An advantage of the Enterprise Value-to-EBITDA model of valuation over the Price-Earnings Multiple model of valuation is that it does NOT focus on earnings
Indicate whether the statement is true or false
TRUE
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Benitez Company currently outsources a relay switch that is a component in one of its products. The switches cost $20 each. The company is considering making the switches internally at the following projected annual production costs: Unit-level material cost$3 Unit-level labor cost$2 Unit-level overhead$1 Batch-level set-up cost (5,000 units per batch)$25,000 Product-level supervisory salaries$37,500 Allocated facility-level costs$20,000 The company expects an annual need for 5,000 switches. If the company makes the product, it will have to utilize factory space currently being leased to another company for $1,500 a month. If the company decides to make the parts, total costs will be:
A. $27,000 less than if the switches are purchased. B. $30,500 more than if the switches are purchased. C. $10,500 more than if the switches are purchased. D. $20,000 less than if the switches are purchased.
The average number of jobs in the work center for jobs listed in the following table under the shortest processing time (SPT) rule is ______.
a. 2.49 jobs
b. 2.98 jobs
c. 3 jobs
d. 3.5 jobs
Mention the characteristics of successful owners of small businesses.
What will be an ideal response?
To decrease product defects, materials managers must work closely with ________ to improve the quality of raw materials and obtained parts.
A. marketers B. customers C. stockholders D. suppliers E. employees