THSHTPritchett's Precious Time PiecesPATOGBill's company, Pritchett's Precious Time Pieces, buys, sells, and repairs old clocks andclock parts. Bill sells rebuilt springs for a price per unit of $10. The fixed cost of theequipment to build the springs is $1,000. The variable cost per unit is $5 for springmaterial.Required:Create a quantitative analysis model to determine the company's profit, and answer thefollowing:1. How much would the company's profit/(loss) be if they were unable to sell anything?2. How much would the company's profit/(loss) be if they sold 400 units?3. How many units do the company need to sell to break-even?

Quantitative analysis model is considering to identify the profit based on the quantity of selling…

Answered: Bill's company, Pritchett's Precious…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Subject: accounting
Standard Costing; Variance Analysis; Strategic Considerations In a Wall Street Journalarticle, the author notes that various retailers in the United States (e.g., Meijer, Gap, and OfficeDepot) are turning to consulting firms, such as Accenture, to develop engineered labor standards forcashiers and other retail workers. Monitoring labor-hour consumption (i.e., labor efficiency) undersuch standards involves timing from the first scan of an item in a customer’s purchase to the production of a sales receipt for the customer. A commentator for Meijer states that the system now in usehas enabled the company to more efficiently staff stores while concomitantly increasing customerservice ratings. A representative from another client of Accenture states that the new system allowsthe retailer to determine how many workers to schedule at a given time, resulting in a labor-costreduction of approximately 8%. Engineered standards were developed many years ago in a manufacturing environment, at…
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If the contract annual interest rate on a $2,880,000 fixed rate loan that is fully amortizing over 20 years with equal monthly payments is 6.25%, what is the effective yield to the lender if the lender charges 1.5% as an origination fee, $288 for a credit report and $3,080 for an appraisal fee and the loan is repaid after ten years? a. 6.25% b. 6.51% c. 6.46% d. 6.49%

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