Answer:
($43,700)
Explanation:
38,000 units produced:
- Direct materials $
6.50
- Direct labor $6.60
- Variable manufacturing overhead $3.75
- Fixed manufacturing overhead $3.45
- total cost per unit = $20.30
outside supplier offers parts at $18 per unit
fixed manufacturing overhead is unavoidable
Alternative 1 Alternative 2 Differential
keep producing buy amount
Prod. cost $771,400 $0 $771,400
Purchase cost $0 $684,000 ($684,000)
<u>Unavoidable costs $0 $131,100 ($131,100) </u>
total $771,400 $815,100 ($43,700)
The financial disadvantage of purchasing the parts from an outside vendor = ($43,700)
The process used by Terry is known as Discounting.
<h3><u>
What is Discounting?</u></h3>
- A value obtained in the future is converted to an equivalent value received right away through the process of discounting.
- Discounting takes into account the relative value of a dollar received now against one received in 50 years, for instance.
- By converting future dollars into current dollars, the discounting process allows for the conversion of units of value over a range of time periods.
- Decision-makers utilize discounting to fully comprehend the costs and benefits of policies that have long-term effects.
Discounting is a method for calculating the gap between current and future values.
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Answer:
The answer is significantly.
Explanation:
Oligopoly is a market situation in which there are few sellers, selling similar goods and services and many buyers. The barriers to entry in this market in high. Example of a oligopoly market is OPEC.
The competition amongst the few sellers is high because they are selling the same thing and a change in price by one firm will significantly affect other firms in the industry. For example, if a firm reduces the price of its goods, this creates a price war and other firms to start reducing their price to match the lower price. And if another firm increases its price, consumers will switch to competitors
Answer:
Break-even sales in dollar value = $10,667
Explanation:
Since the company's operating income is $0, the company makes no profit and no loss. Therefore, the company's total sales is equal to total expenses. It means the company is in break-even point. However, as the variable expense is not given, we have to use contribution margin ratio to calculate the break-even sales.
We know,
Break-even sales in dollar value = Fixed expenses ÷ Contribution margin ratio
Given,
Contribution margin ratio = 45%
Fixed expenses = $4,800
Putting the values into the above formula, we can get,
Break-even sales in dollar value = $4,800 ÷ 45%
Break-even sales in dollar value = $10,667
An example of a virtual team is a group of employees who participate in a motorcycle riding group that meets outside of the company.
A virtual team, sometimes referred to as a remote team, is made up of individuals who communicate and work via technology like audio and video conferencing from geographically separate locations.
<h3>What is a Virtual Team?</h3>
A virtual team, sometimes referred to as a geographically dispersed team or a remote team, is a collection of individuals who communicate with one another online. Members of a virtual team typically reside in several geographic locations.
- Remotely working groups of coworkers are known as virtual teams. These coworkers communicate via tools like email, Slack, and Zoom while working remotely rather than in an office. These coworkers work together online and hardly ever interact in person.
- The same characteristics consistently appear in studies and lists: empathy, justice, listening and communication skills, sincerity, and decision-making. Teams are motivated and inspired by leaders.
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