Mary is considering purchasing a machine from one of two suppliers. Supplier A's machine has an annual fixed cost of $10,000 and a unit variable cost of $2.10
Supplier B's machine has an annual fixed cost of $16,000 and a unit variable cost of $3.00. How large should Mary's annual demand be in order to make Supplier B's machine the better choice?
The answer is that there is no demand for which Supplier B's machine will be better. Both Supplier B's fixed and variable costs are higher than Supplier A's.
You might also like to view...
Under normal conditions, which of the following would be most likely to increase the coupon rate required to enable a bond to be issued at par?
A. Adding a call provision. B. The rating agencies change the bond's rating from Baa to Aaa. C. Making the bond a first mortgage bond rather than a debenture. D. Adding a sinking fund. E. Adding additional restrictive covenants that limit management's actions.
Which of the following is NOT one of the requirements of cellular production?
A) testing (poka-yoke) at each station in the cell B) adequate volume for high equipment utilization C) a high level of training, flexibility, and empowerment of employees D) being self-contained, with its own equipment and resources E) identification of families of products, often through the use of group technology codes or equivalents
What options are available to the aspiring franchisee to assist in the evaluation of a franchising opportunity?
What will be an ideal response?
The following information is available for the Higgins Travel Agency. After closing entries are posted, what will be the balance in the Retained earnings account? Net Income$42,500Retained earnings 130,000Dividends 12,000
A. $184,500. B. $160,500. C. $75,500. D. $130,000. E. $99,500.