Answer:
By producing the starters the company will save $20,000 per year.
Explanation:
production costs
direct materials $3.10 per unit
direct labor $2.70 per unit
supervision $60,000
depreciation <u>$40,000</u>
variable manufacturing overhead $0.60 per unit
rent <u>$12,000</u>
total production cost $9.20 per unit
The engineer is wrong because he is considering fixed costs like depreciation and rent that should not be included because they are independent on whether this project is approved or not. Once you take away depreciation and rent, the cost per unit will fall by $1.30 [= ($40,000 + $12,000) / 40,000 units].
Since the production cost = $9.20 - $1.30 = $7.90, which is lower than $8.40 which is the purchase cost, the company should start producing the starters at least until its sales bonce back.
By producing the starters the company will save ($8.40 - $7.90) x 40,000 units = $20,000 per year
Answer:
a. increasing job enrichment by establishing client relationships
Explanation:
The job enrichment is the technique for motivation which is given by the business organization with the view that the employee performs his best by giving him additional responsibilities so that the organization can achieve its targets in an efficient and effective manner.
The self -reinforcement is that technique for motivation in which the employee motivates himself so that he is able to work in the best manner.
The job rotation is that technique for motivation in which the employee assigned the two or more tasks in different rotations
Job specialization means that the person who has the interest will take that department. Example - marketing, finance, human resource
The job feedback is given by the employee regarding the salary package, working environment, benefits, etc
Hence, in the given situation the most appropriate option is a.
The government could decrease income tax so people have more disposable income to spend on goods and services and therefore increase AD. They could also increase government expenditure to increase AD.
(since AD=C+I+G+(X-M))
Answer:
$61.60
Explanation:
Equity funding need = Projected assets - Projected liabilities - Current equity - Projected increase in retained earnings
Equity funding need = $2,739 - $561 - $1,980 - $136.40
Equity funding need = $61.60
<u>Workings</u>
Projected assets = (Current assets + Fixed assets) * 1.10 = 820+1,670 * 1.10 = $2,739
Projected liabilities = Current liabilities * 1.10 = 510 * 1.10 = $561
Current equity = Current assets + Fixed assets - Current liabilities = 820 + 1,670 - 510 = $1,980
Projected increase in retained earnings = Sales*5% * 1.10 = $2,480*5% * 1.10 = 124*1.10 = $136.40
Answer:
Explanation:
In order to calculate he present value or worth of this bond we woulñd have to make the following calculations:
Face value (FV) $ 1,000.00
Coupon rate 8.50%
Number of compounding periods per year 2
Interest per period (PMT) $ 42.50
Number of years to maturity 8
Number of compounding periods till maturity (NPER) 16
Market rate of return/Required rate of return per period (RATE) 5.00%
Therefore, Bond price= PV(RATE,NPER,PMT,FV)*-1
Bond present worth=$918.72
The present value or worth of this bond is $918.72
