Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
A soft drink maker wants to expand into a neighboring country. They want the product bottled in that country to avoid political issues and to enhance the local image of the product. They have identified two options for the expansion. The first is to build a highly automated plant. The economies of scale would allow them to produce a can of soda for $0.04 and the distribution costs would be $0.02 per can. This facility would cost $1 million per year in fixed costs. The second option would be to build a semi-automated plant that would cost $650,000 per year in fixed costs. However, the cost to produce a can would be $0.07 and the distribution cost would be $0.04 per can.
a) Over what range of product would each plant be preferred?
b) Suppose the company believes that the demand would be approximately 6,000,000 cans per year. Suppose all costs except the variable cost (sum of the production and distribution costs) for the highly automated process are certain and can not change. What would the variable cost (the sum of the production and distribution cost) per can for the highly automated process have to be so that the soft drinker maker is indifferent between the two types of plants?
c) Now suppose each alternative has a different capacity. The total estimated demand for the year is 5,000,000 if the company sells each can for $0.32. However, only the highly automated process can produce and distribute this amount. If the semi-automated process is used, the company would only be able to produce and distribute 4,200,000 cans annually. To offset the lower volume, the company will raise the price of each can to $0.35. It will be able to sell all it produces at this price. Using all of the information presented in the problem, which process should it use? Why?
Assume that a primary care physician practice performs only physical examinations. However, there are three levels of examinations I, II, III - that vary in depth and complexity.
What is callable preferred stock? Why do corporations issue such stock? Given the different features that are associated with stock (callable, cumulative, preferred, etc.), what ty
what is the implication of applying accounting principle wrongly
Show the effect of an increase in each of the items listed below on the FCFF and FCFE. Suppose a $100 increase in every case and a 40 percent tax rate a. Net income b. Cas
Determine the Joint Cost A company produces three products, Y1, Y2, and Y3 in the similar process. The data below reflects average monthly results as:
ADescribe the impact of different types of standards on motivations, and specifically, the likely effect on motivation of adopting the labor standard recommended for Geeta & Compan
what are the features of uniform costing
Break-Even Analysis Break-even point is the volume of sales at that there is no loss or. Break-even charts graphically show the relationship of cost to profits and volume and
DEMERITS OF BREAK EVEN POINT 1. It pays no attention to considerations like effect of government policy changes, changes in the marketing environment etc 2. Fixed cost, enti
What are the journal entries to recognize each of the below events. a. The firm records bad debt expense of 5% of credit sales, which were $300. The firm uses the Percentage
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd