Reference no: EM131790376
Problem
The Kamloops Outdoors Corporation, which produces a highly successful line of summer lotions and insect repellents and sells them to wholesalers, has decided to diversify in order to stabilize its sales throughout the year. A natural area for the company to consider is the production of winter lotions and creams to prevent dry and chapped skin.
After considerable research, the company has developed a winter products line. However, because of the conservative nature of company management, the president has decided to introduce only one of the new products for this coming winter. If the product is a success, there will be further expansion in future years.
The product selected is a lip balm to be sold in a lipstick-type tube. The company will sell the product to wholesalers in boxes of 25 tubes for $16.00 per box. Because of available capacity, the company will incur no additional fixed charges to produce the product. However, to allocate a fair share of the company's present fixed costs to the new product, the product will absorb a $150,000 fixed charge.
Using the estimated sales and production of 100,000 boxes of lip balm as the standard volume, the accounting department has developed the following costs per box of 25 tubes:
|
Direct labour
|
$4.00
|
|
Direct materials
|
5.85
|
|
Total overhead
|
3.00
|
|
Total
|
$12.85
|
Kamloops Outdoors has approached a cosmetics manufacturer to discuss the possibility of purchasing the tubes for the new product. The purchase price of the empty tubes from the cosmetics manufacturer would be $1.90 per 25 tubes. If Kamloops Outdoors accepts the purchase proposal, it is estimated that direct labour and variable overhead costs would be reduced by 10% and direct materials costs would be reduced by 20%.
What would be the maximum purchase price acceptable to Kamloops Outdoors for the tubes?
|
Business location and remotely
: What additional measures will you take, in case some of the laptop users also need to log onto the servers both from the business location
|
|
What is the revenue in each country
: A monopolist sells in two countries and practices price discrimination by charging different prices in each country. The monopolist produces at constant.
|
|
Prepare monthly schedule of budgeted operating cash receipts
: Prepare a monthly schedule of budgeted operating cash receipts for July, August, and September - Prepare a monthly purchases budget and a schedule of budgeted
|
|
Determine the net present value of the project
: Determine the net present value of the project, Should the company purchase the machine
|
|
What would be the maximum purchase price acceptable
: The Kamloops Outdoors Corporation, which produces a highly successful. What would be the maximum purchase price acceptable to Kamloops Outdoors for the tubes?
|
|
Impact businesses and government
: You may also want to include whether your prediction will impact businesses and government, individuals (users), or both.
|
|
What does the moroccan monetary authority have
: The Moroccan monetary authority is using a heavily managed float to keep the dirham at $0.12 per dirham. Under current foreign exchange market conditions.
|
|
Business intelligence is the set of strategies
: Business Intelligence is the set of strategies, technologies, software, processes, and data used to support the collection, analysis, and dissemination
|
|
Find the area to the left of a z-score of -0.50
: Shade the appropriate region. a. Find the area to the left of a z-score of -0.50. b. Find the area to the right of a z-score of -0.50.
|