Answer: See explanation
Explanation:
a. Predetermined overhead rate will be:
= Administrative costs/Number of users
= 739,500/25,500
= $29 per user
Administrative costs applied to Toot will be:
= Number of users x Predetermined overhead rate
= 8900 x 29
= $258100
Administrative costs applied to Tix will be:
= Number of users x Predetermined overhead rate
= 16600 x 29
= $481400
b. For Toot
Revenue: $1,450,000
Less: Engineering cost: $402,500
Less: Administrative cost: $258,100
Profit = $789400
For Tix:
Revenue: $1,200,000
Less: Engineering cost: $521,875
Less: Administrative cost: $481,400
Profit = $196725
Answer:
The correct option is D. integrated cost leadership/differentiation
Explanation:
Integrated cost leadership/differentiation is a business level strategy where differentiated products are offered in market at low cost.
Differentiated product signifies the unique characteristics the customer values and cost leadership signifies that the product is offered at the lower-cost, i.e., at a margin just above average costs.
It is useful in gaining wide customer base especially in a global frontier.
Answer:
$812.49
Explanation:
Given that
Sale value of ordinary annuity = $4,947.11
Time period = 8 years
Interest rate = 6.50%
So by considering the above information, the annual annuity payment is
$4,947.11 = Annual annuity payment × Present value annuity factor at 6.5% for 8 years
$4,947.11 = Annual annuity payment × 6.0888
So, the annual annuity payment is $812.49
Answer:
$400
Explanation:
From the question, there is a butterfly spread when a trader buys 100 options with strike prices $60 and $70 and sells 200 options with strike price $65.
The maximum gain is the point where both the stock price and the middle strike price are equal, i.e. equal to $65. At that point, the options payoffs are respectively $500, 0, and 0. By implication, the total payoff is $500.
The set up cost of the butterfly spread can be calculated as follows:
Setup cost = ($11×100) + ($18×100) – ($14×200)
= 1,100 + 1,800 – 2,800
Setup cost = $100
Net gain = Options payoffs – Setup cost = $500 - $100 = $400
Therefore, the maximum net gain (after the cost of the options is taken into account) is $400.
Answer:
absolute on grain: neither, both produce 10
comparative grain: Italy as renounce to less tonds of dates: 0.5 to 2.5
absolute dates: Niger 25 to 5
comparative dates: Niger as it cost 0.4 tonds of grain to produce 1 ton of dates.
Explanation:
For the absolute, we will check which yield the better number.
Fot the comparative, we will check the opportunity cost:
<em>output/potential output of another product</em>
<em />
opp cost grain in Italy: 5/10 = 0.5 tons of dates
opp cost grain in Niger: 25/10 = 2.5 tonds of dates
opp cost dates in Italy: 10/5 = 2 tonds of grain
opp cost dates in Niger 10/25 = 0.4 tonds of grain
