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4 years ago

Among the costs of integration for states is __________.

1 answer:

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The answer is cost reduction. It is an opening to a more competitive ground that would invite different countries to participate and invest. The trade would allow prices to be good for costumers affordability. Cost integration can improve business systems through efficiency and cooperation.

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Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that

kkurt [141]

Complete Question:

Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 40,000 parts is $130,000, which includes fixed costs of $70,000 and variable costs of $60,000. The company can buy the part from an outside supplier for $3 per unit, and avoid 30% of the fixed costs.

Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold for $13,000 profit. If Harvey Automobiles makes the part, what will its operating income be?

A. 156,000 greater than if the company bought the part

B. 26,000 less than if the company bought the part

C. 26,000 greater than if the company bought the part

D. 62,000 greater than if the company bought the part

Answer:

Option C. 26,000 greater than if the company bought the part

Explanation:

Option A: In House manufacturing of 40,000 parts:

Variable Cost is always Relevant and is ($60,000)

The Fixed cost is always irrelevant unless it is specific fixed cost related to the decision. Hence Fixed cost is irrelevant here.

Option B: If we purchase from outsiders

The purchase cost of the product is variable cost hence it is relevant as it is always relevant.

Purchase Cost = $3 * 40,000 parts ($120,000)

The decrease or increase in the cost or income, due to a decision is always relevant. The decrease in cost is Opportunity income or benefits and is given as under:

Decrease in Fixed cost by 30% = $70,000 * 30% $21,000

Now the additional profit that will arise as we can manufacture additional parts of another Product B. This is only possible if we free factory space by purchasing parts of Product A from outsiders. This additional manufacturing of Product B parts will generate profit of $13,000 and thus is a relevant income here. It is also referred to as Opportunity Income.

Opportunity Income $13,000

Total Relevant Cost ($86,000)

<h2>Decision</h2>

The cost of option A is lower from Option B by $26000 ($86000 - $60000). Hence the operating income would be higher by $26,000 if the company manufactures in-house rather purchasing 40,000 parts from outsiders.

Option C is correct option here.

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4 years ago

Dynamic Production Services started the year with total assets of $120,000 and total liabilities of $55,000. The revenues and

Serga [27]

Answer:

$20,000

Explanation:

The income statement shows the revenue and expenses of an entity for a period. The difference between the entity's revenue and expenses gives the net income.

The balance sheet on the other hand shows the company's assets and liabilities, the difference of these is the owners equity.

Hence Dynamic's net income for the year,

= $100,000 - $80,000

= $20,000

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3 years ago

Which of the following is punctuated correctly?

BigorU [14]

Answer:

The correctly punctuated is:

3) I need to know whether you are able to perform the following functions of the job: revising existing marketing materials, promoting the company at trade shows, and reaching potential customers through direct mail campaigns.

Explanation:

It has the colon at the right place, and the commas observe the standard Oxford Comma convention for making a list. Both colon and comma are punctuation marks that can be used in making a list. Usually, the colon is put after stating "the following," while commas separate one item from the other and are used when the items are three or more, with the last item started with a comma.

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3 years ago

Shawn works at the local electrical company in Nampa, ID, which provides electricity to the entire city of Boise. This area is p

Sergio039 [100]

Answer:

fault tolerance

Explanation:

Fault tolerance refers to the property which allows a device to keep working correctly in the case of any of its elements collapsing. When the operation output at all declines, the decline is equal to the extent of the malfunction relative to a foolishly built device in which only a minor malfunction will cause a complete breakdown.

A fault-tolerant architecture allows a process to maintain its planned function, possibly at a decreased pace, instead of crashing entirely when any aspect of the process fails. The concept is more widely used to define information systems configured to keep functioning somewhat fully only, maybe, a decrease in performance or an improvement in reaction time as a result of intermittent malfunction.

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3 years ago

If a monopolist is able to increase the amount of product she sells from 400 to 420 units by lowering the price of that product

elixir [45]

Answer:

-$55

Explanation:

The computation of the marginal revenue is shown below:

As we know that

Total revenue = Price × Quantity

For 400 units, the total revenue is

= 400 × $50

= $20,000

And for 420, the total revenue is

= 420 × $45

= $18,900

Now the marginal revenue is

= ($18,900 - $20,000) ÷ (420 units - 400 units)

= -$55

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3 years ago