Business, 27.07.2021 18:30 lazavionadams81

AudioCables, Inc., is currently manufacturing an adapter that has a variable cost of $0.75 per unit and a selling price of $1.40 per unit. Fixed costs are $14,000. Current sales volume is 30,000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $6,000. Variable costs would increase to $0.90, but sales volume should jump to 50,000 units due to a higher-quality product. Required:
a. What is the current profit and proposed profit of the sales of AudioCables?
b. Should AudioCables buy the new equipment?

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 18:20

Elon musk is the ceo of tesla motors. musk also serves as chairman of tesla's board. according to corporate governance theory, which of the following is a logical reason why musk should serve on the board? 1. he serves on many other boards, including that of a major client of tesla.2. his is an independent director who is well positioned to monitor the company's management.3. he can easily fire board members that are shirking their duties.4. he can provide the board with valuable inside information about the firm and the industry.

Answers: 1

Answer

Business, 21.06.2019 20:30

What is the difference between a public and a private corporation?

Answers: 1

Answer

Business, 22.06.2019 11:10

The prebisch–singer hypothesis concludes that: a. technology lowers the cost of manufactured products, so developing countries should see an increase in their terms of trade. b. developing countries experience a long-run decline in their terms of trade, as the demand for primary products in higher-income countries declines relative to their demand for manufactured goods. c. because of unfair trading practices, labor in developing countries is exploited. d. opec has been responsible for a slowdown in the world's standard of living.

Answers: 3

Answer

Business, 22.06.2019 12:00

In mexico, many garment or sewing shops found they could entice many young people to work for them if they offered clean, air conditioned work areas with high-quality locker rooms to clean up in after the work day. typically, traditional garment shops had to offer to get workers to apply for the hard, repetitive, and somewhat dangerous work. a. benchmark competitive wages b.compensating differentials c. monopoly wages d. wages based on human capital development of each employee

Answers: 3

Answer

You know the right answer?

AudioCables, Inc., is currently manufacturing an adapter that has a variable cost of $0.75 per unit...

Questions

Business, 01.07.2020 14:53

Consider a $400 million pass-through MBS that has just been created (so the 'seasoning' of the pass-through is equal to 0). The underlying pool of mor...