Answer:
$7,750
Explanation:
The computation of the net income for the first year is shown below:
but before that following calculations needed
The Cost of production is
= Direct material + Direct labor + Manufacturing overhead
= $11,625 + $11,000 + $10,000
= $32,625
The Unit product cost is
= $32,625 ÷ 7,250 units
= $4.50 per unit
Now
Cost of goods sold = Number of units sold × cost per unit
= 4,500 units × $4.50
= $20,250
And, finally
Net Income = Sales revenue - COGS - general, selling, and administrative expenses
= (4,500 units × $7) - $20,250 - $3,500
= $7,750
Answer:
It is cheaper to buy the seats.
Explanation:
Giving the following information:
The company is currently operating at 100% capacity, and variable manufacturing overhead is charged to production at the rate of 60% of direct labor cost. The direct materials and direct labor cost per unit to make the bicycle seats are $8.00 and $9.00, respectively. Normal production is 50,000 bicycles per year. A supplier offers to make the bicycle seats for $21 each. If the bicycle company accepts this offer, all variable manufacturing costs will be eliminated, but the $30,000 of fixed manufacturing overhead currently being charged to the bicycle seats will have to be absorbed by other products.
Make in house= [8 + 9 + (9*0.6)]*50,000= $1,120,000
Buy= 21*50,000= $1,050,000
It is cheaper to buy the seats.
Answer:
total savings using CFL light bulbs = $47.09
Explanation:
We can compare the costs of 8,000 hours of lighting:
incandescent light bulbs
- you need 8 incandescent light bulbs to generate 8,000 hours of lighting = 8 x $0.70 = $5.60
- they will consume a total of 150 watts x 8,000 hours = 1,200 kWh x $0.05 per kWh = $60
- total cost = $5.60 + $60 = $65.60
CFL light bulbs
- you need one CFL light bulb to generate 8,000 hours of lighting = $5.71
- it will consume a total of 32 watts x 8,000 = 256 kWh x $0.05 = $12.80
- total cost = $5.71 + $12.80 = $18.51
total savings = $18.51 - $65.60 = -$47.09
Answer:
The correct answer is letter "C": Agglomeration advantages stem from knowledge spillover from one firm to another.
Explanation:
In Business, Agglomeration refers to the cluster of companies in one common physical area. Agglomeration is divided into two categories: <em>urbanization economies </em>and<em> localization economies</em>. Urbanization economies refer to businesses sharing the same physical area even if they are dedicated to providing different goods or services.
Localization economies, instead, refers to firms of the same industry being located in a common location. In such a scenario, companies can take advantage of the same pool of labor and the quick spread of ideas among entities or the knowledge spillover.
