Calculating the opportunity cost calculate opportunity cost

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Reference no: EM13927683

The panther corporation is working at full prduction capacity producing 12000 units of a unique product everlast. Manufacturing cost per unit for Everlast is

Direct materials 10

direct manufacturing labor 1

manufacturing overhead 17

total manufacturing cost 28

Manufacturing over head cost per unit is based on variable cost per unit of 8 and fixed costs of 108000 at full capacity of 12000. Marketing cost per unit, all variable is 2 and selling price is 56. A customer, the apex company has asked panther to produce 3500 units of strong last, a modification of everlast. Strong last would require the same manufacturing processes as everlast. Apex has offered to pay panter 51 for a unit of stronglast plus half of the marketing cost per unit

What is the opportunity cost to panther of producing the 3500 units of strong last?

Determine the formula for calculating the opportunity cost the calculate the opportunity cost of producing the 3500 units of stron glast

The cheasapeaks corporation has offered to produce 3500 units of everlast for panther so that panther may accept the apex offer . That is if panther accepts the chesapeaks offer, panther would manufacture 8500 units of everlast and 3500 units of strong last and purchase 3500 units of everlast from chesapeaks. Cheasapeaks would charge panther 48 per unit to manufacture everlast

On the basis of financial considerations alone , should panther accept the apex offer?

Panther is considering manufacturing 8500 units of everlast and 3500 units of stronglast and purchasing 3500 units of everlast from chesapeaks. Cheasapeake would charge panther 48 per unit to manufacture everlast. Begin by completing the following table for manufactured stronglast units and purchased everlast units.

Suppose panther had been working at less than full capacity producing 8500 units of ever last at the time the apex offer was made calculate the minimum price panther should accept for strong last under these conditions ( ignore the previous 51 selling price )

60. 1. doug Selkirk is a sales amanger for IBM He has asked his assistant to prepare ana analysis that shows what percent over or under quota each sales rep was during the last year. this is an example of

-natural accounts

-contributions margin approach

-sales analysis

-target market analysis

-performance analysis

2. capital Enterprises uses the cost- sales ratio to measure the performance of its salespeople if in the past year a salesperson made $800,000 in sales had travel expenses of $23,000 and received a base salary of $40,000 plus $6000 in commission what was this sales reps cost-sales ratio, ( rounded to the nearest whole number)

a.3

b .6

c.9

d.12

e.15

 

3. At price line webs site visors can specify the desired price they're willing ti pay for a hotel in Chicago, price line then electronically forwards the price to hotels until one accepts the offer. what pricing policy is price line using?

Reference no: EM13927683

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