Answer:
The warranty period is for three years.
Explanation:
A warranty is a promise a buyer receives from the seller that the latter will repair or replace the product should it develop defects within a stated period. Warranties are granted with specific conditions. The universal condition is that the defects in the product are a result of the manufacturing process and not the buyers' misuse. The defect must occur within a stated period.
In the case of XYZ, the stated period is three years. However, the seller has introduced another condition of "or 30,000 miles whichever comes first." For business reasons, and from market experience, the seller expects that XYZ will use the vehicle at an average rate of 10,000 miles per year. At this rate, the warranty will last for three years. Should the buyer use the vehicle at a faster rate than this, the 30,000 miles will be exhausted earlier, which will bring the warranty to an end. If XYZ uses the vehicle at a slower or the expected rate, the warranty will last for three years.
Answer:
Explanation:
X - number of units sold
Total cost for production = 1,500,000 + 1600X
Total cost for purchasing = 2000X
a. For 4000 units sold
Total cost for production = 1,500,000 + 1600 * 4000 = $7,900,000
Total cost for purchasing = 2000* 4000 = $8,000,000
In this case producing is cheaper. Therefore, it is better to produce
b. Y - break-even point
Then : 1,500,000 + 1600 * Y = 2000* Y
So 1,500,000 = 400 Y
Y = 3750
At №of units less than 3750 purchasing will be the better option
And above 3750 producing will be the better option
Answer:
However, Gilberto's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Gilberto lets them know how many workers he needs for each day of the week. In the short run, these workers are <u>VARIABLE</u> inputs, and the ovens <u>FIXED</u> inputs.
Explanation:
In the long run, all inputs are variable. E.g. in 5 years Gilberto might build his own pizza place and he will be able to make the kitchen as large as he wants.
But in the short run, some inputs are variable because they can be changed immediately, e.g. the number of workers changes on a weekly basis. While other inputs are fixed, and cannot be changed, e.g. Gilberto has a two yer lease contract for the ovens, so he will continue to use these ovens until the lease expires (in 2 years).
The long run and short doesn't depend on time, but on the ability of being able to change the inputs consumed by a business. The long run might represent 10 years for a company that signed a 10 year lease contract.
Answer:
Journal Entries
Date Account Titles and Explanation Debit Credit
April 30 Salaries expenses $4,800
($12,000/5) * 2
Salaries payable $4,800
(To record the Accrual of salaries expense)
May 30 Salaries Expenses
($12,000/5)*3 $7,200
Salaries payable $4,800
Cash $12,000
(To record the payment of salaries expenses)
