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Delvig [45]
3 years ago
15

Division X makes a part with the following characteristics:

Business
1 answer:
rodikova [14]3 years ago
7 0

Answer:

If Division X refuses to accept the $19 price internally and Division Y continues to buy from the outside supplier, the company as a whole will be:_________.

c. worse off by $28,600 each period.

Explanation:

The $28,600 loss the company incurs is from the lost contribution that Division Y's purchase of Division X's parts could have brought to the company if it buys parts inhouse.  This is calculated as follows:

Division X's variable cost per unit = $17

Division X's selling price to outside customers = $23

Division Y's offered buying price = $19

The contribution = $2 ($19 - $17)

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Joss is a marketing consultant Iris and Daphne are potential customers interested in commissioning Joss to undertake a market su
Norma-Jean [14]

Answer:

(C) Joss should charge Iris $500 and Daphne $800, that way economic surplus is maximized.

Explanation:

Assuming information asymmetries in the market, and Iris and Daphne are incapable of compare their willingness to pay against the average price of the market for this type of service, C is true since Joss maximize the economic surplus by increasing his productivity using the time better than his opportunity cost.

8 0
3 years ago
The net income reported on the income statement for the current year was $240,000. Depreciation was $50,000. Accounts receivable
Ilya [14]

Answer:

a. $337,000

Explanation:

Calculation to determine How much cash was provided by operating activities

Using this formula

Cash provided by Operating activities=Net income+Depreciation+Account receivable+Inventories decreased -Prepaid expenses+Accounts payable increased

Let plug in the formula

Cash provided by Operating activities=$240,000 + $50,000 + $10,000 + $30,000 - $1,000 + $8,000

Cash provided by Operating activities=$337,000

Therefore the cash provided by operating activities was $337,000

3 0
3 years ago
A car dealer advertises a rock-bottom price for a sports utility vehicle that usually goes for $1,000 or more. When you get to t
maria [59]

Answer:

b. bait pricing

Explanation:

Bait pricing strategy is one that is aimed at attracting customers by presenting a price that is lower than the actual value of a product. Usually the product is limited in quantity and when buyers come in they are convinced to buy something else.

This is considered an illegal means of marketing.

I'm the given instance when the customer got to the dealership the salesperson can't find that particular car on the lot, saying maybe it was sold this morning before he got in. The salesperson offers a higher-priced car.

This is bait pricing strategy.

3 0
3 years ago
When actual revenue ______ what the revenue should have been, the variance is labeled favorable.
xeze [42]

When actual revenue <u>exceeds</u> what the revenue should have been, the variance is labelled favourable.

Hope that helps!

6 0
2 years ago
Read 2 more answers
Shawn puts money into an account. One year later he sees that he has 6 percent more dollars and that his money will buy 5 percen
Paladinen [302]

Answer:

d. The nominal interest rate was 6 percent and the inflation rate was 1 percent.

Explanation:

Nominal interest rate = real interest rate + inflation rate

Real interest rate is nominal interest rate less inflation rate. The real interest rate represents the real purchasing power of interest paid.

If the interest rate buys 5 percent more goods ,it means that the purchasing power and the real interest rate is 5 percent.

The nominal interest rate is 6 %

Inflation rate = nominal interest rate - real interest rate

= 6% - 5% = 1%

I hope my answer helps you.

7 0
3 years ago
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