Electron Control, Inc., sells voltage regulators, Managerial Economics

Assignment Help:
Electron Control, Inc., sells voltage regulators to other manufacturers, who then customize and distribute the products to quality assurance labs for their sensitive test equipment. The yearly volume of output is 15,000 units. The selling price and cost per unit are shown below:
Selling price

$200
Costs:


Direct material
$35

Direct labor
50

Variable overhead
25

Variable selling expenses
25

Fixed selling expenses
15
150
Unit profit before tax

$ 50

Management is evaluating the alternative of performing the necessary customizing to allow Electron Control to sell its output directly to Q/A labs for $275 per unit. Although no added investment is required in productive facilities, additional processing costs are estimated as:

Direct labor
$25 per unit
Variable overhead
$15 per unit
Variable selling expenses
$10 per unit
Fixed selling expenses
$100,000 per year
#

Related Discussions:- Electron Control, Inc., sells voltage regulators

Calculate the optimal lifetime incomes and firms, Dan and Ann are chemical ...

Dan and Ann are chemical engineers working for a biotech company. Each of them would like to be promoted to a managerial position, but only one of them can get the job. Their super

Kristy, Rail Tours sells packaged tours on rail lines, including gourmet me...

Rail Tours sells packaged tours on rail lines, including gourmet meals and a reserved bed. The most popular tours are in the autumn when colors are at their peak. The overnight pac

Production function with one variable input, explain production function il...

explain production function illustrate production with one variable input

Core contribution of the behavioural approach, If a firm's organisational c...

If a firm's organisational characteristics have not any implications for its behaviour or more possibly have implications that can be taken into account without adopting a behaviou

Perfectly elastic supply, Perfectly Elastic Supply Supply is said to b...

Perfectly Elastic Supply Supply is said to be perfectly or infinitely elastic if the price is fixed at all levels of demand.  The demand curve has been shown in the above diag

Law of association, the benefits of exchange in the light of the law of ass...

the benefits of exchange in the light of the law of association, the introduction of money in direct exchange and way income gets distributed among market participants

Income elasticity of demand, Aside from the price of a product and its subs...

Aside from the price of a product and its substitutes, another significant element of demand for a product is consumer's income. As noticed previously, relationship between demand

Uses of production function, The production function can have many uses. It...

The production function can have many uses. It can be used to compute least-cost factor combination for a given output or maximum output combination for a given cost. Knowledge of

Estimate the firm operating efficiently, Suppose you are an efficient exper...

Suppose you are an efficient expert hired by a manufacturing firm that uses two inputs, labor (L) and capital (K). The firm produces and sells a given output. You have the followin

Write Your Message!

Captcha
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