Answer:
We can say the rate is close enought to 14%
Explanation:
tthe IRR will be the rate at wich the NPV is zero
The cash flow are an annuity of 4,120 for 6 years
NPV = present value of cash flow - investment
0 = PV of annuity - investment
0 = PV of annuity - 16,000
PV = 16,000
C 4120
time 6
rate IRR
We divide the PV by the annuity to get the annuity factor
16,000 / 4,120 = 3,88349
We can look into the annuity table for a factor at time = 6 close to this figure
we have
14% factor of 3.889
15% factor of 3.784
We can say the rate is close enought to 14%
Answer:
$15.34
Explanation:
The formula and the computation of the predetermined overhead rate is shown be
Predeterminer overhead rate = Manufacturing overhead ÷ direct labor hours
where,
Manufacturing overhead is
= $359,860 + $8,300
= $368,160
And, the direct labor hours is 24,000
So, the predetermined overhead rate is
= $368,160 ÷ 24,000
= $15.34
Answer:
Sunk cost
Explanation:
-Incremental cost is the total cost of producing an additional unit.
-Sunk cost is a cost that has already been paid and that it is not possible to get it back.
-Out-of-pocket cost is a cost that requires a direct payment in the actual period.
-Opportunity cost is the cost of not receiving a benefit when you choose an alernative over another one.
-Period cost is a cost that is not associated with the production of goods.
According to this, the answer is that the $14 per unit is a sunk cost because the company has already spent that manufacturing the products and it is not able to recover that money.
Answer:
Transfers traditional internal activities to outside vendors.
Utilizes the efficiency which comes with generalization
Explanation:
Outsourcing can be regarded as a business practice which involves hiring a party from outside of the company so that the party can perform particular services as well as creation of goods which traditionally are been performed in-house by the employees and staff of the own company.Outsourcing helps in cost-cutting measure
It should be noted that Outsourcing ;
✓Transfers traditional internal activities to outside vendors.
✓Utilizes the efficiency which comes with generalization.
