A company has old inventory on hand that cost Rs. 15,000. Its scrap value is Rs. 20,000. The inventory could be sold for Rs. 50, 000 by incurring an additional cost of Rs. 15,000. What should the company do?
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- A business has recently purchased a tonne of PVC material at a cost of £350. The material could be sold immediately for £320 or it could be used as a substitute for another type of material that costs £310 per tonne. The PVC material is in continuous use within the business and its replacement cost is £360 per tonne. What is the relevant cost of the material? O a. £360 O b. £350 O c. £310 O d. £630 O e. £320More Parts Liquidators specializes in buying excess parts inventories for resale or to incorporate into other products. They recently purchased parts for $125,000 and they have a buyer willing to pay $150,000. The company can also incorporate these parts into a new product at a cost of $93,750 and sell the new product for $237,500. What should More Parts Liquidators do?Karan
- For a certain company, the cost function for producing x items is C(x)=40x+200, and the revenue function for selling x items in R(x)=−0.5(x−80)2+3,200. The maximum capacity of the company is 110 items. The profit function P(x) is the revenue function R(x) (how much it takes in) minus the cost function C(x) (how much it spends). In economic models, one typically assumes that a company wants to maximize its profit, or at least make a profit!Assuming that the company sells all that it produces, what is the profit function?P(x)= Preview Change entry mode . Hint: Profit = Revenue - Cost as we examined in Discussion 3. What is the domain of P(x)?Hint: Does calculating P(x) make sense when x=−10 or x=1,000? The company can choose to produce either 40 or 50 items. What is their profit for each case, and which level of production should they choose?Profit when producing 40 items = Number Profit when producing 50 items = Number Can you explain, from our model, why the company makes less profit…AThe efficiency gains resulting from a just-in-time inventory management system will allow a firm to reduce its level of inventories permanently by $519,000. What is the most the firm should be willing to pay for installing the system?
- IT Company has 15,000 units in inventory that had a production cost of P3 per unit. These units cannot be sold through normal channels due to a significant technology change. These units could be reworked at a total cost of P23,000 and sold for P28,000. Another alternative is to sell the units to a junk dealer for P8,500. The relevant cost for IT Company to consider in making its decision is A.P45,000 of original product costs B.P23,000 for reworking the units C.P68,000 for reworking the units D.P28,000 for selling the units to the junk dealerA corporation charges P30 per unit for their goods. The monthly unit variable cost is P22, while the total fixed expenses are P100,000. The firm now pays monthly salary of P40,000 without commission. It is exploring a pay plan in which salesmen would earn a 5% commission on sales, but their monthly salary would be reduced to P25,000. At what point in the sales cycle is the corporation unconcerned about the two compensation plans?A company inadvertently produced 3,000 defective MP3 players. The players cost $12 each to produce. A recycler offers to purchase the defective players as they are for $8 each. The production manager reports that the defects can be corrected for $10 each, enabling them to be sold at their regular market price of $19 each. The company should a. Correct the defect and sell them at the regular price. b. Sell the players to the recycler for $8 each. c. Sell 2,000 to the recycler and repair the rest. d. Sell 1,000 to the recycler and repair the rest. e. Throw the players away.
- Hot Ltd has 5,000 units in inventory that cost $1.50 per unit to produce. Due to changing technology, the sales department is having difficulty selling the product. It will cost $2,000 to scrap the units. The company should consider any price over:Consider the case of the Cast Iron Company. On each nondelinquent sale, Cast Iron receives revenues with a present value of $1,390 and incurs costs with a present value of $1,000. Cast Iron’s costs have increased from $1,000 to $1,240. Assuming that there is no possibility of repeat orders and that the probability of successful collection from the customer is p = 0.95, answer the following. a-1. What is the expected profit of granting credit? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) a-2. Should Cast Iron grant or refuse credit? multiple choice Grant Refuse b. What is the break-even probability of collection? (Enter your answer as a percent rounded to 1 decimal place.)A company sells gift baskets for $145.00. The cost to their business for the item is $56.00 with expenses of 33% of the cost. During a clearance sale they sell the baskets at a reduced price of $89.00. Determine the profit or loss resulting from selling the baskets at this clearance price. Question 5 options: loss of $70.52 loss of $14.52 profit of $14.52 loss of $ 33.00