Question: Electrofast Ltd. is manufacturing electronic equipments in which Component-X is used, which is purchased from a local supplier at a cost of ? 40 each.

Electrofast Ltd. is manufacturing electronic equipments in which Component-X is used, which is purchased from a local supplier at a cost of ? 40 each. In order to bring down cost and improve its competitiveness, the company has a proposal to install a machine for the manufacture of Component-X. It has the following two options:
Installation of semi-automatic machine involving annual fixed expenses of ? 22 lakh and a variable cost of ? 18 per component manufactured.
Installation of automatic machine involving an annual fixed cost of ? 40 lakh and a variable cost of ? 15 per component manufactured. Calculate components required to be produced to justify the installation of the machine
(A) 1,00,000 units & 1,60,000 units
(B) 50,000 units & 80,000 units
(C) 1,50,000 units & 1,00,000 units
(D) 1,40,000 units & 1,80,000 units

Step by Step Solution

★★★★★

3.41 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The detailed answer ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

A consignment of 12 electronic components contains 1 component that is faulty. Two components are chosen randomly from this consignment for testing. a. How many different combinations of 2 components...

A local bank has recently installed an automatic teller machine (ATM). At a regional meeting, an ATM specialist tells the bank manager that usage times will be normally distributed and the...

An electronic system has four components divided into two pairs. The two components of each pair are wired in parallel; the two pairs are wired in series. Let Ai j denote the event ith component in...

Integrated assignment (Accounting 200 & Taxation 200) Background information Who they are Khoza Bazaar (Pty) Ltd ("Khoza Bazaar") is a retail company that owns and operates three large supermarkets...

Integrated assignment (Accounting 200 & Taxation 200) Task B Bradley Hayden, the financial accountant of Khoza Bazaar provided you as the assistant accountant with the task of assisting with the cost...

***PLEASE USE EXCEL IF YOU ANSWER THIS QUESTION!! I NEED EXCEL TO BE USED TO COMPLETE THIS PROBLEM!!****** ***PLEASE USE EXCEL IF YOU ANSWER THIS QUESTION!! I NEED EXCEL TO BE USED TO COMPLETE THIS...

Question 6 Why did Joyson follow a supportive-partnership approach? To support your answer, include an explanation of the differences between a classic and a supportive-partnership approach...

please read case and answer question below. case 14: harley-davidson: strategic competitiveness that spans decad guriqbal chee joel cunningh pallavi dalipart john klosterma brian ra texas a&m...

About question #74, the answer is [$32 - 12 - 6 - 4 - 0.50] 2,000 = $19,000 where is the "4" come from? ch4 Student: ___________________________________________________________________________ 1....

Question 2 Analyze the relative competitive positions of Joyson and Preh prior to the acquisition. In January 2011, Wang Jiafeng (Jeff Wang), the chief executive officer (CEO) of the Chinese Joyson...

An emf of 24.0 mV is induced in a 500-turn coil at an instant when the current is 4.00 A and is changing at the rate of 10.0 A/s. What is the magnetic flux through each turn of the coil?

Create a budget to keep track of your money. Your income and expenses: JANUARY: Income $1900; Rent 600; Groceries $125; Utilities $89.50; School Expenses $125.75; Movie Tickets $61 FEBRUARY: Income...

Evaluate the definite integral by the limit definition. 6 3 8 dx

A cubical glass melting furnace has exterior dimensions of width W = 5 m on a side and is constructed from refractory brick of thickness L = 0.35 m and thermal conductivity k = 1.4 W/m. K. The sides...

An electronic device, in the form of a disk 20 mm in diameter, dissipates 100 W when mounted flush on a large aluminum alloy (2024) block whose temperature is maintained at 27C. The mounting...

The elemental unit of an air heater consists of a long circular rod of diameter D, which is encapsulated by a finned sleeve and in which thermal energy is generated by Ohmic heating. The N fins of...

Depreciation Computations, SYD Pippen Company purchased a piece of equipment at the beginning of 2007. The equipment cost $502,000. It has an estimated service life of 8 years and an expected salvage...

A process is perturbed by a sinusoidally varying input, u(t), whose amplitude is A and whose frequency is w. The resulting process output relation is given by (a) What must have been the differential...

K is a small organisation which makes plastic toys. The company was very recently formed by Mr V. Mr V is a skilled entrepreneur with many years of experience in the industry. The toy industry is...

An item in the product line for the food company discussed in question 8 has the following characteristics: Sales response rate = 0.15% change in revenue for a 1% change in the service level Trading...

Describe how transportation charges are paid under the following terms of sale: a. F.o.b. destination, freight prepaid b. F.o.b. origin, freight prepaid c. F.o.b. destination, freight collect and...

A firm purchases a material that shows definite price seasonality throughout the year with relatively minor fluctuations within each month. Requirements for the material are constant throughout the...

Burnard (1992) sent a questionnaire to a stratified sample of nursing tutors and students in Wales, to study what the tutors and students understood by the term experiential learning. The population...

Decision theoretic approach for sample size estimation. (Requires calculus.) In a decision theoretic approach, two functions are specified: L (n) = Loss or cost of a bad estimate C (n) = Cost of...

Suppose we are interested in estimating the proportion p of a population that has a certain disease. As in Section 2.3 let yi =1 if person i has the disease, and yi =0 if person i does not have the...