Quality Metalcraft is a company in Michigan that makes prototype parts for GM and Ford. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Quality Metalcraft is a company in Michigan that makes prototype parts for GM and Ford. The QMC manager is putting together a Request for Proposal (RFP). A) You have been asked by this manager to determine the break-even price for 4 runs (400 units-each run is 100 parts). What is it? B) If GM likes the parts, they may extend the contract by 2 more runs. What is the break-even point for running both the 5th and 6th runs together? Quantity Marginal Cost per run Total Cost Average Cost per run $64 $122 $174 $64 $64 $61 $58 $55 $52 1 run 2 runs $58 3 runs $52 4 runs $46 $220 $260 5 runs $40 6 runs $34 $294 $49 A BI- 日而 Quality Metalcraft is a company in Michigan that makes prototype parts for GM and Ford. The QMC manager is putting together a Request for Proposal (RFP). A) You have been asked by this manager to determine the break-even price for 4 runs (400 units-each run is 100 parts). What is it? B) If GM likes the parts, they may extend the contract by 2 more runs. What is the break-even point for running both the 5th and 6th runs together? Quantity Marginal Cost per run Total Cost Average Cost per run $64 $122 $174 $64 $64 $61 $58 $55 $52 1 run 2 runs $58 3 runs $52 4 runs $46 $220 $260 5 runs $40 6 runs $34 $294 $49 A BI- 日而
Expert Answer:
Answer rating: 100% (QA)
Here fixed cost at all level of quantity is zero A Break even price Total fixed cost ... View the full answer
Related Book For
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
Posted Date:
Students also viewed these accounting questions
-
You have been asked by the board of trustees of a local church to review its accounting procedures. As part of this review you have prepared the following comments about the collections made at...
-
You have been asked by the board of trustees of a local church to review its accounting procedures. As part of this review you have prepared the following comments relating to the collections made at...
-
You have been asked by two of your friends, Marco and Jenna, to settle a (friendly) argument they are having about splitting the cost of a road trip during Spring Break. They will take Jenna's car...
-
The accounting records for The Skate Shed, Inc., reflected the following amounts at the end of January 2018: Prepare The Skate Shed?s multistep income statement for the fiscal year ended January 31,...
-
Differentiate between perfection standards and currently attainable standards.
-
What is the present value of the following future amount? $488,901 to be received 13 years from now, discounted back tothe present at 5 percent, compounded annually? Round the answer to two decimal...
-
Examine the collaborative filtering mechanism used by an online shopping system. How effective do you think it is? Might there be more effective methods to achieve the same goal? What kinds of...
-
Henry Crouchs law office has traditionally ordered ink refills 60 units at a time. The firm estimates that carrying cost is 40% of the $10 unit cost and that annual demand is about 240 units per...
-
1. The diagram below shows numerical estimates of annual energy fluxes on Earth, in units of 108 terawatt-hours (TWh), where 1 TW = 10 W. For example, the "15.1" solar input number at the top means...
-
On January 1, 2021, Vacation Destinations issues $40 million of bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Required: 1....
-
There are often choices along the way about how to break a number down into the sum of two smaller numbers. The next sum-product table starts from 4 going to 2+2 instead of 3 + 1. 4= (2+2) 2.2 = 4 =...
-
Calculate the atmospheric pressure at an elevation of $3000 \mathrm{~m}$, assuming (a) air is incompressible, at a temperature of $59^{\circ} \mathrm{F}$; (b) air is isothermal at $59^{\circ}...
-
Water is flowing in a horizontal pipe bend at a velocity of $10 \mathrm{ft} / \mathrm{s}$. The radius of curvature of the inside of the bend is 4 in., and the pipe ID is 2 in. A mercury manometer is...
-
An orifice having a diameter of $1 \mathrm{in}$. is used to measure the flow rate of SAE 10 lube oil $(\mathrm{SG}=0.928)$ in a $2 \mathrm{in}$. sch 40 pipe at $70^{\circ} \mathrm{F}$. The pressure...
-
It is possible to achieve a weightless condition for a limited time in an airplane by flying in a circular arc above the earth (like a rainbow). If the plane flies at $650 \mathrm{mph}$, what should...
-
A 2 in. sch 40 pipe carries a $35^{\circ} \mathrm{API}$ distillate at $50^{\circ} \mathrm{F}(\mathrm{SG}=0.85)$. The flow rate is measured by an orifice meter, which has a diameter of $1.5...
-
After a merger presentation from the CEO extoling the benefits of the merger, Tom is excited about working with a team of developers in the company in which his is integrating and talks about his...
-
Complete the equations for the following equilibria and calculate Keq where the Keq expression includes [HO]. Be sure to enter Keq in proper scientific notation. (a) ammonia (acting as a base) reacts...
-
The following audit procedures are included in the audit program because of heightened risks of material misstatements due to fraud. 1. Use audit software to search cash disbursement master files for...
-
The following internal controls were tested in prior audits. Evaluate each internal control independently and determine which controls must be tested in the current year's audit of the December 31,...
-
Since 1938, when auditors failed to uncover fictitious inventory recorded by the McKesson & Robbins Company, auditors have been ordinarily required to physically observe the counting of inventory. It...
-
Consider the sample space \(S=\{y y, y n, n y, n n\}\) in Example 2.2. Suppose that the subset of outcomes for which at least one camera conforms is denoted as \(E_{1}\). Then, \[ E_{1}=\{y y, y n, n...
-
As in Example 2.1, camera recycle times might use the sample space \(S=R^{+}\), the set of positive real numbers. Let \[ E_{1}=\{x \mid 10 \leq x <12\} \quad \text { and } \quad E_{2}=\{x \mid 11 0\}...
-
A hospital operating room needs to schedule three knee surgeries and two hip surgeries in a day. We denote a knee and hip surgery as \(k\) and \(h\), respectively. The number of possible sequences of...
Study smarter with the SolutionInn App