Answer:
It is more profitable to continue to rework the phones and sell them.
Explanation:
Giving the following information:
Signal mistakenly produced 1,000 defective cell phones.
<u>The $65 per phone is a sunk cost. It will remain on both decisions, therefore, we will not take into account to make the decision.</u>
Sell as it is:
Income= 33*1,000= $33,000
Rework:
Costs= 88*1,000= $88,000
Sales= 144*1,000= $144,000
Total gain= $56,000
It is more profitable to continue to rework the phones and sell them.
Answer:
The correct answer to the following question will be Option D (Financial distress and agency costs).
Explanation:
- A cost of an agency is a form of company's internal expense that comes from an employee working on behalf of action of the principle. Agency costs usually occur from core redundancies, confusion, and delays, such as shareholder and management conflicts of interest.
- Distress expense applies to the expenses that a financially distressed company faces beyond the business cost, such as increased capital expenses. Troubled companies tend to have a tougher time fulfilling their financial responsibilities, which turns into a higher chance of default.
- When evaluating the company's value as a feature of market structure, the present value of the tax shield gain is balanced by the current value of the anticipated financial distress and agency expenses, which results in an ideal internal market structure.
Therefore, Option C is the right answer.
Date - Account Title - Debit - Credit
Feb 13
Cash - $10,975 -
Sales - - $10,000
Sales Tax Payable - - $975
What is a Drop-down menu?
A drop-down list (abbreviated drop-down, or DDL; also known as a drop-down menu, drop menu, pull-down list, picklist) is a graphical control element, similar to a list box, that allows the user to choose one value from a list.
When a drop-down list is inactive, it displays a single value. When activated, it displays (drops down) a list of values, from which the user may select one.
When the user selects a new value, the control reverts to its inactive state, displaying the selected value. It is often used in the design of graphical user interfaces, including web design.
To learn more about Drop-down menu: brainly.com/question/17116743
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Answer:
The answer is "$5500".
Explanation:
Analysis Differential:
Make Buy
Cost of variable 
Fixed- cost 
Purchasing cost 
Cost of opportunity 
Total relevant cost 
Increasing operating income 
