National Chemical Company manufactures a chemical compound that is sold for $59 per gallon. A new variant of the chemical has been discovered, and if the basic compound were processed into the new variant, the selling price would be $84 per gallon. National expects the market for the new compound variant to be 8,400 gallons initially and determines that processing costs to refine the basic compound into the new variant would be $159,600. Required: a. What would be the effect on total profit if National produces the new compound variant? b. Should National produce the new compound variant? Complete this question by entering your answers in the tabs below. Required A Required B What would be the effect on total profit if National produces the new compound variant? f National produces the new compound, profit will increase Required A Required B >

National Chemical Company manufactures a chemical compound that is sold for $59 per gallon. A new variant of the chemical has been discovered, and if the basic compound were processed into the new variant, the selling price would be $84 per gallon. National expects the market for the new compound variant to be 8,400 gallons initially and determines that processing costs to refine the basic compound into the new variant would be $159,600. Required: a. What would be the effect on total profit if National produces the new compound variant? b. Should National produce the new compound variant? Complete this question by entering your answers in the tabs below. Required A Required B What would be the effect on total profit if National produces the new compound variant? f National produces the new compound, profit will increase Required A Required B >

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 17E

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National Chemical Company manufactures a chemical compound that is sold for $58 per gallon. A new variant of the chemical has been discovered, and if the basic compound were processed into the new variant, the selling price would be $82 per gallon. National expects the market for the new compound variant to be 8,700 gallons initially and determines that processing costs to refine the basi compound into the new variant would be $182,700 Required: a. What would be the effect on total profit if National produces the new compound variant? b. Should National produce the new compound variant? Complete this question by entering your answers in the tabs below. Required A Required B What would be the effect on total profit if National produces the new compound variant? if National produces the new compound, profit will increase
National Chemical Company manufactures a chemical compound that is sold for $53 per gallon. A new variant of the chemical has been discovered, and if the basic compound were processed into the new variant, the selling price would be $81 per gallon. National expects the market for the new compound variant to be 8,500 gallons initially and determines that processing costs to refine the basic compound into the new variant would be $136, 000. Required: What would be the effect on total profit if National produces the new compound variant? Should National produce the new compound variant?
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I need solution to part D mainly... if you have time you can solve A,B,C otherwise not required... Graph should be neat and clean. The fuel Company in 2022 requires 240,000 units of raw materials. Purchase price raw materials/unit of Rp. 2,000. The cost of ordering is Rp. 150,000/customer, while storage fee of 25% of the purchase price. You are asked to count : a. What is the most economical order quantity (EOQ)? b. How many orders must be made in a year? c. How many days does the company place an order (1 year = 360 days)? d. Draw the curve?
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