Reference no: EM131216107
Stanco Inc. has two divisions, Electronics and Clocks. The Electronics Division (which is operating at capacity) , makes a specialized circuit borad called SA5 which it sells to its regular customers for $14 each. SA5 has a variable production cost of $8.25 per unit and a fixed production cost of $1.50 per unit. The clocks division developed a new product for which it needs to use SA5 as a component part. The cost of the Clock Division's new product follows :
SA5 circuit board (desired cost) : $9.00
Other purchased Parts (from outside vendors) : $30.00
Other Variable Costs : $20.75
Allocated Fixed Overhead and Admin Costs : $10.00
Total Cost Per Timing Device : $69.75
The manager of the Clock Division feels that to successfully market the new product she can't quote a price greater than $70 per unit. To keep the price at $70 or less, she can't pay more than $9 per unit to the Electronics Division for each unit of SA5.
Question : Suppose the total demand for the new product is expected to reach 10,000 units. If the Electronics Division agrees to transfer the needed SA5's at $9 per unit for the sales of the new product at $70 per unit, how much will the whole company's profitability increase or decrease?
A) Decrease by $35,000 B) Increase by $67,500 C) Increase by $52,500 D) Decrease by $7,500 E) None
Which term students believe to be most appropriate
: Each student will explore, develop and express in a two to three-page paper, their own thoughts and philosophy in regard to which term they believe to be most appropriate in the practice of Occupational Health and Safety.
|
What is meant by remoteness of damage
: What needs to be established by a plaintiff in order to succeed in an action against an occupier for injuries received on the premises of the occupier? In the tort of negligence, how is it ascertained whether a breach of duty has occurred? In the tor..
|
Can a collaboration of educations exist
: Can a collaboration of educations exist? If so, how? If the decision is made to increase focus, funding, and new hiring for professional and technical fields will this decrease morale for the staff who teach liberal arts?
|
Examine the spectra of the modulated signals
: Develop the demodulation circuit corresponding to Illustration 154. Rectification should be shown by the „absolute value" process (module "arithmetics"), the RC circuit by lowpass filtering. See also Illustration 155
|
How much will whole company profitability increase-decrease
: Stanco Inc. has two divisions, Electronics and Clocks. The Electronics Division (which is operating at capacity) , makes a specialized circuit borad called SA5 which it sells to its regular customers for $14 each. Suppose the total demand for the new..
|
Draw a graph of composite profile and find junction depth
: Draw a graph of the composite profile and find the junction depth(s) if the phosphorus background concentration is 10 1 6 /cm3.
|
What is the calculated twa
: What is the calculated TWA? What would you tell plant management in terms of exposure to acetone and compliance with the PEL?
|
Determine the effects of executives proposed changes
: Ralph Industries is experiencing lower than expected sales. The company’s executives agreed that in order to make up some of the lost revenue’s impact on the bottom line, expenses must be lower. Determine whether the proposed change in assets’ useful..
|
Develop an am generator by means of the module
: Develop an AM generator by means of the module "formula interpreter" which implements the AM formula given on page 236 and with which the degree of modulation m, fLF and fcarrier can be set. Select ÛLF = 1 V
|