Answer:
Marginal cost: $13.70
Missing question:
Additional cost from increasing their output by one unit.
Explanation:
The company will inccur only the variable cost as the fixed cost are within the relevant range:
Direct materials $ 6.85
Direct labor $ 3.60
Variable manufacturing overhead $ 1.25
Sales commissions $ 1.50
Variable administrative expense $ 0.50
Total variable cost: $13.70
producing an additional unit will genrate marginal cost for $13.70
Answer:it ignores cash flows following the payback period
Explanation:
The payback method of budgeting does not consider inflows of cash that occur beyond or following the payback period, thus ignoring the profitability of one project as compared to another in the sense that one project may be more valuable than another based on future cash flows.
Also, Many capital investments provide complexity of cash flows as a result of investment returns over a period of many years, which also does not align with Payback method , because of this limitation, many businesses have adjusted by using their discretion to override this rule.
Answer:
b. Net Income
e. Cash from Investing Activities
Explanation:
Calculation to determine Which of the following items would be increased by the sale of the marketable securities
Using this formula
Gain from investment = Selling price of the security - Value of the security
Let plug in the formula
Gain from investment= $93,000 - $85,000
Gain from investment= $8,000
Based on the above calculation The sell of marketable security will INCREASE CASH which means that CASH FROM INVESTING ACTIVITIES will increase and NET INCOME will increase.
Therefore the items that would be increased by the sale of the marketable securities are :
b. Net Income
e. Cash from Investing Activities
Answer:
If Meekertown allows free trade, then it will import meekers.
Explanation:
Meekertown would have no choice but to import meekers, since its import cost ($ 21) would be much less than its local production cost ($ 35). In other words, Meekertown would find it much more expensive to manufacture its own products than simply buying them in markets abroad. Therefore, importing would be much more beneficial to its economy.
