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timama [110]
4 years ago
10

SparklingLeaves is one of the major suppliers of automobile tools to StanMotors, a leading automobile company. Many of the tools

are customized to meet the specific needs of StanMotors and hence have little other value. In return, StanMotors has agreed to make SparklingLeaves its sole supplier of automobile equipment for a period of 15 years. This illustrates:
Business
1 answer:
algol [13]4 years ago
5 0

Answer:

D) credible commitment

Explanation:

This is basically an exclusive supplier agreement since Sparkling Leaves and Stan Motors signed a contract that lasts 15 year, and it states that Sparkling Leaves will provide automobile tools only to Stan Motors and Stan Motors will only purchase the tools they need from Sparkling Leaves.  

Such a contract needs a serious and credible commitment between both parties, since it lasts several years and it binds both companies to work together exclusively for that period.

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Unlike goods, services:
harina [27]

Answer:

(D) are more heterogeneous and less standardized and uniform

Explanation:

Since services have greater heterogeneity, there is some variability of inputs and output in services, so they tend to be less standardized and uniform than goods.

7 0
3 years ago
A company has already incurred $8,400 of costs in producing 6,600 units of Product XY. Product XY can be sold as is for $26 per
olga nikolaevna [1]

Answer

The company should sell XY as it is because processing it further would reduce its income by $(33,000)

Explanation

<em>A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost. </em>

Product A                                                                $

Additional revenue ( 31 -26)×  6,600               33,000

Further processing cost (10×  6600)             <u> ( 66,000)</u>

Loss from further processing (100)               <u>(33,000)</u>

7 0
3 years ago
Quantity Demanded Price ($)
Aleksandr-060686 [28]
The wine bottle is $200 so the demanded price would be 210! Hope this helps.
5 0
4 years ago
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed wh
Genrish500 [490]

Answer:

c. $1,740 F

Explanation:

The $\text{material quantity variance}$ is the measure of the $\text{difference}$ between the amount of materials that is used in actual for the production process and the amount of the material that was expected or estimated to be used in the production process.

It is given that the Snuggs Corporation applies the variable overhead on direct labor hour basis.

Therefore, the SQ = 2.8 ounces per unit x 1100 units =   3080 ounces

The materials quantity variance = (AQ - SQ) x SP

                                            = (2790 ounces - 3080 ounces) x $ 6 per ounce

                                            = (-290 ounces) x $ 6

                                            = $ 1740 F

4 0
3 years ago
Management of the Swifty Corporation would like the Food Division to transfer 10200 cans of its final product to the Restaurant
Hunter-Best [27]

Answer:

$35

Explanation:

The minimum transfer price is 35$ should be accepted by the food division. Minimum transfer price must be minimum and equal to variable cost only .However it can be greater than variable cost if division incurred some incrimental fixed cost. If company is not incurred any extra fixed cost then transfer price must be equal to variable cost.

Normal fixed cost is not considered for transfer price within the division of company. According to general rule transfer price within the same company by one division to another division should be equal to only variable cost or marginal cost. So answer is 35$ which is variable cost of food division.

3 0
3 years ago
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