Answer:
The correct answer is letter "C": Profitable product lines may be dropped.
Explanation:
The decision of making a product in-house or relying on an outsourcing manufacturer is evaluated mainly by comparing the costs that handling a new production line carries. While outsourcing can save a company a great amount of money in <em>labor, equipment, materials, </em>and <em>knowledge</em>, quality control is not managed directly.
However, <em>a new line of components in-house implies incurring in most costs that could conflict the production of existing profitable product lines that could see their numbers reduce gradually until the product drops.</em>
Answer:
A, B, and D
Explanation:
According to my research on production optimization, I can say that based on the information provided within the question all of the answers provided except for improved wing-making technology would maximize the possible number of pizzas produced. This is because each of these answers provides a method of producing more pizza in the same time frame as before.
I hope this answered your question. If you have any more questions feel free to ask away at Brainly.
The question incomplete! The complete question along with answer and explanation is provided below.
Question:
Eagle Life Insurance Company pays its employees $.30 per mile for driving their personal automobiles to and from work. The company reimburses each employee who rides the bus $100 a month for the cost of a pass. Tom, in his Mazda 2-seat Roadster, collected $100 for his automobile mileage, and Mason received $100 as reimbursement for the cost of a bus pass.
a. What are the effects of the $100 reimbursement on Tom's and Mason's gross income?
b. Assume that Tom and Mason are in the 24% marginal tax bracket and the actual before-tax cost for Tom to drive to and from work is $0.30 per mile. What are Tom's and Mason's after-tax costs of commuting to and from work?
Explanation:
a.
For Tom:
He is required to include the $100 in gross income therefore, he would have to pay after-tax cost on the reimbursement.
For Mason:
He is not required to include the $100 in gross income due to qualified transportation fringe.
b.
For Tom:
Marginal tax = 24%
The after-tax cost of commuting = 0.24*$100 = $24
The before-tax cost of commuting = $0 (since he was reimbursed)
For Mason:
The after-tax cost of commuting = $0
The before-tax cost of commuting = $0 (since he was reimbursed)
Answer:
<em>If two similar properties are for sale, a buyer will purchase the cheaper of the two</em>
Explanation:
This principle states <em>a property's maximum value is usually determined by the cost of purchasing an equivalent substitute property having the same usage, design, and income.</em>
For instance, why would someone pay $1,000,000 for an apartment when they could buy a different but equally desirable house for just $750,000 in the same area?
Answer:
The answer is A.
Explanation:
Out of all the options, only option A is the odd one out. Discount rate for determining net present value of an investment is never dependent upon the present value of the proposal's future cash flows.
Discount rate is dependent upon option B because for selecting a particular investment, alternative investment opportunities must have been considered and if the discount rate for alternative investment was better, it would have been preferred.
Also for Option C. Discount rate for risky investment will be different from the less risky.
It is also dependent upon option D because the cost of equity is always higher than the cost of debt. So it will be different.
