A company is considering the following alternatives: Alternative 1 Alternative 2 Revenues $170000 $170000 Variable costs 62000 72000 Fixed costs 30000 30000
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A company is considering the following alternatives:
Alternative 1 | Alternative 2 | |
Revenues | $170000 | $170000 |
Variable costs | 62000 | 72000 |
Fixed costs | 30000 | 30000 |
Which of the following are relevant in choosing between the alternatives?
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- Calculate the profitability of the following proposal using Average rate return (ARR) methodProposal IAutomatic machine Cost OMR 320000Estimated life4.5 yearsEstimated sales P.A 220000Cost : Material OMR 60000 Labour OMR 22000 Variable overheads OMR14000 a.16.53% b.3.19% c.4.62% d.All the options are wrongQ1) One of the industrial investors needed an analysis that would lead him to a break-even level between the following inputs and outputs: Fixed Cost = 180079 $ , Variable Costs =475, Revenue of saling prices per unit (204 $ ) Y of Products 890 ‘599‘ 917‘ eu‘ 955[ 975‘ sas[ 1,u7‘ 1,159' 1,193‘ 1,209‘ 1,255‘ Require A) Find all lines of anlysis . B) How the produaction reach to B.E.P. C) Based on the available information, show the level of variation from line of production to other annually.Calculate the profitability of the following proposal using Average rate of return (ARR) methodProposal I Automatic machine Cost OMR 420000Estimated life 6.5 yearsEstimated sales P.A OMR 175000Cost : Material OMR 60000Labour OMR 22000Variable overheads OMR 14000 a. 16.53% b. All the options are wrong c. 3.42% d. 4.62%
- Problem Solving.Determine for what is asked. Show your solution legibly. Improper solution will not be credited. Consider the following cost and pricing data of ABC Corp. on its Product X:Price: P120.00.per unitProfit Contribution: P90.00 Proposed additional Cost: P3 per unit (for quality improvement)Current Profits: P2.4 millionSales: 100,000 units. A. Assuming that average variable costs are constant at all output levels, find ABC Corp.’s total cost function before the proposed change.B. Calculate the total cost function if the quality improvement is implemented.C. Calculate ABC Corp.’s break-even output before and after the change, assuming it cannot increase its price.D. Calculate the increase in sales that would be necessary with the quality improvement to increase profits to P2.7 million17-Assume that in one of the written test of your interview, the following question has been asked. If the breakeven point OMR 40,000, Profit OMR 2000 and fixed cost OMR 8000.What will be the amount of variable cost? Being the interviewee how will you answer this question ? a. OMR 32000 b. OMR42000 c. OMR 50000 d. OMR 40000What is 20% markup price of a product having variable cost 20, fixed cost 300000 expected unit cost 50000 and unit cost 16 Kindly solve this question in easy ways with proper formula so I can understand easily
- Consider the following cost and pricing data of ABC Corp. on its Product X:Price: P120.00.per unitProfit Contribution: P90.00Proposed additional Cost: P3 per unit (for quality improvement)Current Profits: P2.4 millionSales: 100,000 units. A. Assuming that average variable costs are constant at all output levels, findABC Corp.’s total cost function before the proposed change.B. Calculate the total cost function if the quality improvement is implemented. UNANSWERED SUB-PARTSC. Calculate ABC Corp.’s break-even output before and after the change, assuming it cannot increase its price.D. Calculate the increase in sales that would be necessary with the quality improvement to increase profits to P2.7 millionIn the equation y = $7.20x + $250,250, Question 37 options: $250,250 are the total variable costs. $250,250 are the total costs. $250,250 are the total overhead costs. $250,250 are the total fixed costs.If the cost for unit 100 in a unit theory learning curve scenario is $7.5M (FY15$), and the learning curve is 85.5%, what cost would you expect unit #400 to be? (disregard inflation) Show your work! (Hint: There is an easy way and a harder way to do this!) What cost would you expect unit #650 to be? (disregard inflation). (Yes, this should be done differently!)
- In the equation y = $11.75x + $550, "x" represents Question 28 options: number of units produced. total fixed costs. total costs. None of these.You are an industry analyst that specializes in an industry where the market inverse demand is P = 100 - 2Q. The external marginal cost of producing the product is MCExternal = 8Q, and the internal cost is MCInternal = 18Q.Instructions: Enter your responses rounded to the nearest two decimal places.a. What is the socially efficient level of output? unitsb. Given these costs and market demand, how much output would a competitive industry produce? unitsc. Given these costs and market demand, how much output would a monopolist produce? unitsd. Which of the following are actions the government could take to induce firms in this industry to produce the socially efficient level of output.Instructions: For correct answers place a check mark. check all that apply Nonrival consumptionunanswered Pollution taxesunanswered Pollution permitsunansweredUsing your answer to Requirement 1, assume that Reshier Company is considering dropping any model with a negative product margin. What are the alternatives? Which alternative is more cost effective and by how much? (Assume that any traceable fixed costs can be avoided.) Do NOT round interim calculations and, if required, round your answer to the nearest dollar. will add $fill in the blank 8723bbfe4004028_3 to operating income 3. What if Reshier Company can only avoid 182 hours of engineering time and 4,800 hours of setup time that are attributable to Model 1? How does that affect the alternatives presented in Requirement 2? Which alternative is more cost effective and by how much? Do NOT round interim calculations and, if required, round your answer to the nearest dollar. will add $fill in the blank 8723bbfe4004028_5 to operating income