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iren [92.7K]
2 years ago
14

Accounting has estimated that 20% of the fixed overhead costs currently assigned to QX100 would not be needed if the company cho

se to purchase the part from an outside supplier. Preston currently has the option of purchasing the part from an outside supplier at $16.00 per unit. Based solely on a short-run financial analysis, the maximum price that Preston should be willing to pay the outside vendor for each unit of QX100 is:________
Business
1 answer:
Maurinko [17]2 years ago
7 0

Answer: $15.80

Explanation:

The preston Industries, Inc. currently manufactures part QX100, which is used in several products produced by the company. Monthly production costs for 10,000 units of QX100 are as follows:

Direct materials= $80,000

Direct labor= $20,000

Variable overhead costs= $50,000

Fixed overhead costs= $40,000

Total manufacturing costs= $190,000

Accounting has estimated that 20% of the fixed overhead costs currently assigned to QX100 would not be needed if the company chose to purchase the part from an outside supplier. Preston currently has the option of purchasing the part from an outside supplier at $16.00 per unit.

Based solely on a short-run financial analysis, the maximum price that Preston should be willing to pay the outside vendor for each unit of QX100 is $15.80

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Suppose an economy currently is at long-run equilibrium point E, with full-employment output (Y*) and price level P*. Given the
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Answer:

Consider the following calculations

Explanation:

A - Increase in oil prices decreases SRAS (SRAS shifts to the left) and increase in consumer confidence will increase AD (AD will shift to the right).

B - Household wealth falls, as a result AD will decrease (AD shifts to the left) and firms expect the price level to fall - decrease in firm's expectations about future price will cause forms to increase aggregate supply now. As a result, SRAS shifts to the right.

C - Federal reserve cuts interest rate, Therefore cost of borrowing decreases, investment increases, aggregate demand increases. AD shifts to the right.

New technology makes workers more productive. Aggregate supply increases. SRAS shifts to the right.

D - Both AD and SRAS shifts to the left.

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2 years ago
Simonne is developing a program. She names a variable %due, but then recognizes that this name violates a variable naming conven
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Answer:

Variables names cannot include a percent sign (%).

Explanation:

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2 years ago
If revenues exceed expenses for the accounting period, the retained earnings account: a. Will have a lower balance after closing
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Answer:

The correct answer is letter "D": All of these answer choices are incorrect.

Explanation:

Retained earnings are the part of the company's net profits which does not pay out as dividends to shareholders. The company keeps this money in the business to reinvest it or uses it to pay off a part of its debt.

When revenues of a company exceed the expenses of a period, the firm has net income. Net income is reported as a credit entry. Thus, the retained earnings will have a credit balance prior to closing.

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2 years ago
You are the manager in charge of setting the strategy for a new frozen yogurt company. Which of the following questions would be
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Answer:

B) How have consumer preferences in frozen yogurt flavors changed in the last five years

Explanation:

During the analysis phase of the AFI strategy framework we need to evaluate that how have consumer preferences in frozen yogurt flavors changed in the last five years. Since we know that AFI framework analysis we seek the planning analysis, formulating and implementation. Companies always go back to reassess their strategy based on changes in the environment.

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After reading the article, select the statements that are correct. Choose one or more: A. The cost-of-living adjustment for 2020
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  • B. The former program trustee argues that the current inflation measure overcompensates seniors since it ignores the substitution effect.
  • C. According to advocates for seniors, the 2020 COLA is not enough to compensate for rising healthcare costs.
  • D. Elizabeth Warren has proposed using a new inflation measure that outpaces the current one used.

Explanation:

The article is, ''<em>Social Security checks to rise modestly amid push to expand benefits '' </em>by<em> Associated Press. </em>

Blahous is a former program trustee who believes that the current inflation adjustment rate at which Social security is increasing is overcompensating seniors because it does not take into account that seniors could be switching to buying cheaper products which is the Substitution effect.  

Advocates and the seniors themselves have complained that the 2020 COLA is not enough to meet their current needs especially given the rising cost of healthcare.

Elizabeth Warren and Bernie Sanders both proposed using a new measure for inflation that will adequately compensate the seniors because it outpaces the current one used.

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2 years ago
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