Answer:
The answer is: the equilibrium quantity is larger than the socially optimal quantity.
Explanation:
In order for the equilibrium quantity and the socially optimal quantity to be equal, the government subsidy should have been equal to the positive externality created by the flu shots ($8). Since the government subsidy is larger, $11, then the equilibrium quantity will be higher (more flu shots supplied because of high subsidy).
Answer:
Differential analysis as at April 30
Make (Alternative 1) Buy (Alternative 2)
Purchase Price $0.00 $24.00
Direct materials $8.00 $0.00
Direct labor $12.00 $0.00
Variable Costs - Case related $3.00 $0.00
Total Cost $23.00 $24.00
Conclusion
Company should make carrying cases instead of purchasing as this is cheaper by $1.00
Explanation:
There is a choice to be made between Make (Alternative 1) and Buy (Alternative 2). Compute the Total costs for these choices.
Ignore the fixed overheads as they are the same for both alternatives and hence irrelevant.
Choose the alternative with lower costs.
The future worth of the periodic payment, in this case, annual, can be calculated through the equation,
FV = P x ((1 + r)^n - 1)/ r))
where FV is the future value, P is the periodic payment, r is the interest rate, and n is the number of years. Substituting the known values,
2,000,000 = P x ((1 + 0.06)^30 - 1)/ 0.06))
The value of P from the equation is $25,297.82
Hence, the answer to this item is the fourth choice.
Answer:
If a foreign government hires an American consulting firm to help the country's textile industry improve production operations, the contract is commercial, and if the foreign government refuses to pay, the consulting firm may sue the government in American courts.
False
Explanation:
Any company could be sued at anywhere so far there is bridge of agreement or contract, with the analogy above such consulting American company would be sued but in the above case, a consulting American firm can not sue themselves unless someone in the company sue the American consulting firm
Answer:
A. $37,400 unfavorable
Explanation:
With regards to the above, variable overhead spending variance is computed as
= (Actual hours × Actual rate) - (Actual hours × standard rate)
= $649,400 - ( 34,000 × $18)
= $649,400 - $612,000
= $37,400 unfavorable
Therefore, Warp's variable overhead spending variance for the month of September is $37,400 unfavorable
