Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Management Expert

Research the information given below and reply the following problems independently:

1.) Prospective customer in unrelated market offered to buy 2000 andle grinders for R164000. Angle grinders would be produced in addition to 200000 units sold. Regular sales commission on 2000 angle grinders would still be paid by Pringle Limited. Must the offer be accepted?

2.) A supplier offered to produce year's supply of 200000 plastic housings for R12 each. Suppose that Pringle Limited would avoid R700000 of fixed costs allotted to housings if it buys housings. What would be effect on operating profit if it bought rather than made housings? Illustrate your calculations.

INFORMATION

Pringle Limited produces anlge grinders (a power tool). Sales for year just ended were 200000 units at R200. The table below illustrates costs for year ended of plastic housing seperately from costs of electrical and mechanical components.

Electrical & Plastic Angle
mechanical components housing Grinders

Direct materials 8 800 000 1 000 000 9 800 000
Direct labour 800 000 600 000 1 400 000
Variable factory overheads 200 000 400 000 600 000
Other Variable Costs 200 000 - 200 000
Sales commission (10% sales) 4 000 000 - 4 000 000
Fixed Costs 4 440 000 960 000 5 400 000

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M930840

Have any Question? 


Related Questions in Business Management

Give at least three examples of the medical dominance of

Give at least three examples of the medical dominance of physicians. In your opinion, should physicians have as much power as they do? Why, or why not? Your response should be at least 75 words in length.

After you have studied economics in the news on pp 174-175

After you have studied Economics in the News on pp. 174-175, answer the following questions. A. Why does the news article say that bond prices and interest rates move in opposite directions? Is it correct? Explain. B. Ho ...

A number of currency crises have affected certain countries

A number of currency crises have affected certain countries, which have also resulted in contagion in the sense that the crises affected neighboring countries. In a critical essay, select a country (or countries) affecte ...

What would be the difficulties in creating a team charter

What would be the difficulties in creating a team charter for a group project for an online class?

After hurricane katrina criticism directed at dhs claimed

After Hurricane Katrina, criticism directed at DHS claimed that the Department should actually prepare for all possible kinds of hazards and not just terrorist attacks (remember - it's mission was broadened to "all-hazar ...

For dhl identify and discuss what you believe to be the

For DHL, Identify and discuss what you believe to be the most strategic external environment scanning factor that could have the biggest impact on your Strategic Audit firm in the next five years. Explain what you think ...

Assignmentthree days into a voyage on a cruise ship 50

Assignment Three days into a voyage on a cruise ship 50 people developed fever, vomiting, and diarrhea. It was determined that all 50 of them attended a banquet the night before the onset of symptoms. You decide to take ...

What is the sellers expected revenue in a sealed-bid

What is the seller's expected revenue in a sealed-bid first-price auction in which there are two buyers, and their private values V 1  and V 2  are independent; V 1  is uniformly distributed over [0, 2] and V 2  is unifo ...

In review of the billy beane changing the game case

In review of the Billy Beane: Changing the Game" case analysis, what, if any, are the potential problems with the HR strategies adopted by the Oakland A's?

What are the advantages and disadvantages of contracting

What are the advantages and disadvantages of contracting out certain services that had been provided by the government? Please be specific.

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen