Answer:
A. An increase of $4,500
Explanation:
For computing the total cost change, first we have to determine the total cost which is shown below
= Direct Materials cost + Direct Labor costs + variable overhead costs
= $21,000 + $5,500 + $19,000
= $45,500
And, the outside purchase is $50,000
So, the total cost change would be
= $50,000 - $45,500
= $4,500 increase
Answer:
Sunk cost fallacy.
Explanation:
Sunk costs - are costs that have been incurred as a result of past decisions. Now are unrecoverable.
A trap which enables a investor to invest more in the sunken costs to earn profit.
Are cost incurred in the past tha cannot be changed.
Sunk cost fallacy - considering sunk costs when making new decisions at the margin. Can lead to using out of date facilities and incurring large opportunity costs.
Is the continued investment in something no longer desired to reconcile the loss of the initial investment.
Answer:
Pepsi
Explanation:
Dr.Pepper has like a little taste just Abt it to it tbh
Answer:Annual Net Income =$16,100---- B
Explanation:
Depreciation expense using straight line = Cost - Salvage life / Useful life
($
161, 000 - $7000) / 4
=$154,000 / 4
=$38,500
Annual Net Income to calculate the accounting rate of return= Annual Cash flow - Depreciation
= $54,600 - $38,500
=$16,100
Answer:
$77,760
Explanation:
After adjustment items of expenses will be deducted from the Net income, and items of income will be added to the net income.
Item of expenses = unpaid salary + Prepaid insurance (Expired)
Item of income = Interest earned + revenue
Net income after deduction = 77,600 - 795 - 555 + 755 + 755
Net income after deduction = $77,760
