Answer:
If the offer is accepted, the income will decrease in $7,500.
Explanation:
Giving the following information:
Harrison Ford Company has been approached by a new customer with an offer to purchase 10,000 units of its model IJ4 for $5 each.
Unitary variable cost:
Direct Materials= $1.75
Direct Labor= $2.50
Variable Overhead= $1.50
1) Because it is a special offer and there is unused capacity, we will not have into account the fixed costs.
Accepting the offer:
Relevant cost= Unitary variable cost
Relevant cost= 1.75 + 2.5 + 1.50= $5.75
Relevant benefits= $5
2) Effect on income= 10,000*5 - 10,000*5.75= -$7,500
If the offer is accepted, the income will decrease in $7,500.
Answer: 20,714,286 shares
Explanation:
Find out the number of shares that was repurchased:
= Amount raised / stock price
= 240,000,000 / 7
= 34,285,714 shares
Number of shares after recap:
= Number of shares before recap - Shares repurchased
= 55,000,000 - 34,285,714
= 20,714,286 shares
A) Raul fixes cars.
The other business people offer a product. Taylor provides car parts, Jared provides toys, and Tina provides food. Raul offers a service, he does not provide you with any good, he provides a service to a good you already own.
Answer:
Buy Camera 2.
Explanation:
PACED, decision making process is used to make decisions when alternative options are available. In the given case Melissa has two option either to buy camera 1 or camera 2.
The steps for PACED decision making process are :
1. Define the Problem
2. List Alternatives
3. Identify Criteria
4. Evaluate Alternatives
5. Make a Decision
1. To buy Camera 1 or Camera 2
2. Camera 1 or Camera 2
3. Which ever camera has more features will be selected
4. Camera 2 has better features than camera 1
5. Buy Camera 2.
Answer:
B. Investment Y has a higher present value.
Explanation:
The cash inflows are given in the question for Investment X and Investment Y
Plus we know that the cash inflows and the number of years has an indirect relation
That means if the cash flows are the same for year 1 and 2 and in year 3 and year 4 so year 1 and year 2 present value would be higher as compared with the last year present value
Since in the question Investment Y has higher cash inflows in starting year but in Investment X has higher cash inflows in last year that interprets Investment Y has a higher present value
