He would have saved 898.75 if he would have payed the 50
Answer:
The company should make the components because incremental costs are $2 less than the purchase price
Explanation:
The cost of making each unit of component = Direct Labour + Direct Material + Variable Overhead*
*The overhead cost of $4 contains both a fixed and variable element. It has been mentioned that 25% of overhead cost is incremental i.e. it increases with each additional unit produced (marginal cost). The incremental cost is the variable element.
Variable element = $4 x 25% = $1
Fixed element = $4 x 75% = $3
Thus, the cost of making each unit of component = $5 + $2 + $1 = $8,
whereas the cost of purchasing each unit of complement is $10. Hence, the company should produce the component as it is less by $2 ($10 - $8) to produce than it is to purchase.
Answer:
$20,000
Explanation:
Allowance for uncollectible accounts will be 2% of its accounts receivable = 2% * 900,000 = $18,000
the balance of the Allowance for Doubtful Accounts after year-end = a credit balance of $2,000 + allowance for uncollectible accounts in year of $18,000
= $20,000
<u>Explanation:</u>
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growth_multiplier is 1.1
savings = 100
desc = "compound interest
"
# Place product of growth_multiplier and savings to year 1
Year 1 = growth_multiplier* savings
# Print
print(type(year1))
Now,
# Place addition of desc & desc
doubledesc will be desc + desc
# Print doubledesc
print(doubledesc)
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