6-47. 1. In order to make this assessment, Dana needs to calculate which method is cheaper. The accounting for producing the parts itself has been noted as $1,100,000, which equates to $22 per unit. The cost of the units from the other company is $20, but fixed costs will still be incurred. The fixed costs are $300,000 less the $150,000 that will be saved, so $150,000. For 50,000 units, this is $3 per unit. Thus, the total cost per unit will be $20 + $3 = $23. This is higher than it would cost Dana to produce the units itself -- in other words the savings from purchasing are not good enough to justify making the switch. Dana should produce the units itself.
2. a) if there is an additional input of $75,000, this equates to $1.50 per unit. The new calculation would be $20 + $3 -$1.50 = $21.50. Dana should now accept the offer to buy the units at $20.
b) the $100,000 contribution would be $2 per unit, so the new calculations are $20 + $3 - $2 = $21.00. Again, Dana should now accept the offer to buy the units at $20.
6-59. 1. Ignoring taxes means ignoring the impact of depreciation, which otherwise is not a cash...
Problem 12-34-1. Gross margin is calculated as gross profit / revenue. Product a Product B Product C Product D Gross Margin 12,000 / 32,000 = 37.5% 17,600 / 88,000 = 20% 56,000 / 280,000 = 20% 63,000 / 144,000 = 43.75% The product that is the most profitable is Product D. 2. The best way to start this question is to figure out the price and COGS per unit for each product. For Product a, the price was $32,000 / 2900
So for the 70,000 units completed in July: (70,000)(15 + 10.65) = $1,795,500 2. The ending works in progress is 20,000. The total cost should be (20,000)(25.65) = 513,000 Note: These figures represent the total cost of the goods, not the total cost in July of the goods. The question is worded a little bit funny so I wasn't sure which one it was intended to be. Problem 14-21. Problem 14-21 1 2 3 4 DM Inv, 2010 8 8 5 2 Purchased 5 9 10 8 Used 7 11 7 3 DM Inv,
The passenger miles would be (1,500,000 * 1.1) = 1,650,000. The revenue per passenger mile would be $0.20 -- (.08*.2) = $0.184 So the actual revenue was (.184)*(1,650,000) = $303,600. Now we can calculate Flex for Actual Level, the third column. This is based on the flex budget figures, which were $0.20 in revenue per passenger mile. Variable expenses were 195,000 / 1,500, 000 = $0.13 per passenger mile in the
Under the first scenario, the ideal price point is only the maximum profit point for children, but it not for adults. Chapter 11, p. 449, Q2. An adverse selection problem is defined in the textbook as "a situation resulting from asymmetric information in which parties may not come to an agreement on a transaction because of distrust on the part of the party with incomplete market information…" in the scenario presented,
Management Strategy to Utilize Meta-Analysis Technique for Nuclear Energy and Waste Disposal and Create Social Sustainability This research proposal explores the link between public perceptions of nuclear power, how those perceptions are formed, and what influence those opinions have on energy policy. These issues are important in light of two realities. First, nuclear energy is declining in its share of global energy. Second, nuclear energy offers what might well be
, 2005). In addition, the workload on clinicians is often increased past the point of reasonable because it is too intrusive and time consuming to document patient encounters during clinic time (Grabenbauer, Skinner, and Windle, 2011). The amount of information that can accumulate in a patient's record from multiple sources can be daunting and lead to information overload. CDS alerts can be so common that clinicians begin to ignore them.
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