Answer:
The elimination of the North division would result in an increase to net operating income of $100,000 for the South division.
Explanation:
Please see computation of the company's overall net profit
= South sales - South variable costs - South traceable fixed costs - South allocated common corporate cost - North allocated common corporate cost
= $880,000 - $550,000 - $80,000 - $50,000 - $100,000
= $100,000 profit.
N.B
Since the North division has been eliminated, all the items for North division would all be ignored except its allocated common corporate cost.
Answer:
A. planning, scheduling, and controlling.
Explanation:
The phases of project management are -
1. Initiation
2. Planning
3. Execution - Scheduling
4. Control
5. Close
Option A is correct because the answer includes the 2nd, 3rd, and fourth phases of project management.
Option B is wrong because programming is not a phase of project management. Option C is a combination of management functions. Therefore, it is incorrect. Option D is not correct as the service project is not different from the manufacturing project. Option E is the project management technique.
Answer:
Economic integration agreement is when countries within a particular geographical area decide to remove or relax tariff or non-tariff barriers to trade between themselves and also to coordinate and harmonize their fiscal and economic policies. Free trade area is the simplest form of an economic integration; it is when governments of member countries agree to remove trade restriction between each other and when member countries are given the freedom to determine their own external trade policies towards non-members.
Supporters of free trade area argue that it is beneficial to the country based on the trade creation argument. Trade creation is where high-cost domestic production is replaced by more efficiently produced imports from within the group; that is, more expensive domestic products are replaced by lower priced imports from countries within the group. The trade creation argument is hinged on the fact that a free trade area ensures that trade is generated over and above what would otherwise have happened if there was no integration. Further, the removal of tariffs allows members to specialize in those products for which they have a comparative advantage leading to a variety of cheap imports for domestic consumers, thereby increasing living standards or welfare gains. Trade creation also creates an incentive for high cost domestic producers to cut cost so as to remain competitive thereby enhancing efficiency.
On the other hand, a free trade area is criticized on the basis of trade diversion. This is where trade with a low-cost country outside the group is influenced by higher–cost products supplied from within the group; this results in a less efficient allocation of resources as trade from outside the group is replaced by trade from within the group. Trade diversion could mean that local consumers would have to buy products at less competitive prices. Another argument would be that a free trade area would lead to a removal of tariff between member countries thereby resulting in a cessation of government revenue from tariffs. As opposed to a free trade area, free trade would increase world output and employment, raise quality and lower prices of goods as firms have access to factor inputs; it will also increase world living standards or enhances welfare gains. A free trade agreement only restricts these potential advantages to a particular geographical space.
Explanation:
Answer:
Savings in additional cost as result of making $154,350.00
Explanation:
The relevant costs for this decision would be the variable cost of production and the external cost of purchase.
Unit variable cost of internal production
= 10.80 + 9.80 + 4.10 = $24.7
Variable cost of making ( $24.7 × 49,000) = 1,210,300.00
Variable cost of Buying ($27.85 × 49,000) = <u>1,364,650.00</u>
Savings in additional cost as result of making <u> 154,350.00</u>
Note that the fixed cost is irrelevant for the purpose of the make or buy decision . This is so because they would be incurred either way. Hence, they are not to be considered for the analysis
Answer:
$140
450
Explanation:
unit contribution margin = price - Unit
Variable costs = $468 - $328 = $140
Breakeven point is the number of units produced and sold at which net income is equal to zero.
Q = F / P - V
$63,000 / 140 = 450
I hope my answer helps you
