Question #1Consider the following information, prepared based on a monthly capacity of 500,000 units:CategoryCost per Un...

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 on a monthly

April 14, 2018

Question #1

Consider the following information, prepared based on a monthly capacity of 500,000 units:

Category

Cost per Unit

Variable manufacturing costs

$21

Fixed manufacturing costs

$4

Variable selling costs

$5

Fixed selling costs

$3

Capacity cannot be added in the short run and the firm currently sells the product for $43 per unit.

The company is currently producing 440,000 units per month. A potential customer has contacted the firm and offered to purchase 50,000 units this month only. The customer is willing to pay $36 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 500,000 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 100,000 units:

Category

Cost per Unit

Variable manufacturing costs

$45.00

Variable marketing costs

$12.00

The firm has total fixed costs of $3,000,000 and currently sells the product for $120 per unit.

Assume the company is producing and selling 100,000 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 70% per unit and $2,100,000 in fixed costs would be avoided. What is the maximum amount per unit the company would be willing to pay to the outside manufacturer?

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 $100,000 in performing the analysis and plans to sell the report to the client for $250,000. 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 $450,000 for a more extensive report. If the more extensive report is done, the client will NOT pay the $250,000. If the consulting firm estimates it will require $210,000 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 12,000 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

Revenue per client

$1,700

$3,800

$5,300

Variable costs per client

$800

$1,400

$2,700

Specialized labor hours required per client

6

15

20

Maximum clients available

800

600

200










OUR SERVICE CHARTER






  • Money Back Guarantee

    If any of our writers deliver an incomplete or ambiguous paper that is off the topic, our clients can claim for a refund in regard to the oversight. We do not compromise our service delivery through submission of a paper that does not follow our clients’ instructions. We also mind about the interest of our customers, and we always give them value for their money. However, our clients have a choice to request for a free revision within 14-30 days, or depending on the length of the submitted paper. A client who needs a refund should send a request for it within 14 days after receiving the completed paper. If a client decides not to download the paper, then they can request for 100% refund. Any refunded amount usually goes to the client’s Bonus Balance as store credit. There is always extra compensation when the refund takes the form of store credit. Alternatively, the refunded amount can also go the client’s credit card.

  • Better Grades Guarantee

    Our team of writers prides in high-level competence. The writers have the required expertise that enables them to deliver quality papers that match with the requirements of the grading rubric. In the absence of the rubric, we ensure that the writers follow the clients’ instruction brief to the letter. We can confidently assure our clients to expect nothing short of a pass from the papers that we deliver. Importantly, we have qualified writers who handle different areas of study. This diversification enables us to allot clients’ orders to the writer who is well seasoned in the subject area of study. It also enables the team to become more professional due to specialization. Our clients should put their trust in our service delivery and expect to successfully attain high grades at all times. The fact that we offer free revision reflects our dedication in delivering high quality papers that match with our clients’ expectations.

  • 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% Plagiarism-Free Guarantee

    We deliver top-quality essays through employing various measures that seek to improve the content of a given assignment. One of the quality-control systems that we use entails plagiarism checkers. These systems help us to deliver a 100% plagiarism-free papers to our clients. We also value the originality of papers, and we do not resell any submitted paper. It means that every client always gets a unique paper. Additionally, our perfect team of writers is usually keen on the academic writing standards as well as the instructions brief that a client submits. Our team of writers holds matchless competence when it comes to its service delivery. Every member of the team usually has an academic degree, and the team’s diversified skills make it possible for us to have a qualified writer in any client’s area of study. Additionally, our past clients have always given a positive feedback on each of our writers.




Related Questions