Business, 01.07.2019 19:20 PatienceJoy

Hahn manufacturing has been purchasing a key component of one of its products from a local supplier. the current purchase price is $1450 per unit. efforts to standardize parts have succeeded to the point that this same component can now be used in five different products. annual component usage should increase from 150 to 750 units. management wonders whether it is time to make the component in-house, rather than to continue buying it from the supplier. fixed costs would increase by about $42,000 per year for the new equipment and tooling needed. the cost of raw materials and variable overhead would be about $1120 per unit, and labor costs would go up by another $320 per unit produced. what is the quantity where the costs of both the make and buy options are the same?

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 10:30

You meet that special person and get married. amazingly your spouse has exactly the same income you do 47,810. if your tax status is now married filing jointly what is your tax liability

Answers: 2

Answer

Business, 22.06.2019 19:30

Consider the following two projects. both have costs of $5,000 in year 1. project 1 provides benefits of $2,000 in each of the first four years only. the second provides benefits of $2,000 for each of years 6 to 10 only. compute the net benefits using a discount rate of 6 percent. repeat using a discount rate of 12 percent. what can you conclude from this exercise?

Answers: 3

Answer

Business, 22.06.2019 19:50

The common stock and debt of northern sludge are valued at $65 million and $35 million, respectively. investors currently require a return of 15.9% on the common stock and a return of 7.8% on the debt. if northern sludge issues an additional $14 million of common stock and uses this money to retire debt, what happens to the expected return on the stock? assume that the change in capital structure does not affect the interest rate on northern’s debt and that there are no taxes.

Answers: 2

Answer

Business, 22.06.2019 20:10

With signals from no-claim bonuses and deductibles, a. the marginal cost curve for careful drivers lies to the left of the marginal cost curve for aggressive drivers b. auto insurance companies insure more aggressive drivers than careful drivers because aggressive drivers have a greater need for the insurance c. the market for car insurance has a separating equilibrium, and the market is efficient d. most drivers pay higher premiums than if the market had no signals

Answers: 1

Answer

You know the right answer?

Hahn manufacturing has been purchasing a key component of one of its products from a local supplier....

Questions