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Some selected financial data from last month are given below. Management decides to increase the sales price by 12.5% (with no effect on unit variable costs) in the coming month. How many units must be sold to earn the same net profit as last month? (Choose the closest one if needed) Per unit Total Sales revenue (10,000 units sold) $4.00 $40,000 Less: Variable costs $1.50 $15,000 Contribution margin $2.50 $25,000 Less: Fixed costs $10,000 Net profit $15.000
10,000 4,286 6,000 7.143 8.333
A supermarket has six cashiers, management decides to put two cashiers together to work as a team to serve a customer and customers line up in a single queue for service. Assuming inter- arrival and service times are exponentially distributed. Which queueing model can be used to estimate the average amount of time a customer has to wait before being served? O (If you cannot view this image, click here 1.) Belele Six M/M/1 models Three M/M/2 models One M/M/3 model Three M/M/1 models One M/M/6 model
ABC Inc. has just received a special order for 10,000 units of product X at a discounted price of $100 each. Product X is normally sold for $150 each and has the following manufacturing costs: Direct materials = 540 per unit Direct labor - $20 per unit Variable manufacturing overhead = $20 per unit Fixed manufacturing overhead = $300,000 per month (based on 30 working days per month and a production capacity of 10,000 units per day) Assume ABC Inc. has enough extra capacity to fill the order without affecting the production or sale of its product to regular customers. If ABC Inc. accepts the offer, what effect will the order have on the company's short-term profit? No effect on short-term profit Increase in short-term profit Decrease in short-term profit Cannot be determined