Answer:
Calculation of Avoidable Cost:
Direct Materials $3.40
Direct Labor
8.00
Variable manufacturing overhead 8.50
Supervisor's salary 3.90
Total Avoidable Cost $23.8
Note: Depreciation is a sunk cost and not relevant for decision making.
General Fixed Overhead will remain the same irrespective of decision. Hence, not relevant for decision making.
Evaluation of offer:
Loss on Sale from outside supplier (26.70-23.8)*15,500 $(44,950)
Additional Segment Margin earned $27,500
Financial Advantage/(Disadvantage) $(17,450)
Hence, annual financial disadvantage for the company as a result of buying part U16 from the outside supplier = $17,450
Answer:
news items
Explanation:
Public relations refers to the communication that the company's have with the public through media outlets, which is why they are perceived as news items. This being the case, the public sees this news item and pays attention to this alone, as opposed to other promotional communication methods such as newspapers and articles where various information is cluttered together making it difficult to focus on one thing alone.
Answer:
d. Organizational environment
Explanation:
Indeed, organizational environmental studies how a particular organization is affected by it's operating environment, and how the organization functions under that environment.
Note also that the organizational environment is further divided into:
- the internal environment and
- the external environment
Put simply, the internal environment consist of factors that affect the organization from within; which are controllable. However, the external environment consist of factors such as political instability, etc that can affect the organization and beyond the control of the organization.
Answer:
The correct answer is a) economies of scale
Explanation:
Economies of scale are when a company increases the production or associate with other company, to obtain a better price to reduce the cost of production. This happens because costs are spread over a larger number of goods.
Example:
Company A, require apples to produce his final product. And the provider has a price for each apple, however, if you buy more than 100, he gives you a discount of 5%. Company A can´t afraid this, because it just needs 50 apples per production.
The solution for the company is trying to expand the market, become efficient, to duplicate his production and obtain the discount. Or associate with Company B that needs 50 apples too, to obtain the discount and reduce his cost. (1 big purchase is better than 2 small purchases)
Answer:Accept Option B
Explanation: The concept of Future Value helps to to critically analyze investment opportunities so you can make decisions among options amd most importantly pick the project that yields the highest return.
The Future value of project A after discounting is $881.4 and for project B is $10,487.8
This is because of the difference in the amount invested.
The difference in return is $10,487.8-$881.4 = $9,606.4
