Answer:
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The following is information concerning a product manufactured by Ames Brothers. Sales price per unit $ 68 Variable cost per unit 43 Total fixed manufacturing and operating costs (per month) 430,000 a. Determine the unit contribution margin. b. Determine the number of units that must be sold each month to break even. (Round your answer to the nearest whole number.) c. Determine the number of units that must be sold to earn an operating income of $234,000 per month. (Round your answer to the nearest whole number.)
Answer:
Ames Brothers
a. Unit contribution margin = $25
b. Break-even units
= 17,200 units
c. Break-even units to earn a target profit
= 26,560 units
Explanation:
a) Data and Calculations:
Sales price per unit $ 68
Variable cost per unit 43
Contribution per unit $25
Total fixed manufacturing and operating costs (per month) 430,000
Target operating income = $234,000 per month
a. Unit contribution margin = $25
b. Break-even units = Fixed cost/Contribution margin per unit
= $430,000/$25
= 17,200 units
c. Break-even units to earn an operating income = (Fixed cost + Target Profit)/Contribution margin per unit
= ($430,000 + $234,000)/$25
= $664,000/$25
= 26,560 units
A low-cost noncontact temperature measuring tool may be able to identify railroad car wheels that are in need of repair long before a costly structural failure occurs. If the BNF railroad saves $63,723 in year 1, and starting year 2, the amounts increasing by $14,768 each year for 5 years, what is the present worth of the savings in year 0 at an interest rate of 10% per year
Answer:
$420,546.12
Explanation:
Present worth is the sum of discounted cash flows
Present worth can be calculated using a financial calculator
Cash flow in year 1 =
Cash flow in year 2 = 78491
Cash flow in year 3 =93259
Cash flow in year 4 =108027
Cash flow in year 5=122795
Cash flow in year 6 =137563
I = 10%
PW = $420,546.12
To find the PW using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Why is the control function vital to an organization's success? How can organization's use technology to facilitate the control function?
Answer:
Controls help to better define an organization's objectives so that employees and resources are focused on them. They safeguard against misuse of resources and facilitate corrective measures. Having good records means management will better understand what happened in the past and where change can be effective.
Explanation:
Based on organization strategies, the control function is vital to an organization's success because "it assists firms to recognize errors and divergences from standards so that corrective actions can be conducted to accomplish goals."
On the other hand, organizations can use technology to facilitate the control function through maintenance of data flow, management of consumers and investors contacts, track processes, and maintenance of employee records.
What is the purpose of Organization Control?Organization control aims to ensure that the designed function or production is carried out according to established standards.
Hence, in this case, it is concluded that administrative control is vital in business management.
Learn more about organizational control here: https://brainly.com/question/25646443
The Fine Crate Company owns several machines which cut wooden planks for building storage pallets, automatically loading the planks into rolling bins for transportation and handling. Each bin holds 200 planks and a machine can cut and load one bin in an hour, which Fine Crate Company uses planks at a rate of 1000 planks an hour. If the Fine Crate Company were to use a kanban loop to control the filling of the rolling bins, attaching one kanban card to each bin, how many cards should be used to govern this production, assuming a policy variable (safety factor) of 20%?
a. 15
b.6
c. 32
d.11
e. 8
Answer:
b. 6
Explanation:
Calculation to determine how many cards should be used to govern this production,
Using this formula
Number of cards = [Demand during lead time + Safety stock] / Size of a bin
Let plug in the formula
Number of cards = 1000 * 1 * (1 + 0.2) / 200
Number of cards = 1000*1*1.2 / 200
Number of cards = 6
Therefore The numbers of cards that should be used to govern this production is 6