Answer:
If the company makes the units in-house, it will save $280,800.
Explanation:
First, we need to calculate the incremental cost of making the units. <u>We will take into account only the avoidable overhead costs, fixed costs will remain constant in both options (make or buy).</u>
<u></u>
Direct materials= 4
Direct labor= 8
Avoidable overhead= 9*0.2= 1.8
Total variable cost= $13.8
Incremental cost= 54,000*13.8= $745,200
<u>Now, the total cost of buying:</u>
Buy= 54,000*19= $1,026,000
If the company makes the units in-house, it will save $280,800.
Answer:
c. 750 units
Explanation:
The computation of the inventory position is shown below:
Inventory position (IP) = Number on‐hand inventory + Number of scheduled receipts - number of backorders
= 700 units + 150 units - 100 units
= 750 units
We simply added on hand inventory units, scheduled receipts units and deducted the back orders units so those correct units could find out
Answer:
The answer is: C)Economists are usually not allowed to conduct experiments, and so they must rely on natural experiments offered by history. This is only partially true. Option B could also be considered a possibility but the term "True Science" is not properly used. In order to consider that answer the term would need to be changed to "Natural Science".
Explanation:
Economics is a social science like law and anthropology,. It is divided into 2 different fields: Macroeconomics and Microeconomics. They rely heavily on interpretation and qualitative research methodologies, but also use statistics and mathematical theories to test hypotheses and forecast trends. On the other hand, natural sciences like physics rely on the scientific method to test their hypotheses.
Macroeconomics deals with the economy of a whole country or region. Since their are too many variables involved in an economy, it is impossible to conduct a Macroeconomic experiment. Testable hypotheses don´t exist in Macroeconomics. No one can guarantee if and how plan A or plan B will make the American economy grow at a 3% yearly rate.
But the scientific method can be applied in Microeconomics (studies the actions of an individual unit). It is possible to conduct quantitative studies that produce verifiable and retested results.
Answer:
$5,775
Explanation:
The computation of the interest payment is shown below:
= Note payable amount × rate of interest × number of months ÷ total number of months in a year
= $110,000 × 9% × 7 months ÷ 12 months
= $5,775
We simply multiplied with the note payable , interest rate, and the given number of months to find out the interest expense
And, the seven months is calculated from June 1, 2013 to December 31, 2013
Answer:
Cost of new machine:
= List price of new machine - Trade allowance + Fair value of old machine
= $16,000 - $9,000 + $6,000
= $13,000
Therefore, the journal entry is as follows:
Cost of new machine A/c Dr. $13,000
Accumulated depreciation (Book Value) A/c Dr. $4,000
Loss on exchange of machine A/c Dr. $2,000
To Old Machine (Book Value) $12,000
To Cash (16,000 - 9,000) $7,000
(To record the machine exchange)