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Zarrin [17]
2 years ago
8

Damon Industries manufactures 20,000 components per year. The manufacturing cost of the components was determined as follows:

Business
1 answer:
Shkiper50 [21]2 years ago
8 0

Answer:

d. a $10,000 decrease.

Explanation:

The computation of the impact on the income is given below:

In case of making the product

= Direct material + direct labor + variable manufacturing overhead  + rented

= $100,000 + $160,000 + $60,000 + $10,000

= $330,000

And, in case of buying the product

= 20,000 × $17

= $340,000

So there is a decrease of $10,000

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Frolic Corporation has budgeted sales and production over the next quarter as follows: July August September Sales in units 70,0
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Answer:

Explanation:

-------------------------------july-------August-----Sept

Sales(unit) - - - - - - - -70000 - - 83000 - - - - - -

Production(Units)----73250 - -84750--91750

October expected sales = 97000

Ending Inventory for August

Production 84750

Less: Sales 83000

Add: Begin Inventory (83000*25%) - - 20750

Ending Inventory 22500

September :

Production in Units 91,750

Add: Beginning Inventory

Working note) 22,500

Less: Ending Inventory

( 97000X25%) (24,250)

Budgeted Sales Units 90,000

8 0
2 years ago
A stock index is valued at $800 and pays a continuous dividend at the rate of 3% per year. The 6-month futures contract on that
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Answer:

Possible options:

A. 38

B. 40

C. 42

D. There is no arbitrage opportunity.

Answer is B

Explanation:

With the given data, the no-arbitrage futures price should be; 800e(0.025-0.03)*0.50 =798−Since the market price of the futures contract is lower than this price there is an arbitrage opportunity. The futures−contract could be purchased and the index sold.−

Arbitrage profit is 798 - 758 = 40

8 0
2 years ago
Zara's staff members regularly collect data from customers at its stores. This data is used to: a. decide the designs and styles
umka2103 [35]

The details are important for settling on the models and patterns (designs and styles) for Zara's goods for the Upcoming few seasons.

Option-a

<u>Explanation: </u>

The collection of data is described as the approach of objective analytical observations utilizing standard established techniques compilation, calculation and evaluation. On the basis of data obtained, a scientist will test his hypothesis. In many other situations, the collection of data is the key phase for science, regardless of the area.

Based on the information required, the method of data analysis is unique for various subject areas of study. The main aim of the collection of data is to ensure that accurate information is gathered for statistical methods so that information-driven analytical decisions can be taken.

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According to expectancy theory, the primary elements that determine how willing an employee is to work hard at tasks important t
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The expectancy theory is the theory that determines how motivated someone is. This consists of three elements, and for someone to be motivated, all of these should be on the high level. These primary elements include EXPECTANCY, INSTRUMENTALITY, AND VALENCE. Expectancy is believing that a certain level of effort will also result to a certain level of performance. Instrumentality believes that if the performance is successful then the outcome is expected to be what is desired. Valence is what the value the worker provides to an outcome.
3 0
2 years ago
Patti sells a painting that has a fair market value of $9,000 to James for $6,000. Which of the following statements about the t
Ahat [919]

Answer:

<u>II and III</u>

Explanation:

According to the IRS tax guidelines this two scenario matches them correctly;

The statement that James is Patti's brother, <em>would imply</em> that he (James) would not recognize any income from the sale to be deducted as tax.

Second, assuming Patti is an art dealer and she sold the painting to James because she needed cash quickly, James would not recognize any imputed income from the sale.

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