Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

ABC Company is considering replacing a metal gear with a plastic one. The plastic gear will save $0.75 per unit but will require an expenditure of $40,000 for special tooling (each year) to produce the gear. Annual sales are 80,000 units.

A. Should the company convert to the plastic gear? What is the expected financial impact?
B. Suppose that the plastic gear creates additional warranty cost due higher failure rates. During the first year the gear is in service (warranty period) there will be two additional failures for every 1,000 gears sold. The cost to the company is $50 per gear failure. Should the company still convert to the plastic gear? What is the expected financial impact?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M924323

Have any Question? 


Related Questions in Basic Finance

1 what is the difference between venture capital firms and

1. What is the difference between venture capital firms and private equity firms? What roles do they play in the financial system? 2. The author of a newspaper article providing advice to renters observes that "landlords ...

Why is the value of a futures or forward contract at the

Why is the value of a futures or forward contract at the time it is purchased equal to zero? Contrast this with the value of the corresponding spot commodity ? Identify and provide a brief explanation of the factors that ...

Convert generic headings to talking headingsfrom a

Convert generic headings to talking headings. From a preliminary outline for a report, you have the following major and minor generic headings. Convert these to talking headings that you'll include in your final report. ...

1 briefly explain why the financial system is one of the

1. Briefly explain why the financial system is one of the most highly regulated sectors of the economy. 2. What is the Federal Reserve? Who appoints the members of the Federal Reserve's Board of Governors? How do the Fed ...

1 advise the sampsons on the maturity to select when

1. Advise the Sampsons on the maturity to select when investing their savings for their children's education. Describe any advantages or disadvantages of the relatively short-term maturities versus the longer-term maturi ...

Using the navier-stokes equations in appendix e solve

Using the Navier-Stokes equations in Appendix E, solve Problem 8.13. Problem 8.13 The device in the schematic diagram below is a viscosity pump. It consists of a rotating drum inside of a stationary case. The case and th ...

Kids inc just purchased a 400000 machine to launch its

Kids Inc. just purchased a $400,000 machine to launch its 3-year project of toy car production. The machine will be fully depreciated to zero by the straight-line method over its five-year economic life, and will be sold ...

1 identity theft what constitutes identity theft2 identity

1. Identity Theft. What constitutes identity theft? 2. Identity Theft. Is identity theft only perpetrated to acquire money, goods, or services? 3. Impact of Identity Theft. Aside from the financial losses, what other neg ...

If you could solve this problem using excel that would be

If you could solve this problem using Excel that would be great! 1) A company is considering buying either Machine A or Machine B. Machine Both machines cost $42,392, but Machine A is expected to last 4 years and generat ...

1 explain the rationale behind time series designs2

1. Explain the rationale behind time series designs. 2. Describe the simple interrupted time series design. 3. Why is contemporary history a threat to internal validity in a simple interrupted time series design?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro