Business, 19.10.2019 12:20 LaughterLies
Downhill boards (db), a producer of snow boards, is evaluating a new process for applying the finish to its snow boards. durable finish company (dfc) has offered to apply the finish for $170,000 in fixed costs and a unit variable cost of $0.65. downhill boards currently incurs a fixed annual cost of $125,000 and has a variable cost of $0.90 per unit. annual demand for the snow boards is 160,000.
a. calculate the annual cost of the current process used at downhill boards.
b. calculate the annual cost if durable finish company applies the finish.
c. find the indifference point for these two alternatives.
d. how much of a change in demand is needed to justify outsourcing the process?
Answers: 3
Business, 21.06.2019 19:20
You manage an equity fund with an expected risk premium of 10% and a standard deviation of 14%. the rate on treasury bills is 6%. your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in a t-bill money market fund. what is the expected return and standard deviation of return on your client’s portfolio?
Answers: 1
Business, 21.06.2019 23:10
Kando company incurs a $9 per unit cost for product a, which it currently manufactures and sells for $13.50 per unit. instead of manufacturing and selling this product, the company can purchase product b for $5 per unit and sell it for $12 per unit. if it does so, unit sales would remain unchanged and $5 of the $9 per unit costs assigned to product a would be eliminated. 1. prepare incremental cost analysis. should the company continue to manufacture product a or purchase product b for resale? (round your answers to 2 decimal places.)
Answers: 1
Business, 22.06.2019 01:40
Costs of production that do not change when output changes.question 17 options: total revenuefixed incometotal costfixed cost
Answers: 1
Downhill boards (db), a producer of snow boards, is evaluating a new process for applying the finish...
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