Why should the manager accept the order

Assignment Help Managerial Economics
Reference no: EM13241320

The California Instruments Corporation, a producer of electronic equipment, makes pocket calculators in a plant that is run autonomously.The California Instruments Corporation, a producer of electronic equipment, makes pocket calculators in a plant that is run autonomously. The plant has a capacity output of 200,000 calculators per year, and the plant's manager regards 75 percent of capacity as the normal or standard output. The projected total variable costs for the normal or standard level of output are $900,000, while the total overhead or fixed costs are estimated to be 120 percents of total variable costs. The plant manager wants to apply a 20 percent markup on cost.

If during the year the plant manager receives an order for an additional 20,000 of its calculators from a school system to be delivered in four months for the price of $10, should the manager accept the order?

Reference no: EM13241320

Questions Cloud

How would one determine which combination of variables : How would one determine which combination of variables is the best (with statistical significance)? If that's not possible, can we show that one combination is statistically significantly worse than the others? What method would be used?
Relationship exists between field size and number of seats : Before you run your scatter diagram answer the following: What do you think you will find? Bigger fields have more seats? Smaller fields have more seats? No relationship exists between field size and number of seats? A strong relationship exists betw..
Find the difference ma - mb in the masses of these planets : The mass of a robot is 5220 kg. This robot weighs 2650 N more on planet A than it does on planet B. Both planets have the same radius of 2.26 × 107 m
The company will be using samples of 100 bags : A company is filling bags of rock salt to a level of 50 pounds. It believes that all bags are filled correctly, but would like to use a hypothesis test with an alpha of 0.05 to check this belief.
Why should the manager accept the order : The California Instruments Corporation, a producer of electronic equipment, makes pocket calculators in a plant that is run autonomously.The California Instruments Corporation, a producer of electronic equipment
Compute the molarity of a solution by diluting : calculate the molarity of a solution prepared by diluting 1.20 x 10^2 ml of 2.725 solution to 125.0 ml
Find the probability that they have a mean pregnancy between : The lengths of pregnancies are normally distributed with a mean of 264 days and a standard deviation of 25 days. If 100 women are randomly selected, find the probability that they have a mean pregnancy between 264 days and 266 days.
Find the magnitude of net force acting on the soccer ball : At an instant when a soccer ball is in contact with the foot of the player kicking it, the horizontal or x component of the ball's acceleration is 940 m/s2 What is the magnitude of the net force acting on the soccer ball at this instant
By how much may the deposit expand the total money supply : If Martha finds $10,000 under her mattress and deposits it in a demand deposit, by how much may the deposit expand the total money supply Assume that the legal reserve requirement (required reserves ratio) is 20%.

Reviews

Write a Review

Managerial Economics Questions & Answers

  Management decision

Determine what will the sustainability movement look like over next twenty years? What issues do you expect to take center stage? How will business respond?

  Fit possible statistical cost functions to the data

Fit three possible statistical cost functions to the data. Use straight- line, quadratic, and cubic formulas and discuss statistical results. Include in your discussion R2, the coefficients, and the statistical significance of the coefficients.

  Calculate the firm total costs

The company currently uses seventy workers to produce 300 units of output per day. The daily wage is $100, and the price of the company's output is $30.

  Question about reserve prices and extended warranties

A reserve value is a minimum value set by the auctioneer. If no bidder is willing to pay the reserve price, the item is unsold at a profit of $0 for the auctioneer.

  Compute expected dollar return

Assume that a person won Florida lottery and was offered a choice of 2-prizes: $500,000 or a coin-toss gamble in which he or she would get $1 million.

  Estimate the company cost of capital

The total market rate of common stock of the Okefenokee Real Estate Firm is $6 million, and the total value of its debt is 4 million dollar.

  Determine the unlevered beta

SBC Corporation Has capital structure of 30 percent debt and 70 percent equity. The firm current Beta is 1.25, but management wishes to understand SBC market risk without effect of leverage.

  Calculating the value of a share of common stock

A company has an expected dividend next year of $1.20 a share, a 4% growth rate of dividends, and a required return of 10%. The value of a share of the firm's common stock is

  Explain whether the firm will make economic profit

Explain whether the firm will make economic profit, In the short run and In the long run.

  Discuss a few tactics that managers can use to overcome

points out that asymmetric information can have deleterious effects on market outcomes. a. Explain how asymmetric information about a hidden action or a hidden characteristic can lead to moral hazard or adverse selection.

  Manager compensation plan in car dealership

Two months before, the landlord of a car dealership significantly changed his sales manager's compensation plan. Under the old plan, the manager was paid a salary of $6000 every month

  Calculate firm profit

Suppose you are the manager of a company that produces products X and Y at zero cost. You know that different types of consumers value your two products differently,

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd