Answer:
D. Decreases from 30 to 28.5 bags
Explanation:
The computation of the economic order quantity is shown below:
= 
where,
Carrying cost is $80 × 40% = $32
Annual demand = 60 bags × 12 months = 720 bag
And, the ordering cost is $20 per order
Now put these values to the above formula
So, the value would equal to
= 
= 30 bags
Now the demand is decreased by 10% So, the annual demand would be
= (60 - 6) × 12 months
= 54 bags × 12 months
= 648 bags
The other things will remain the same
Now put these values to the above formula
So, the value would equal to
= 
= 28.46 bags
Answer:
c. dairy farming
Explanation:
Free entry can be defined as the situation in which business firms such as sellers of goods or service providers can enter into the market freely and start selling to consumers.
This ultimately implies that, there are no legal barriers or just a minimum barrier, if any for new firms starting the same business as others.
Hence, dairy farming is the industry which is most likely to exhibit the characteristic of free entry.
A diary farming is one of such industries that allows new agents to come into the business without any barrier because it simply involves the production of essential commodities such as milk, beef etc which are usually required on a large scale in an economy.
Answer:
Answer is Option 2: Life insurance proceeds received after the death of a spouse.
Explanation:
Life insurance proceeds are generally not taxable. They are paid after insurer's death. It would only be taxable if the policy was given to the spouse for a price. Even if proceeds are paid under accidental policy or health insurance policy, they are not taxable. Proceeds are always paid as a lump sum amount and not in installments.
Other given options, 1, 3 and 4 like reimbursement for medical expenses, taxable portion of a disaster relief payment and dividends exceeding net premiums paid are taxable.
Answer: Increased profit as opposed to making them internally.
Explanation:
Make or buy decisions are management decisions as to whether production components should be produced internally or outsourced.
Buy decision
Unit price= $34
Total unites= 19900
Total cost= $34*19900=$676,600
Make decision
$
Direct materials 178,000
Direct Labor. 380,000
Variable overhead. 104,000
Relevant fixed overhead 260,000
Total $922,000
Unit price for make=922000/19900
Unit price=$46.33
Since buying outside is more cheaper than producing internally, it will be more profitable to outsource(buy).
