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

State about production theory, State about Production theory Production...

State about Production theory Production theory assists in determining the size of firm and level of production. It clarifies the relationship between marginal and average cost

Central bank functions-controller of credit, Controller of Credit The p...

Controller of Credit The principles of credit control by the central bank were discovered and enunciated after the publication of Bagehot Lombard street in 1873. Even after 187

Explain about delphi method, Q. Explain about Delphi method? Delphi me...

Q. Explain about Delphi method? Delphi method: This is a systematic, interactive forecasting method that depends on a panel of experts. Experts answer questionnaires in two o

Explain about smooth convex isoquant, Q. Explain about Smooth Convex Isoqua...

Q. Explain about Smooth Convex Isoquant? Smooth Convex Isoquant: This kind of isoquant presumes continuous substitutability of capital and labour over a certain range, beyond

PRINCIPLES, WHAT ARE THE PRINCIPLES OF MANGERIAL ECONOMICS

WHAT ARE THE PRINCIPLES OF MANGERIAL ECONOMICS

Increase in demand - effect on equilibrium price, Increase in demand ...

Increase in demand SS is the supply curve and D 1 D 1 the initial demand curve shifts to the right, to position D 2 D 2 .  P 1 is the initial equilibrium price and q 1

The individual and market demand curves, The individual and market demand c...

The individual and market demand curves The quantities and prices in the demand schedule can be plotted on a graph. Such a graph after the individual demand schedule is called

What is an effective need of demand, What is an effective need of demand ...

What is an effective need of demand 1.  An Effective Need: Effective need demands that there must be a need supported by the capacity and readiness to shell out. Henceforth there

Phillips curve, PHILLIPS CURVE   The Phillips  curve,  named  after  A....

PHILLIPS CURVE   The Phillips  curve,  named  after  A.  W.  Phillips,  describes  the  relationship between unemployment  and  inflation. In  1958  Phillips, then  professor a

Construction of the causal model - regression analysis, Q. Construction of ...

Q. Construction of the causal model - regression analysis? The construction of an explanatory model is a crucial step in the regression analysis. It should be defined with refe

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