Riverside, Inc., wants to update the finish on its window frame. It has two choices: (a) buy new equipment at a cost of 20000; (b) make major modifications at a cost of $13,000. If the firm chooses to buy new equipment, materials and labor will be $3 per frame. If it chooses to make modifications, materials and labor will be $5 per frame. If the company thinks it can sell 1500 units at a selling price of $30, which of the following option is better? (a) purchase new equipment (b) make major modifications (c) Sell 700 units after (a) purchasing new equipment and sell 800 units after (b) making major modifications (d) It does not matter which option is chosen. (e) None of these

What are six resources for you decide which type of business to start and how to start it?

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?

Problem page a medical equipment industry manufactures x-ray machines. the unit cost c (the cost in dollars to make each x-ray machine) depends on the number of machines made. if x machines are made, then the unit cost is given by the function =cx+−0.3x2126x31,935 . how many machines must be made to minimize the unit cost?