1. XYZ Company is considering making a new product which requires several types of raw material:In StockRequiredRaw MaterialDescriptionAyayNil100Replacement Cost is $5 per unit. This material haslimited supply. This material is also used to produceanother product which has a contribution margin of$3.5 per unit of material Ayay. All available supplyof material Ayay are needed to produce thisanother product.BenzamNil40Current purchase price is $7/unit.Chizzum100150purchased for$10/unitCurrent purchase price is $14/unit. The materialhas no use in the company other than for theproject under consideration. Units in inventory canbe sold for $12/unit.Dedee12050 purchasedfor $20/unitCurrent purchase price is $22/unit. The material isregularly used in current manufacturing operations.Required: Compute the relevant cost of each material.

In the given scenario, an anonymous company (XYZ) has planned to make a new product. The new product…

Answered: Required: Compute the relevant cost of…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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Franklin Company makes fine jewelry that it sells to department stores throughout the United States. Franklin is trying to decide which of the two bracelets to manufacture. Cost data pertaining to the two choices follow. Bracelet A Bracelet B Cost of materials per unit Cost of labor per unit Advertising cost per year Annual depreciation on existing equipment %24 30 37 43 43 8,800 6,500 7,700 5,900 Required a. Identify the fixed costs and determine the amount of fixed cost for each product. b. Identify the variable costs and determine the amount of variable cost per unit for each product. c. Identify the avoidable costs and determine the amount of avoidable cost for each product.
Calculate customer life time value for the data below. (Show Work) Purchase Occasion Transition Probability Average Basket Size 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 ΝΑ 55% 75% 78% 83% 81% 81% 86% 82% 85% 90% 93% 85% 89% 85% 91% 97% 97% 96% 85% 83% 89% 82% 79% 82% 89% 88% 86% 67% 75% $46.71 $56.71 $57.93 $56.87 $58.26 $66.90 $63.62 $70.27 $63.03 $62.60 $71.81 $76.76 $78.14 $65.65 $74.84 $81.11 $72.08 $87.30 $71.94 $75.44 $70.35 $72.86 $66.68 $79.90 $93.91 $61.08 $94.16 $100.40 $77.89 $99.70
Please answer this question: 1. Traveling requisition used for one time capital purchases. A. False B. True 2. Invitation for bid is used to buy when: A. The specifications are designed for one supplier. B. The buyer has wants a competition on the best offer, C. There is complete monopoly. D. The buyer prefers a specific supplier. 3. Spend analysis is the process of determining how much to pay for service A. False B. True
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28. 4.4 The Gorman Manufacturing Company must decide whether to purchase a component part from a supplier or to manufacture the component at its own plant. If demand is high, it would be to Gorman's advantage to manufacture the component. If demand is low, however, Gorman's unit manufacturing cost will be high because of underutilization of equipment. The projected profit in thousands of dollars for Gorman's make-or-buy decision is as follows. Demand Medium $40 $45 Decision Manufacture component Purchase component a. Determine the best decisions using the maximax, maximin, and opportunity loss decision criteria. b. Assume that the probability of low demand is 0.35, of medium demand is 0.35, and of high demand is 0.30. What is the best decision using the expected value criterion and what is the expected value of perfect information? Low $220 $210 High $100 $70
Please do not give solution in image format thanku Answer these Multiple Choice Questios: 6) Which of the following could be consideration to meet this important contracting requirement in exchange for a concert ticket worth $50? a) A mere peppercorn will do! b) $50 cash c) a video game originally purchased for $35 d) All of the above

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