Answer:
<u>Part(a) Differential analysis as at February 24</u>
Make (Alternative 1) :
Direct Materials $35.00
Direct labor $18.00
Variable Overheads $2.70
Fixed Overheads $0.00
Total Make Costs $55.70
Buy (Alternative 2) :
Total Purchase Cost $59.00
<u>(b) On the basis of the data presented, would it be advisable to make the carrying cases or continue buying them? </u>
It is clear that from comparison of the cost of Purchase and the Cost of Making the Carrying Cases, the Cost of Making the Carrying Cases is lower than the Cost of Purchasing the Cases by $3.30
It is thus advisable to make carrying cases instead of buying them
Explanation:
Total Make Costs;
The Factory fixed overheads are irrelevant to this decision hence they were ignored in the make cost calculations.
Answer:
Loss of $7,000
Explanation:
Cost Price of the Machine
In Germany=€300,000
Exchange Rate on March 1, 2017 was 1.16 US$/€
Cost Price in USA=300,000 X 1.16
=$348000
Selling Price of the Machine
= US$350,000
Amount Paid to the dealer on April 1, 2017 at an Exchange Rate of 1.19 US$/€.
=€300,000X 1.19
=$357,000
Since the Cost Price is greater than the Selling Price,
Loss= C.P - S.P.
Loss =357,000-350000 =$7000.
The dealer made a loss of $7,000.
The number of employed workers in this economy is A. 13.5 million
Explanation:
The number of unemployed people in the economy means the percentage of people who are actively seeking employment but cannot find a job for sustenance.
Thus, the ones who are seeking a job are the only ones that can be considered here.
So, the total population cannot be considered and the pool that justifies this demographic is the total labor force which is 180 million.
And the number of unemployed people would be calculated by multiplying the percentage of them with the total labor force which would be
7.5 * 180 = 13.5 million people.
Thus 13.5 people in the force are unemployed.
