A company produces products at a cost of $38 each. Defective products cost an additional $15...

A company produces products at a cost of $38 each. Defective products cost an additional $15 each to repair. The probability of no defective products is 80%. The probability of 5% defective products is 20%. What is the expected cost of producing 500 products? $

Solutions

Expert Solution

orchestra answered 1 year ago

Next > < Previous

Related Solutions

85% of the products are defective. Of the Next 15 products, what is the probability that...

85% of the products are defective. Of the Next 15 products, what is the probability that A) 3-6 are not defective. B) Fewer than 4 are not defective C) More than 5 are not defective.

XYZ Company manufactures plugs at a cost of $38 per unit, which includes $15 of overhead,...

XYZ Company manufactures plugs at a cost of $38 per unit, which includes $15 of overhead, and 40% of the overhead is variable. XYZ needs 40,000 of these plugs annually (as part of a larger product it produces). ABC Company has offered to sell these units to Regis at $32 per unit. If XYZ decides to purchase the plugs, $100,000 of the annual fixed overhead cost will be eliminated, and the company may be able to rent the facility previously...

XYZ Company manufactures plugs at a cost of $38 per unit, which includes $15 of overhead,...

A firm produces two products where marginal cost of production for each product is equal to...

A firm produces two products where marginal cost of production for each product is equal to $30. The table below shows the reservation prices of different types of consumers for each of your product. Consumer Type Product 1 Product 2 A 25 100 B 40 80 C 80 40 D 100 25 Consider three alternative pricing strategies (i) only selling the goods individually (ii) only bundling and (iii) providing both as a package and individually. For each strategy, determine the...

Homerun Corporation produces baseball bats for kids that it sells for $38 each. At? capacity, the...

Homerun Corporation produces baseball bats for kids that it sells for $38 each. At? capacity, the company can produce 36,000 bats a year. The costs of producing and selling 36,000 bats are as? follows: LOADING... ?(Click to view the? costs.) Cost per Bat Total Costs Direct materials $12 $432,000 Direct manufacturing labor 2 72,000 Variable manufacturing overhead 2 72,000 Fixed manufacturing overhead 7 252,000 Variable selling expenses 4 144,000 Fixed selling expenses 5 180,000 Total costs $32 $1,152,000 Read the...

Welker Products sells small kitchen gadgets for $15 each. The gadgets have a variable cost of...

Welker Products sells small kitchen gadgets for $15 each. The gadgets have a variable cost of $4 per unit, and Welker Products' fixed operating costs are $220,000 per year. Welker Products' capital structure includes 55% debt and 45% equity. Annual interest expense is $25,000, and the corporate tax rate is 35%. a. Calculate the break-even point in units. b. If Welker Products sells 25,000 units, calculate the firm's EBIT and net income. c. If sales increase ten percent from 25,000 units to 30,000...

Assume a company produces two products: x and y. Assume the cost functions are as follows:...

Assume a company produces two products: x and y. Assume the cost functions are as follows: C(qx, 0) = 2qx^2 C(0, qy) = qy^2 C(qx, qy) = 2qx^2 + qy^2 + qxqy A. Calculate the economies of scale meaure (S) for x B. Does x exhibit economies of scale? C. Calculate the economies of scale meaure (S) for y D. Does y exhibit economies of scale? E. Calculate the economies of scope meaure (SC) F. Would it be better to...

Chisholm Company produces several products, including a karate robe. The company uses a standard cost system...

Chisholm Company produces several products, including a karate robe. The company uses a standard cost system to assist in cost control. According to the standards that have been set for the robes, the factory has a denominator level of activity of 780 direct labour hours which should result in the production of 1,950 robes. The standard costs associated with this level of production are as follows: Total $ per unit of product Direct materials $35,490 $18.20 Direct labour 7,020 3.60...

1. A company produces and sells two diﬀerent products. The demand for each product is unlimited,...

1. A company produces and sells two diﬀerent products. The demand for each product is unlimited, but the company is constrained by cash availability and machine capacity. Each unit of the ﬁrst and second product requires 3 and 4 machine hours, respectively. There are 20,000 machine hours available in the current production period. The production costs are $3 and $2 per unit of the ﬁrst and second product, respectively. The selling prices of the ﬁrst and second product are $6...

A Company produces two products. Relevant information for each product is shown in the Table below....

A Company produces two products. Relevant information for each product is shown in the Table below. The company has a goal of $48 in profits and incurs $1 penalty for each dollar it falls short of this goal. A total of 32 hours of labor are available. A $2 penalty is incurred for each hour of overtime (labor over 32 hours) used, and $1 penalty is incurred for each hour of available labor that is unused. Marketing considerations require at...

Subjects