, then the money supply shifts right and there is more currency in circulation.

Any open-market operation is when the central banking authority buys and sells government securities, occasionally also commercial paper, with the goal of continuously controlling the money supply and credit conditions.

In some cases, the central bank's lending policies collide with the goal of using open-market operations to stabilize the price of government assets.

When a central bank buys securities on the open market, three things happen:

(1) commercial banks' reserves rise, allowing them to increase loans and investments;

(2) the price of government securities rises, causing interest rates on those securities to fall; and

(3) interest rates fall generally, encouraging business investment.

to know about open market operation.

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What are stakeholder capitalism and shareholder capitalism?

Answers

Stakeholder capitalism is a system in which corporations are oriented to serve the interests of all their stakeholders. ... Supporters of stakeholder capitalism believe that serving the interests of all stakeholders, as opposed to only shareholders, is essential to the long-term success and health of any business.

C Co. reported a retained earnings balance of $200,000 at December 31, 2017. In September 2018, C determined that insurance premiums of $30,000 for the three-year period beginning January 1, 2017, had been paid and fully expensed in 2017. C has a 30% income tax rate. What amount should C report as adjusted beginning retained earnings in its 2018 statement of retained earnings

Answers

Answer:

$214,000

Explanation:

The computation of the amount that report as adjusted opening retained earning is shown below:

Per year insurance premium is

= $30,000 ÷ 3 years

= $10,000

Now the beginning retained earning would be understated by

= ($30,000 - $10,000) - ($200,000 × 30%)

= $20,000 - $6,000

= $14,000

Now the amount adjusted is

= $200,000 + $14,000

= $214,000

You place $4000 into an account paying 8% compounded annually. Inflation is expected to be 2.5% during each of the next three years. What is the account's value at the end of the 3 years in Year-O (constant) dollars?
a. $2029
b. $5040
c. $5428
d. $4680

Answers

Answer:

FV= 4,680

Explanation:

Because it is in constant dollars at year 0, we need to take into account the effect of the inflation rate on the investment. The inflation rate decreases the value of money through time. Therefore we need to subtract the inflation rate from the interest rate.

Real interest rate= 0.08 - 0.025= 0.055

Now, future value using the following formula:

FV= PV*(1+i)^n

FV= 4,000*1.055^3

FV= 4,000*1.17

FV= 4,680

Studies show that OSHA employees fail to properly inspect and regulate many workplaces, primarily because they do not have __________.

Answers

Answer:

Studies show that OSHA employees fail to properly inspect and regulate many workplaces, primarily because they do not have __________.

sufficient resources.

Explanation:

OSHA means Occupational Safety and Health Act.  The law was passed in 1970 to protect workers rights to safe working environments and to promote good health of workers.  OSHA employees are expected to properly inspect and regulate all workplaces.  But lack of resources (human, material, and financial) have hindered the attainment of the objectives of the law.  The OSHA employees have also faced challenges from employers who would rather not comply with workplace safety regulations.

Assume the supply of bananas decreases due to rising costs of
production, while demand increases due to consumer preferences. What
will happen to the new equilibrium price and quantity?
A) price increases; quantity increases
B) price increases; quantity is unknown
C)price decreases; quantity decreases
D)price decreases; quantity increases
E)price is unknown; quantity increases

Answers

Answer:c option price decreases;quantity decreases

if management decides to buy the cupholders from outside suppliers rather than to continue making the part, what would be the annual financial advantage

Answers

The correct answer to this open question is the following.

Although there are no options attached, neither a case nor example for reference, we can comment on the following.

If management decides to buy the cupholders from outside suppliers rather than to continue making the part, the annual financial advantage would be that the company will save on fixed costs, the ones implied on hiring and paying people their salaries to produce the cupholders on a monthly basis. Also, the costs of machines to fabricate them.

That is why companies have to smartly decide about the so-called "make-or-buy decision." The best recommendation to make the correct decision is to apply a quantitative analysis.

Comment on the​ firm's liquidity over the 2016 ​- 2017 period. ​(Select the best answer​ below.) A. The pattern exhibits a reasonably stable trend. B. The pattern indicates that Bauman​ Company's ability to satisfy its​ short-term obligations has improved over the years. C. The pattern indicates that Bauman​ Company's speed to convert various accounts into sales or cash has improved over the years. D. The pattern indicates a deteriorating liquidity position.

Answers

The pattern of the liquidity of the firm shows that The pattern indicate deteriorating liquidity position because liquidity ratio is decreasing year by year.

What is meant by liquidity?

This is the term that has to do with the ease through which it would be able to convert assets to be come money. It could also be the ability to convert other forms of capitals to money. Cash is a liquid asset and can be said to be the most liquid of all assets.

Hence we can say that the firms liquidity from the period that we have here is indicative of deteriorating liquidity position because liquidity ratio is decreasing year by year.

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Sourcing goods and services from locations around the globe is known as __________.

Answers

Answer:

Global Sourcing

Explanation:

Global sourcing is the practice of sourcing from the global market for goods and services across geopolitical boundaries.

After Polly Shrum sells a stock, she avoids following it in the media. She is afraid that it may subsequently increase in price. What behavioral characteristic does Shrum have as the basis for her decision making?
A. Representativeness.B. Anchoring.C. Fear of regret.

Answers

Answer:

C. Fear of regret.

Explanation:

In the given situation, the fear of regret should be chosen as the investor is afraid and she regret about her decision for selling the stock in the case when the price of the stock rises

Therefore as per the given situation, the option C is correct

And, the other options are incorrect

The same is to be considered

Abby consumes only apples.

Answers

Answer: she probably loses roughly 3 to 5 lbs in a week doing this. That is if you keep the apple intake low and don't over eat on apples. I would say keep intake to under 10 apples.

Explanation:

I don't know how this is a questions but here you go anyways...... 0 w 0

Within an organizational structure, the person most likely to be evaluated in terms of controllable costs would be:

Answers

Answer:

B)A cost center manager.

Explanation:

These are the options for the question;

A payroll clerk.

B. A cost center manager.

C. A production line worker.

D. A maintenance worker.

E. A graphic designer.

A cost center managers are managers that are in charge of transactions that are charged to the center, they are responsible for the development of the

center budget of expenses as well as revenues for the coming year which is done annually. It should be noted that Within an organizational structure, the person most likely to be evaluated in terms of controllable costs would be A cost center manager.

in an essay of at least 2 well-developed paragraphs, explain how the theories of Adam Smith and john maynard keynes are seen in our present American free enterprise system

Answers

Answer:

In our present American free enterprise economic system:

Some people want to see pure capitalism being put in place.  This means that there is no government interference with the workings of the economy.  Some others, including the government, have understood that there is no perfect capitalism.  As such, they call for government intervention to ensure that economic crises are not allowed free reign.

Adam Smith, as a philosopher, vehemently advocated for a free market economy without any form of government interference.  He did not even support the imposition of taxes by the government.  John Maynard Keynes also supported a free market economy, but he advocated for some government intervention from time to time.  John Keynes stated that government must intervene during economic crises through subsidies.

Explanation:

Adam Smith elevated the economic theory of laissez-faire. He noted that the free markets needed only the invisible hand to regulate themselves by means of competition, supply and demand, and self-interest.  John Keynes advocated for increased government expenditures and lowering of taxes as two important means to stimulate market demand and pull the global economy out of depression.

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