Business, 08.02.2022 22:00 tannercarr3441

A company needs to replace on old machine that is used to produce a primary product. The selling price of the product will be $219 per unit. Two different machines that could produce the product are being considered. Machine A would have an annual fixed cost of $9,500 and a variable cost per unit of $119. Machine B would have an annual fixed cost of $7,900 and a variable cost per unit of $128. a. Compute the annual break-even quantity for each machine. b. Based on annual cost, at what annual volume would the company be indifferent to purchasing Machine A or B

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 15:40, Zachary429

Brandt enterprises is considering a new project that has a cost of $1,000,000, and the cfo set up the following simple decision tree to show its three most likely scenarios. the firm could arrange with its work force and suppliers to cease operations at the end of year 1 should it choose to do so, but to obtain this abandonment option, it would have to make a payment to those parties. how much is the option to abandon worth to the firm?

Answers: 1

continue

Business, 22.06.2019 15:40, brookekolmetz

As sales exceed the break‑even point, a high contribution‑margin percentage (a) increases profits faster than does a low contribution-margin percentage (b) increases profits at the same rate as a low contribution-margin percentage (c) decreases profits at the same rate as a low contribution-margin percentage (d) increases profits slower than does a low contribution-margin percentage

Answers: 1

continue

Business, 22.06.2019 17:40, treestump090

Aproduct has a demand of 4000 units per year. ordering cost is $20, and holding cost is $4 per unit per year. the cost-minimizing solution for this product is to order: ? a. 200 units per order. b. all 4000 units at one time. c. every 20 days. d. 10 times per year. e. none of the above

Answers: 3

continue

Business, 22.06.2019 20:20, dd123984

Levine inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. direct materials (9 pounds at $1.80 per pound) $16.20 direct labor (6 hours at $14.00 per hour) $84.00 during the month of april, the company manufactures 270 units and incurs the following actual costs. direct materials purchased and used (2,500 pounds) $5,000 direct labor (1,660 hours) $22,908 compute the total, price, and quantity variances for materials and labor.

Answers: 2

continue

You know the right answer?

A company needs to replace on old machine that is used to produce a primary product. The selling pri...