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Dimas [21]
2 years ago
10

Betsy owned a speedboat that was not operating correctly. She hired Gail, a mechanic, to determine what needed to be repaired or

replaced on the boat. Gail concluded that the boat needed over $5,000 of work to run safely. Upset by the news, Betsy decided to get a second opinion from Kathy, another mechanic. Kathy advised Betsy that the boat only needed a new fuel pump, which cost considerably less than $5,000. Betsy decides to sell her boat instead of repairing it. When a prospective buyer asks Betsy whether the boat has been inspected by a mechanic, she will:_________.
Business
1 answer:
Alchen [17]2 years ago
4 0

Answer:

Betsy should simply tell the truth: that the boat was actually inspected by two mechanics, but not only it was not repaired, but both mechanics had a very different diagnosis about what was wrong with the boat.

She should also warn the buyer that the boat likely needs at least a new fuel pump, and in case the diagnostic of the first mechanic (Gail) is true, the boat then would likely need an expensive repair.

You might be interested in
The pdca cycle is a powerful approach for problem solving as it provides the foundation for teams to
natima [27]

The pdca cycle is a powerful approach for problem solving as it provides the foundation for teams to figure out ways to change and implement new ideas within their group setting and project or business. The PDCA stands for plan-do-check-act. In the planning stage your team will plan by determining what the problem is and what ways to fix it. In the do stage, your team will act on the ways you can solve the problem. In the check stage you are looking to check your work and see what worked and what needs to be changed. The final stage is the act stage which if you find solutions that work, implement them moving forward.


4 0
2 years ago
Based on a predicted level of production and sales of 12,000 units, a company anticipates reporting operating income of $26,000
dexar [7]

Answer:

Fixed Cost = $10,000

Variable Costs = $90,000

Explanation:

Variable Cost per unit = $72,000 ÷ 12,000

                                      = $6

Variable Costs at 15,000 units = $6 x 15,000

                                                   = $90,000

Fixed Cost (given) = $10,000

8 0
1 year ago
The cash register tape for Kingbird Industries reported sales of $10,032.30. Record the journal entry that would be necessary fo
siniylev [52]

Answer:

(a)

Dr Cash $10,032.30

Cr Cash Over and Short$74.90

Cr Sales Revenue $10,107.2

(b)

Dr Cash $10,148.54

CrSales Revenue$10,107.2

Cr Cash Over and Short$41.34

Explanation:

Kingbird Industries

(a)

Dr Cash $10,032.30

Cr Cash Over and Short$74.90

Cr Sales Revenue $10,107.2

($10,032.30+$74.90)

(b)

Dr Cash $10,148.54

(10,107.2+$41.34)

CrSales Revenue$10,107.2

Cr Cash Over and Short$41.34

3 0
2 years ago
One of your duties as the capacity manager for XYZ Company is to determine the best operating level. One way to help determine c
yanalaym [24]

Answer:

Capacity utilization rate of team 1=4200/4700=0,89

Capacity utilization rate of team 2=3700/4700=0,78

Explanation:

To get the maximum capacity of utilization capacity manager must consider the routine safety and the level where average cost per unit, so we use 4700 widgets per day to get the rate of team 1 and 2.  

Capacity utilization rate of team 1=4200/4700=0,89

Capacity utilization rate of team 2=3700/4700=0,78

3 0
2 years ago
For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and th
DedPeter [7]

Answer:

a. Property taxes, factory. <u>Fixed Cost. Indirect Manufacturing Cost. </u>

b. Boxes used for packaging detergent produced by the company. <u>Variable cost. Direct Manufacturing cost.</u>

c. Salespersons' commissions. <u>Variable cost. Selling cost. </u>

d. Supervisor's salary, factory. <u>Fixed cost. Indirect manufacturing cost.</u>

e. Depreciation, executive autos.<u> Fixed cost. Administrative cost. </u>

f. Wages of workers assembling computers.<u> Variable cost. Direct manufacturing cost. </u>

g. Insurance, finished goods warehouses. <u>Fixed cost. Selling cost. </u>

h. Lubricants for production equipment. <u>Variable cost. Indirect manufacturing cost.</u>

i. Advertising costs. <u>Fixed cost. Selling costs. </u>

j. Microchips used in producing calculators. <u>Variable costs. Direct manufacturing cost. </u>

k. Shipping costs on merchandise sold.<u> Variable cost. Selling cost.</u>

l. Magazine subscriptions, factory lunchroom.<u> Fixed cost. Indirect manufacturing cost.</u>

m. Thread in a garment factory. <u>Variable cost. Indirect manufacturing cost. </u>

n. Billing costs. <u>Variable cost. Selling cost. </u>

o. Executive life insurance. <u>Fixed cost. Administrative cost. </u>

p. Ink used in textbook production. <u>Variable cost. Indirect manufacturing cost.</u>

q. Fringe benefits, assembly-line workers. <u>Variable cost. Indirect manufacturing cost. </u>

r. Yarn used in sweater production. <u>Variable cost. Direct manufacturing cost. </u>

s. Wages of receptionist, executive offices. <u>Fixed cost. Administrative cost. </u>

3 0
2 years ago
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