Knowing what you now know about fixed and variable costs, assume that you read these two headlines Comcast expects to sign up 200,000 new internet subscribers this month for $50 per month or $600 per year for a total increase in sales of $120,000,000 Kroger expects its sales to increase $120,000,000 this year Assume that in both situations the increase is within the relevant range of operations and no additional capacity will need to be added Which of these two companies will benefit the most financially Why New Madrid Chocolate Corporation manufactures bulk chocolate that it sells to Venus Candy Company Currently, New Madrid packages and ships their bulk chocolate in 50 pound bars that are then shipped by truck to Venus Venus then unpacks the bars, disposes of the packaging, melts the bars, and works the chocolate into smaller retail products An astute and environmental conscientious employee observes that New Madrid could make the chocolate keep it hot or warm and ship it in heated tankers to Venus This would save cooling and reheating energy cost, packaging cost and time associated with these activities Assume the following cost Cooling cost and time for New Madrid $10,000 Packaging cost for New Madrid $20,000 Annual transportation cost by truck $50,000 paid by New Madrid Annual transportation cost by train $40,000 paid by New Madrid Unpackaging and disposal cost of packaging for Venus $10,000 Reheating cost and time for Venus $30,000 How much will New Madrid gain if they approach Venus and Venus agrees to implement this activity reducing plan How much will Venus benefit financially by implementing this plan Keeping the prior example in mind please discuss the costs that Uber and Lyft currently save by having independent contractors drive their personal automobiles today Additionally, please discuss the cost that will revert (or are created and shift) to Uber and Lyft if they are successful in shifting to self driving cars in the future

The Answer is in the image, click to view ...

Question: Knowing what you now know about fixed and variable costs, assume that you read these two headlines: Comcast expects to sign up 200,000 new internet

Knowing what you now know about fixed and variable costs, assume that you read these two headlines:
- Comcast expects to sign up 200,000 new internet subscribers this month for $50 per month or $600 per year for a total increase in sales of $120,000,000.
- Kroger expects its sales to increase $120,000,000 this year.

Assume that in both situations the increase is within the relevant range of operations and no additional capacity will need to be added. Which of these two companies will benefit the most financially? Why?

New Madrid Chocolate Corporation manufactures bulk chocolate that it sells to Venus Candy Company. Currently, New Madrid packages and ships their bulk chocolate in 50-pound bars that are then shipped by truck to Venus. Venus then unpacks the bars, disposes of the packaging, melts the bars, and works the chocolate into smaller retail products. An astute and environmental conscientious employee observes that New Madrid could make the chocolate keep it hot or warm and ship it in heated tankers to Venus. This would save cooling and reheating energy cost, packaging cost and time associated with these activities. Assume the following cost:
- Cooling cost and time for New Madrid $10,000
- Packaging cost for New Madrid $20,000
- Annual transportation cost by truck $50,000 paid by New Madrid
- Annual transportation cost by train $40,000 paid by New Madrid
- Unpackaging and disposal cost of packaging for Venus $10,000
- Reheating cost and time for Venus $30,000

How much will New Madrid gain if they approach Venus and Venus agrees to implement this activity-reducing plan?

How much will Venus benefit financially by implementing this plan?

Keeping the prior example in mind please discuss the costs that Uber and Lyft currently save by having independent contractors drive their personal automobiles today. Additionally, please discuss the cost that will revert (or are created and shift) to Uber and Lyft if they are successful in shifting to self-driving cars in the future.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

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!

I really need help with this [The following information applies to the questions displayed below.) The December 31, 2021, unadjusted trial balance for the Wolkstein Drug Company is presented below....

Week 2 - Practice Set Name Please type a numerical solution to the problems below: 1. Malden Corporation has annual fixed costs of $2,000,000, variable costs of $40 per unit and a selling price of...

8. Knowing what you now know about fixed and variable costs, assume that you read these two headlines: Comcast expects to sign up 200,000 new internet subscribers this month for $50 per month or $600...

5. Instead of expanding into the new plant, what are some other alternatives Gideon could use to meet this increased demand. Mention at least one alternative and talk about a strength of this...

8. Continuing from the prior two problems, if Dexter pays 20% of pretax income (not sales) in taxes to various government authorities, please calculate Dexter's after-tax net income. 9. Knowing what...

1. Malden Corporation has annual fixed costs of $2,200,000, variable costs of $45 per unit and a selling price of $100 per unit. What is Maldens breakeven point in units? 2. Bluff Corporation has a...

Please use a numerical solution to the problems below: 1. Malden Corporation has annual fixed costs of $4,000,000, variable costs of $25 per unit and a selling price of $60 per unit. What is Malden's...

Year $12 5. Clarkton currently has a fixed annual cost of $88,000, variable cost of $4 per unit, and a selling price of S14 per unit. What unit volume is needed for Clarkton to earn a desired profit...

6. Dexter Corporation projects the following units and selling prices: Year 1 Year 2 Year 3 Unit sales 1,000 1,500 2,000 Selling price per unit $10 $12 $15 Year 4 3,000 $18 Please calculate Dexter's...

Continuing from the prior two problems, if Dexter pays 31% of pretax income (not sales) in taxes to various government authorities, please calculate Dexters after-tax net income. Knowing what you now...

Knowing what you now know about fixed and variable costs, assume that you read these two headlines: Comcast (an internet supplier with high sunk costs and very low variable costs in its internet...

The solubility of ammonium chloride in water at different temperatures is given below: Temperature (in degree celsius): 10, 20, 40, 60, 80 Solubility (in grams): 24, 37, 41, 55, 66 The mass of...

What is meant by business sustainability?

wht the below post is important Provide a real-world example where overconfident assessments lead to suboptimal outcomes. Evaluate the specific stages of the capital budgeting process that are most...

ichcod of 40.000 which were complete w On 2019, had a beginning W e bce of $30,000 $10,000 ofert Meters and balance 530.000 $10,000 of Drect Materials and 5000 of Cans retto conversion costs During...

A letter turning down a job applicant Message Organization: Choosing the Approach: Indicate whether the direct or the indirect approach would be best in each of the following situations. [LO-5]

Did the sender choose an appropriate medium and channel for the message? Media and Purpose: List three messages you have read, viewed, or listened to lately (such as direct-mail promotions, letters,...

A letter from a recent college graduate, requesting a letter of recommendation from a former instructor Message Organization: Choosing the Approach: Indicate whether the direct or the indirect...