Answer:
b. $490,000
Explanation:
Total cost refers to the summation of all costs that is expended during production processes of certain products, which is made up of prime cost, overhead cost, etc.
Total cost = Prime cost + Overhead cost
Where,
Overhead cost = Setup [1,000 × $75 per setup] $75,000 + Machine hours [1,900 × $50 per machine hour] $95,000
Overhead cost = $170,000
Prime cost = $320,000
Therefore,
Total cost = $320,000 + $170,000
Total cost = $49,000
Answer:
The answer is: a
Explanation:
Ethics refer to moral values which govern a person or in this instance, an organisation. Business ethics encompasses the use of appropriate business policies and practices by companies when handling controversial matters such as corporate social responsibility, bribery, workplace discrimination and so on. These policies and practices are governed by the company's values. ABC company has a dismal code of ethics when it comes to their overseas production. The company is enjoying low cost production at the expense of its employees working under hazardous conditions with very little pay. These employees will potentially suffer long-term illness as a result of their work and they would not be able to afford treatments or requisite medication. These actions by ABC company are morally unjust and therefore not ethical in the lieu of their operations.
Answer:
Provided in Explanation
Explanation:
This is a very general question however I’ll try to answer it to the best of my knowledge.
If I use my own assumptions then these will be the Projections:
Selling Price $79.99 Selling Price $69.99
Cost of Sales/unit $40.00 Cost of Sales/unit $40.00
Expenses/unit $15.00 Expenses/unit $15.00
Demand @ $79.99 1000 Demand @ $69.99 1200
Sales $79,990.00 Sales $83,988.00
Cost of Sales $40,000.00 Cost of Sales $48,000.00
Expenses $15,000.00 Expenses $18,000.00
Profit $24,990.00 Profit $17,988.00
The final decision however relies on the Price Elasticity of the Product. If the Product is Price elastic then lowering the Price will lead to a significant rise in Demand. However if the Product is Price inelastic then lowering the Price will not lead to a significant rise in Demand and thus profit margins will be lowered. If the Product is Price inelastic then it is better to increase prices in order to gain more profits. In the case of Unit Elasticity the change in Demand will be at the same proportion as price change so it won’t be of any use to change the Price.
Answer:
C)
In order to use the Cost-Benefit Principle correctly we need to compare the marginal benefit of the new spending, which is $25 million, with the marginal cost of the new spending, which is $50 million. This new spending makes no economic sense.
Explanation:
The cost-benefit principle in accounting states that the additional benefit must outweigh additional cost in an accounting system.
Spending of $250 million is giving $400 million revenue. The new proposal of spending $300 million to get $425 million implies we are spending extra $50 million to make extra $25 million.
This is not a good investment according to the cost-benefit principle.
The correct answer would be, Focus on research and development as a form of non-price competition.
Future clothes Inc., a publicly traded company, designs and manufactures wearable technology. Future Clothes should Focus on research and development as a form of non-price competition.
Explanation:
When a company increases its production of goods or services at the same part of the supply chain, this expansion is called as the horizontal integration. Horizontal integration is achieved through increasing production of goods or services through Mergers, acquisitions, internal expansions, etc.
So when Future Clothes have a long period of horizontal integration in the industry, they should now focus on Research and Development in its related products or services as a form of non price competition.
Learn more about Horizontal Integration at:
brainly.com/question/1928970
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