Answer: Option A
Explanation: In simple words, Short run budgets refers to the budgets which are made for a period of less than 12 months and long run budgets are made for a time period greater than one year.
Short run budgets are prepared for some specific assets such as supplying a new customer for one year.
Thus, from the above we can conclude that the correct option is A.
Answer:
b. $85,000
Explanation:
First, we should prepare the analysis of cost savings if the company buys outside.
Analysis of cost and savings
Purchase (5,000 units × $68) = ($340,000)
Savings
Variable cost = $80,000
Fixed cost = $175,000
Net income effect
($85,000)
The effect is a decrease in net income by $85,000.
Answer:
d. $2,676
Explanation:
The computation of the horizontal value is shown below:
FCF1 = (100 × 1.06) = 106
FCF2 = (106 × 1.06) = 112.36
FCF3 = (112.36 × 1.06) = 119.1016
FCF4 = (119.1016 × 1.06) = 126.247696
FCF5 = (126.247696 × 1.06) = 133.8225578
Now
Horizon value is
= FCF5 ÷ (Cost of capital - Growth rate)
= 133.8225578 ÷ (0.08 - 0.03)
= $2,676
Hence, the correct option is d.
Answer:enter into the strategic marketing process
Explanation:
I'd say it would be best to pay in all cash.
