A company has the choice of either selling 600 defective units as scrap or rebuilding them. the company could sell the defective units as they are for $2.00 per unit. alternatively, it could rebuild them with incremental costs of $0.60 per unit for materials, $1.00 per unit for labor, and $0.80 per unit for overhead, and then sell the rebuilt units for $5.00 each. what is the amount of incremental revenue from rebuilding?

Answers

Answer 1
Answer:

Answer: Incremental revenue =360

Given:

N=600 (number of defective units)

P1=$2 (price if not rebuilt)

P2=$5 (price after rebuilt

X=.60+1.0+.80=2.4 (incremental costs)

R1=600(2)=1200

R2=600(5)-600(2.4)

R2=3000-1440

R2=1560

Incremental revenue is computed as:

R2-R1

1560-1200

360


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The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction. Rina spends all of her money on comic books and beignets. In 2011 she earned $14.00 per hour, the price of a comic book was $7.00, and the price of a beignet was $2.00. Which of the following give the nominal value of a variable? Check all that apply. __ Rina's wage is 2 comic books per hour in 2011. __The price of a beignet is $2.00 in 2011. __ Rina's wage is $14.00 per hour in 2011. Which of the following give the real value of a variable? Check all that apply. __Rina's wage is $14.00 per hour in 2011. __The price of a comic book is 3.5 beignets in 2011. __Rina's wage is 7 beignets per hour in 2011. Suppose that the Fed sharply increases the money supply between 2011 and 2016. In 2016, Rina's wage has risen to $28.00 per hour. The price of a comic book is $14.00 and the price of a beignet is $4.00. In 2016, the relative price of a comic book is ( 0.29 beignets, 3.5 beignets, $4.00, $14.00) Between 2011 and 2016, the nominal value of Rina's wage (decreases, increases, remains the same) and the real value of her wage(decreases,increases,remains the same) . Monetary neutrality is the proposition that a change in the money supply (does not affect, affect) nominal variables and ( does not affect, affect) real variables.
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Assume the total cost of a college education will be $200,000 when your child enters college in 16 years. You presently have $73,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child’s college education?

Regulatory focus theory suggests that consumers will react differently depending on which broad set of motives is more salient. Name and describe the two prominent sets of motives and describe how consumers will react when each set of motives is more noticeable. Use a specific product or service to explain your answer.

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Two prominent sets of motives under regulatory focus theory are termed Promotion and prevention.

What is regulatory focus theory?

According to the regulatory focus hypothesis, people can work toward objectives with either a promotion or a preventive emphasis. People who aim for advancement interpret pleasure as the accomplishment of their aims, ambitions, and aspirations, and interpret suffering as their absence.

Motives assume that emotional trade-offs between both the coexisting motivational systems on promotion and prevention will always happen. Promotion-oriented people are opportunistic and look for real experiences as motivation to develop action-oriented objectives, which are necessary to getting outcomes.

People who have a prevention orientation are extremely optimistic and see keeping things as they are and preventing bad things from happening as their defining and overriding motives.

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i don’t exactly know

In the EOQ model, the average inventory per cycle over many cycles is Q/2. A. True B. False

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Answer:

A. True

Explanation:

An organization would usually measure the volume of its orders in order to meet up with demand while also making sure that the cost per order is maintained at the nearest minimum. The tool used to measure the volume of frequent orders is Economic order quantity(EOQ) .

When inventories are ordered, there will be continuous movement of inventory say from Q(order amount) to zero. This means that the average inventory is Q ÷ 2. Also, the inventory costs for each period is the same as average cost(Q/2) multiply by length of the period.

Maintenance money for an athletic complex has been sought. Mr. Kendall, the Athletic Director, would like to solicit a donation to cover all future expected maintenance costs for the building. These maintenance costs are expected to be $1 million each year for the first five years, $1.3 million each year for years 6 through 10, and $1.5 million each year after that. (The building has an indefinite service life.)If the money is placed in the account that will pay 5% interest compounded annually, how large should the gift be?

Answers

Answer:

Total donation= $76,000,000

Explanation:

Giving the following information:

These maintenance costs are expected to be $1 million each year for the first five years, $1.3 million each year for years 6 through 10, and $1.5 million each year after that. The money is placed in the account that will pay a 5% interest compounded annually.

First, we need to calculate the final value of the donation:

We have 3 perpetual annuities.

FV= 1,000,000/0.05= 20,000,000

FV= 1,300,000/0.05=26,000,000

FV= 1,5000,000/0.05= 30,000,000

Total donation= $76,000,000

Final answer:

The amount of donation Mr. Kendall should solicit to cover all future expected maintenance costs for the athletic complex is approximately $58.81 million, based on the principle of Time Value of Money.

Explanation:

This problem is related to the concept of the Time Value of Money, which is a fundamental principle in finance. According to this principle, the value of money you have now is greater than the same amount in the future due to its potential earning capacity. It can be solved using the formula for the present value of a perpetuity.

In the first five years, Mr. Kendall needs $1 million per year, thus, the present value (PV) of these costs could be calculated by $1 million / 0.05 = $20 million. For years 6 through 10, he needs $1.3 million per year, however, since these costs will occur in the future, they should be discounted back to the present. Hence, the PV would be $1.3 million / 0.05 = $26 million, then discounted back for five years, which is $26 million / (1.05)^5 = $20.43 million. For any year after the 10th year, he needs $1.5 million per year, this is a perpetuity that will start in year 11, so, its PV would be $1.5 million / 0.05 = $30 million, then discounted back for ten years, which is $30 million / (1.05)^10 = $18.38 million. Finally, to cover all the expected maintenance costs, the donation should be the sum of these PVs, which is $20 million + $20.43 million + $18.38 million = $58.81 million.

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Suppose that just by doubling the amount of output that it produces each year, a firm s per-unit production costs fall by 30 percent. This is an example of: a. technological advance. b. the demand factor. c. economies of scale. d. improved resource allocation.

Answers

Answer:

The Correct Option is "Economies of scale"

Explanation:

Economies of scale:  

Economies of scale explain the reduction in per unit production costs caused by expansion of production. If a economy doubles its output each year causes the production costs to reduce by 30 percent, then it is an example of economies of scale.  

Answer: Economies of scale.

Explanation:

Economies of scale is the saving in costs that is gained as a result of an increase in production level. It is the cost advantage that an organization experiences due to its increase in the level of output. The benefit occurs as a result of the inverse relationship that exists between quantity produced and per-unit fixed cost. The higher the quantity of output that is produced, the smaller the per unit fixed cost.

 Economies of scale also brings about a reduction in the average variable costs when output increases. This is due to operational efficiencies which occurs as the scale of production increases. When the output is doubled, the reduction in costs by thirty percent is an example of economies of scale.

Matt and Claire go into an interview for the same position and they get asked very different questions depending on how the interview is going. This type of interview is called:_____.

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Matt and Claire go into an interview for the same position.This type of interview is called Unstructured interview.

What is the term Unstructured Interview about?

Unstructured interview is defined as one in which the questions asked are not prearranged. Rather they are spontaneous and questions to be asked are formulated during the course of the interview.

On the other structured interview is when questions are prearranged and candidates are asked the same questions.

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Answer:

Unstructured interview

Explanation:

Unstructured interview is defined as one in which the questions asked are not prearranged. Rather they are spontaneous and questions to be asked are formulated during the course of the interview.

On the other structured interview is when questions are prearranged and candidates are asked the same questions.

So when Matt and Claire go into an interview for the same position and they get asked very different questions depending on how the interview is going, they are answering unstructured interview questions.

Resources are distributed unevenly throughout the world. This fact MOST relates to the reasons for A.profit seeking.
B.free enterprise.
C.international trade.
D.business competition.

Answers

Answer:

C.international trade

Explanation:

In business, resources are tangible materials used in the production process. Natural resources are valuable materials found beneath,  above, or on the earth's surface. These materials are naturally occurring and are distributed unevenly across the globe. They include Minerals, forests, fertile lands, water, oil and gas, plants, and animals.

Some resources, such as minerals and water, become raw materials, while others, such as land, facilitate the production process. Because resources are unevenly distributed, regions with plenty can use them to produce goods and services and sell to areas with scarcity. No single region has the resources it requires. International trade makes it possible for regions to sell what they have in plenty and buy what they luck.

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