subject
Business, 19.09.2019 16:20 Slytherinsarethebest

Alast-mile delivery service is looking into increasing capacity by purchasing new delivery vans. two vans are being considered. van a costs $50,000 with a variable cost of $12.00 per average delivery, all inclusive of gasoline insurance, etc. van b costs $70,000 with a variable cost of $11.00 per average delivery. the company is also considering a courier service which requires a $60,000 non-refundable joiner fee and a variable cost of $13.00 per average delivery. last but not least the company is also considering a new drone delivery option that requires an investment in infrastructure of $100,000 and a delivery cost of $15.00 per delivery, but costs are expected to drop sharply in the foreseeable future. a. what of the following is not true? select in the long run, option b with its $11.00 variable cost is the best option the drone option should be chosen because it is the least expensive in terms of both fixed and variable cost. option a requires the smallest initial cash outlay, followed by using the courier service, followed by option b. there is no point of indifference/break even between option a and using the courier service b. volumes above. select ] is preferred at volumes below while is preferred at b and 30,000, a and 20,000 b and 5,000, c and 5,000 c is always preferred to a at every volume a and 20,000, b and 20,000 c. if the average sales revenue generated by the delivery service $15.00 per delivery, but customers are willing to pay $20.00 for the novelty of drone delivery, what is the breakeven in units for each option? select ] 16,667 for option a and 20,000 for drone option option a and drone delivery do not crossover 20,000 for option a and 16,667 for drone option option a is always better than drone delivery

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 09:40
Newton industries is considering a project and has developed the following estimates: unit sales = 4,800, price per unit = $67, variable cost per unit = $42, annual fixed costs = $11,900. the depreciation is $14,700 a year and the tax rate is 34 percent. what effect would an increase of $1 in the selling price have on the operating cash flow?
Answers: 2
question
Business, 22.06.2019 22:30
Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. in this case, the country that produces jeans will produce million pairs per week, and the country that produces corn will produce million bushels per week.
Answers: 1
question
Business, 23.06.2019 06:40
Acollege career counselor working at a community college is part of what career area? a. administration b. professional support services c. teaching and training d. guidance counseling
Answers: 2
question
Business, 23.06.2019 07:50
Your company is starting a new r& d initiative: a development of a new drug that dramatically reduces the addiction to smoking. the expert team estimates the probability of developing the drug succesfully at 60% and a chance of losing the investment of 40%. if the project is successful, your company would earn profits (after deducting the investment) of 9,000 (thousand usd). if the development is unsuccessful, the whole investment will be lost -1,000 (thousand usd). your company's risk preference is given by the expected utility function: u(x) v1000 +x, where x is the monetary outcome of a project. calculate the expected profit of the project . calculate the expected utility of the project . find the certainty equivalent of this r& d initiative . find the risk premium of this r& d initiative e is the company risk-averse, risk-loving or risk-neutral? why do you think so?
Answers: 3
You know the right answer?
Alast-mile delivery service is looking into increasing capacity by purchasing new delivery vans. two...
Questions
question
Mathematics, 11.11.2020 22:10
question
Mathematics, 11.11.2020 22:10
question
Mathematics, 11.11.2020 22:10
question
Mathematics, 11.11.2020 22:10
Questions on the website: 13722363