HomeworkDirections: Please submit your work in Word. You can submit an Excel file to supportcalculations, but please “...

Get help with any kind of assignment - from a high school essay to a PhD dissertation

  1. Order Custom Essay, Course Work, Research and Term Papers

Consider the following information, prepared based

April 14, 2018

Homework
Directions: Please submit your work in Word. You can submit an Excel file to support
calculations, but please “cut and paste” your solutions into the Word or PDF file. Be sure to
show how you did your calculations. Also, please be sure to include your name at the top of
the first page of your file.

Question #1
Consider the following information, prepared based on a monthly capacity of 70,000 units:

Category
Variable manufacturing costs
Fixed manufacturing costs
Variable selling costs
Fixed selling costs

Cost per Unit
$17
$4
$5
$3

Capacity cannot be added in the month and the firm currently sells the product for $36 per unit.
Consider each of these scenarios independent of each other.
a) The company is currently producing 60,000 units per month. A potential customer has
contacted the firm and offered to purchase 8,000 units this month only. The customer is
willing to pay $28 per unit. Since the potential customer approached the firm, there will be no
variable selling costs incurred. Should the company accept the special order? Why or why
not? Be specific.
b) Assume the same facts as in part a, except that the company is producing 70,000 units per
month. Should the company accept the special order? Why or why not? Be specific.
c) List and describe other factors (not those addressed in parts a and b) that should be taken into
consideration when deciding whether to accept a special order? Be specific in your
responses.

Question #2
Consider the following information, prepared based on monthly production and sales of 200,000
units:
Category
Variable manufacturing costs
Variable marketing costs

Cost per Unit
$15.00
$6.00

The firm has total fixed costs of $2,000,000 and currently sells the product for $48 per unit.
a) Assume the company is producing and selling 200,000 units per month. It is considering
an arrangement where an outside manufacturer would produce and ship the product
directly to customers. Under this arrangement, variable marketing costs would decrease
60% per unit and $1,100,000 in fixed costs would be avoided. What is the maximum
amount per unit the company would be willing to pay to the outside manufacturer?
b) List and describe other factors that should be taken into consideration when deciding
whether to accept this offer. Be specific in your responses.
Question #3
A consulting company performs a “basic” market analysis for a client. It incurs costs of $25,000
in performing the analysis and plans to sell the report to the client for $48,000. After reviewing
the initial report, the client asks the firm if it is willing to do a more extensive report. The client
offers to pay $75,000 for a more extensive report. If the more extensive report is done, the client
will NOT pay the $48,000. If the consulting firm estimates it will require $22,000 in additional
expenses to complete the more extensive report, should it agree to do the more extensive report?
Why or Why not? Be specific in your response.
Question #4
Assume an engineering company provides services for three types of clients. Each service
requires a different amount of a specific form of specialized labor that is in limited supply.
If the company is limited to 9,000 hours of this specialized labor, how many clients of each
type should it accept in order to maximize operating income?
Client Type

A

B

C

$1,200

$2,200

$4,500

$800

$1,400

$2,700

Specialized labor hours required per client

10

16

40

Maximum clients available

400

300

100

Revenue per client
Variable costs per client










OUR SERVICE CHARTER






  • Excellent Quality Work

    Grammar is one of the elements that we take seriously in our service delivery. Beside the use of spell checkers, we progressively take our writers through the essentials of a quality paper that features information clarity. Importantly, we encourage our writers to avoid coming up with a paper that deviates from the elements that appear on the client’s instruction brief. It means that the papers that we deliver denote well researched information that is rich in details. Additionally, the papers usually contain exhaustive details on any instruction that a client submitted. It is the tireless application of our writers’ efforts that makes us stand out when it comes to the delivery of excellent quality work. Notably, our writers use quality resources when digging up information that a paper requires. They are usually aware of the sources that contain rich information. Our past clients have proved that we give nothing short of quality work through giving us a positive feedback.

  • Professional Academic Writers

    An academic degree is one of the qualifications that our writers hold. This is only a minimum requirement that we ask from our writers, but the team also has writers who possess higher educational credentials. It means that the team comprises of competent writers who have gone through institutions of higher learning and passed their exams. Subsequently, the writers have a good grasp of what our clients require. It is notable that our writers not only want to apply their acquired knowledge, but they are also willing to help our clients to outperform them. This is a clear indication of a team that is willing to walk an extra mile. We uphold professionalism in our operations, and our clients should look forward to receive services from a team of experts. It is the spirit of value addition that makes us to scale any heights in order to deliver and outperform our clients’ expectations.

  • 100% Confidentiality

    We mind about the interests of our clients holistically. It is for this reason that we maintain high-level confidentiality in regard to our clients’ personal information. Importantly, we use the information for purposes that relate with our services only. The only information that we require relates to our clients’ writing needs. It is also important to note that our clients’ payment information is secure with us. If there is any query in regard to the payment information, then our support team is always willing to provide any clarifications in a prompt manner. Confidentiality extends to the fact that a client made use of our services. It means that we hold our relationship with our clients in secrecy. Importantly, our confidentiality measures beat any advanced security measure that can identify any information regarding our relationship with our clients. It means that our clients transact with us freely without any fear of information leakage.

  • Free Revisions

    The papers that we deliver usually reflect a high quality level. However, there is always a room for any additional fine-tuning touch in line with a client’s preference without any additional charges. To begin with, a client has discretion to make a choice on their preferred top writer from our team. Such a writer could have handled past work for the client and received a positive review from the same. It means that the client has confidence of the quality of service that the writer delivers. Secondly, a client has an option of making use of our editing services. Our editors are always on standby to revise the paper and ensure that it matches with the expectations of a client that the instruction brief had detailed. The revision covers content adjustment that removes off-topic details, addition of sources, removal of language style errors, and assessment of the referencing style in order to enhance compliance.




Related Questions