Karla's candle factory is considering two different manufacturing options. Option A is highly automated with fixed costs of $25,000 and variable costs of $.1/candle
Option B uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle. If demand for Karla's candles is 25,000, which option should she pick?
Option A: $25,000 + .1(25,000 ) = $27,500
Option B: $10,000 + .5(25,000 ) = $22,500
Karla should pick Option B
You might also like to view...
Calculate the total value of owner's equity of a business if it realizes a net profit of $240 million at a return of 30%
A) $8 billion B) $800 million C) $720 million D) $7.2 billion E) $2.4 billion
Identify a true statement about positive discipline.
A. Employees usually stay away from engaging in problem behavior when they feel frustrated. B. Supervisors should not only punish problem behavior but also reward desirable kinds of behavior. C. Explaining the consequences of violating rules is not the responsibility of a supervisor. D. Implementation of self-discipline is a redundant concept because most people get satisfaction from doing a job well.
Towson Corporation acquired 1,000,000 shares of its own common stock for $10,000,000 during Year 2 . The statement of cash flows classifies the transaction as a(n)
a. exchange transaction. b. investing activity. c. financing activity. d. operating activity. e. equity activity.
What is a major challenge that marketers face when entering social networks?
A) Advertising rates are highly negotiable. Marketers can easily spend too much. B) Marketers have to blend in. Just showing up in a social network is suspect. C) Marketers cannot tell who is a connector and who is an audience member. D) People on social networks tend to be greedy. They want free products from marketers. E) Marketers are used to using traditional media. They do not know how to navigate social sites.