Reference no: EM131213199
TSP Company's market for the Model 55 has changed significantly, and TSP has had to drop the price per unit from $285 to $200. There are some units in the work in process inventory that have costs of $280 per unit associated with them. TSP could sell these units in their current state for $160 each. It will cost TSP $35 per unit to complete these units so that they can be sold for $200 each.
1. A new employee looks at the analysis and exclaims, “We'll lose money with either of these alternatives! Let's just throw these units in the trash!” Suppose the alternative to trashing is choosing the more profitable of the two alternatives (that the new employee looked at and did not like). What effect will the trashing option (that the new employee wants) have on net income?
A) Net income will increase by $35 per unit for each unit discarded.
B) Net income will decrease by $115 per unit for each unit discarded.
C) It will have no effect on net income.
D) Net income will decrease by $165 per unit for each unit discarded.
2. When the incremental revenues and expenses are analyzed, the company is better off by
A) $5 per unit if they complete the units.
B) $15 per unit if they sell the units in their current state.
C) $25 per unit if they sell the units in their current state.
D) $35 per unit if they complete the units.
|
Rate of interest to finance your college education
: You borrow money at a fixed rate of interest to finance your college education. If the rate of inflation unexpectedly slows down between the time you take out the loan and the time you begin paying back it back, is there a redistribution of income..
|
|
Demand for product x
: Assume that the demand for product X is represented by the following equation: QDX = 1000 - 10PX - 5PY + 2PZ. Which of the products Y and Z is a substitute to X in consumption?
|
|
Open-outcry descending bid auction
: The auction is an open-outcry descending bid auction in the interest rate. How does this auction design deter collusion by the bidders? Is there a better anti-collusive auction design that typically results in the municipality recovering the full ..
|
|
Find all propagating modes that can be used
: Find all propagating modes that can be used at the given wavelength. The waveguide is air filled.
|
|
Some units in the work in process inventory
: TSP Company's market for the Model 55 has changed significantly, and TSP has had to drop the price per unit from $285 to $200. There are some units in the work in process inventory that have costs of $280 per unit associated with them. When the incre..
|
|
Write a business plan which will provide direction
: MBALN707 - Entrepreneurship & SMEs - write a business plan which will provide direction and increase the probability for success of a business idea within the today contemporary and very competitive market.
|
|
What makes each of the chosen selections nonfiction
: A summary of the strategies you think the writer used to convey a particular idea. Describe how you personally relate to the theme and explain the intended purpose of each story and its theme.
|
|
Are these amplitudes acceptable in level
: Calculate the amplitudes of the electric and magnetic field intensities in the waveguide.
|
|
Explain basic principles of profit maximization
: In this assignment, you will integrate your knowledge from all three weekly outcomes. After reviewing the "From the Expert" video this week, consider the problem of the apple farmer.
|