The answer is $48.
The seller of product a has no idle capacity and can sell all it can produce at $60 per unit. outlay (variable) cost is $12. $48 is the opportunity cost, assuming the seller sells internally
It is calculated as follows:
Opportunity cost= Production cost- Outlay cost
= 60-12
=$48
Opportunity costs represent the potential benefits which any individual or investor, or any business misses out on when choosing one alternative over another.
Because the opportunity costs are generally unseen by definition, they can be easily overlooked. Understanding of the potential missed opportunities when any business or any individual chooses one investment over another investment allows for better decision making.
To know more about opportunity cost here:
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Marketing web Design CaffeGustoso to focus on providing information about its products and new locations to promote its offline sales.
Explanation:
Video Marketing includes the process of posting digital videos on social website in order to promote a product or a service.
The only product that Caffe Gustoso has is the coffee so the suggestion will be to create a series of entertaining videos to increase the consumer engagement with coffee and to provide information related to its location with the motive to boost online sale.
Thus we can say that the initiative will be to -Marketing web Design Caff eGustoso to focus on providing information about its products and new locations to promote its offline sales.
Answer:
Each grilled cheese costs $1.25
Explanation:
Giving the following information:
Her income is $50 a week. Hamburgers cost $4, and she consumes 10 of them. She consumes eight grilled cheese sandwiches.
To calculate the price of the grilled cheese sandwiches, we need to use the following equation:
Income= cost of hamburgers*number of units + cost of grilled cheese*number of units
50= 4*10 + x*8
10=8x
$1.25= x= grilled cheese
Answer:
Allocated MOH= $252,000
Explanation:
Giving the following information:
Estimated overhead= 240,000
Estimated machine hours= 300,000
Actual machine hours for the year were 315000 hours.
First, we need to calculate the estimated overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 240,000/300,000= $0.8 per machine hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 0.8*315,000= $252,000
Answer: Please see below for answers.
Explanation:
Variable costs are referred to as costs incurred to a company which change as the volume of production by the company or business changes that is when the volume of production increases, the costs increases , and decreases with decreased production.
Fixed costs are expenses incurred to a company which do not change in relation to the volume of production by the company or business that is when the volume of production increases or decreases, the costs remains the same.
a. Supervisor of the Drilling Department----- Fixed cost
b.Oil used to lubricate drill press machines---- Variable cost
c.Propane for forklift trucks used to move the material from the Drilling Department to the Assembly Department---- Variable cost
e.Natural gas used to heat the plant----- Variable cost
f.Security guard---- fixed cost s
g.Insurance on factory building----- Fixed costs
h.Electricity to power drill press machines---- Variable costs
.i Rent of factory building-Fixed costs
