American Sports, an outdoor sports retailer, is planning to add a Web site for online sales. The
Question:
American Sports, an outdoor sports retailer, is planning to add a Web site for online sales. The estimated costs of two alternative approaches are as follows:
At the expected level of orders, which online approach has the lower cost? What is the indifference level of orders, or the “break-even” level of orders? What is the meaning of this level of orders?
Transcribed Image Text:
Alternative 1 Alternative 2 S315,000 7 45,000 $155,000 Annual fixed cost Variable cost per order Expected number of orders 45,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 56% (16 reviews)
Alternative 1 Alternative 2 Variable cost per order 900 700 Expected number of ord...View the full answer
Answered By
Shubhradeep Maity
I am an experienced and talented freelance writer passionate about creating high-quality content. I have over five years of experience working in the field and have collaborated with several renowned companies and clients in the SaaS industry.
At Herman LLC, an online collective of writers, I generated 1,000+ views on my content and created journal content for 100+ clients on finance topics. My efforts led to a 60% increase in customer engagement for finance clients through revamping website pages and email interaction.
Previously, at Gerhold, a data management platform using blockchain, I wrote and published over 50 articles on topics such as Business Finance, Scalability, and Financial Security. I managed four writing projects concurrently and increased the average salary per page from $4 to $7 in three months.
In my previous role at Bernier, I created content for 40+ clients within the finance industry, increasing sales by up to 40%.
I am an accomplished writer with a track record of delivering high-quality content on time and within budget. I am dedicated to helping my clients achieve their goals and providing exceptional results.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
Question Posted:
Students also viewed these Managerial Accounting questions
-
The Walt Disney Company is planning to add a new rollercoaster to its park in Anaheim, California. The cost to purchase and build this rollercoaster will be $12,000,000 and will cost $80,000 in...
-
A large manufacturer of pencil sharpeners is planning to add a new sharpener, and you have been asked to balance the assembly line, given the following task times and precedence relationships. Assume...
-
Recreational Sports, an outdoor sports retailer, is planning to add a website for online sales. The estimated costs of two alternative approaches are as follows: At the expected level of orders,...
-
A company sells four types of gift packages. The cost per unit and demand for each package type is shown in the table below. A fixed cost of $1,000 is also incurred for each different type of gift...
-
Why would a business use multi-segment pricing early in the late-growth stage of the product life cycle?
-
As a model for the production of trypsin for trypsinogen in digestion, biochemists have proposed the model dy/dt = k(A - y) (B+y) Where k> 0, A is the initial amount of trypsinogen, and B is the...
-
The W10 \(\times 45\) structural A-36 steel column is fixed at its bottom and free at its top. If it is subjected to a load of \(P=2\) kip, determine if it is safe based on the AISC equations of Sec....
-
Brabant NV of the Netherlands is a wholesale distributor of Dutch cheeses that it sells throughout the European Community. Unfortunately, the company's profits have been declining, which has caused...
-
What strategies can organizations employ to foster a culture of inclusion and diversity, and what are the potential challenges and benefits associated with such initiatives ?
-
Choose the dependent variable (the response variable to be "explained") and the independent variable (the predictor or explanatory variable). (a-1) Dependent Variable Website Hits Weekly Revenue O...
-
One Travel provides travel services on the Internet. 2011 was an important year for One Travel as it reported positive operating income after 3 years of operating losses. In the first quarter of...
-
The head of the warehousing division of Lachton, Co., was concerned about some cost behavior information given to him by the new assistant controller, who was hired because of his recent training in...
-
Zeke has a universal life insurance policy with a face value of $200,000. The current cash value of the policy is x dollars. The premium is m dollars per month. He is going to use the cash value to...
-
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn. Ownership of a trademark is typically noted by using the letter O in a circle.
-
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn. It is illegal for a software producer to require that a user register his or her ownership...
-
A small community with a population of 1,000 has a trucked water supply system that provides water from a lake (3 km from a village). There are 200 houses, one hotel, one hospital, one school, one...
-
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn. There is no set time limit on the legal protection available for trade s ecrets.
-
Synthesize the waveform for which the trigonometric Fourier series is f(t)=- sincor-sin 3eur+sin 50or - sin 7eur + 70t ++...} 49 8V
-
An optically active compound A has the formula C 8 H 13 Br. Compound A gives no reaction with Br 2 in CH 2 Cl 2 , but it reacts with K+(CH 3 ) 3 CO to give a single new compound B in good yield....
-
Baxter, Inc., owns 90 percent of Wisconsin, Inc., and 20 percent of Cleveland Company. Wisconsin, in turn, holds 60 percent of Clevelands outstanding stock. No excess amortization resulted from these...
-
To understand stories about how trade works, it is useful to know some of the key facts about trade. A good start is a broad overview of the products traded and trades growing importance. How large...
-
Kookaburra Sports, Australia, produced 88,000 cricket balls in 2020. Its manufacturing costs included A$1,760,000 variable and A$88,000 fixed. Assume that no price changes will occur in 2021 and that...
-
Would you recommend conducting an investigation for each and every variance?
-
What decides the variable-overhead efficiency variance?
-
The information that follows pertains to Julia Company: (a) Temporary differences for the year 2024 are summarized below. Expenses deducted in the tax return, but not included in the income...
-
Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.60 per machine-hour was based on a...
-
Dahlia Corporation has a current accounts receivable balance of $447,016. Credit sales for the year just ended were $4,950,605. a. What is the receivables turnover? Note: Do not round Intermediate...
Study smarter with the SolutionInn App