Answer:
<u>Part 1</u> There will be a disadvantage for 30,000 as there are allocated cost into product X
<u>Part 2 </u>TRUE
As performing the order will not renounce to selling in the local market. When the order comiptes with the normal capacity(there is no idlbe capacity to use) it will have as opportunity cost the contribution if sold in the local market.
Explanation:
![\left[\begin{array}{cccc} &$Current&$Discontinued&$Differential\\$Revenues&400,000&&-400,000\\$variables&-320,000&&320,000\\$Contribution&80,000&&-80,000\\$avoidable fixed cost&-50,000&&50,000\\$allocate fixed&-70,000&-70,000&\\$Result&-40,000&-70,000&-30,000\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D%20%26%24Current%26%24Discontinued%26%24Differential%5C%5C%24Revenues%26400%2C000%26%26-400%2C000%5C%5C%24variables%26-320%2C000%26%26320%2C000%5C%5C%24Contribution%2680%2C000%26%26-80%2C000%5C%5C%24avoidable%20fixed%20cost%26-50%2C000%26%2650%2C000%5C%5C%24allocate%20fixed%26-70%2C000%26-70%2C000%26%5C%5C%24Result%26-40%2C000%26-70%2C000%26-30%2C000%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Revenue 10,000 x 40 = 400,000
Variable Cost: 100,000 x 32 = 320,000
Avoidable: 120,000 - 70,000 = 50,000
Answer:
b. protects the current shareholders against a dilution of their ownership interests.
Explanation:
Shares are ownership interests that are owned by business owners and measures the degree to which an individual has a stake in a company.
Preemtive right occurs when a shareholder has a right to purchase a particular portion of newly issued shares.
For example if an individual has 40,000 shares and additional 250,000 shares are issued, he can have the right to purchase an additional 30,000 of the new shares.
The preemtive right prevents dilution of ownership interests by ensuring old stockholders have a stake in newly issued shares.
Full question:
Kelly Addison is a designer clothing buyer for a chain of department stores. She has gone through several negotiation certification programs and is considered an expert negotiator by her peers.
-When Kelly sees value in a product but does not want to pay the offered price, she often offers to split the difference between what she wants to pay and what the seller wants. Which of the following would be most likely to stall the negotiations with Kelly?
A)accepting the offer to split the difference
B)making another pricing counteroffer
C)offering better delivery and payment terms if she matches the asked price
D)standing firm on price but offering a discount for the second order
Answer:
<u>B) making another pricing counteroffer</u>
<u>Explanation:</u>
We are told that Kelly Addison is an expert negotiator and has received several negotiation certification programs. She also has a policy in which whenever she sees value in a product but does not want to pay the offered price, she splits the difference between what she wants to pay and what the seller wants.
Thus, making another pricing counteroffer <u>may stall the negotiations with Kelly.</u>
The answer to this question is bonds. Bonds are an
investment type where in investors’ gains a fixed-income over their
investments. Bonds are less risky because the return of investment is in a
fixed rate and this is less vulnerable to price swings in the stock market.
