Answer:
Instructions are listed below
Explanation:
Giving the following information:
For the purchase option:
Buying price= $22 per unit.
For the make option:
Weekly rental payment of $30,800
The firm also has to hire five operators to help make product A. Each operator works eight hours per day, five days per week at the rate of $14 per hour.
The material cost for the make option is $15 per unit of product A.
A) We need to find the number of units that makes the unitary fixed costs= $7
Weekly rental= 30800
Direct labor= ($14*8 hours*5workes)*5 days= 2800
Total fixed costs= $33,600
Unitary fixed costs= total fixed costs/ Q
7=33600/Q
Q= 4800 units
B) Now Q= 6600
Buy= 6600*22= $145,200
Make= 6600*15 + 33600= $132,600
Answer:
C (The current and quick ratios both increase.)
Explanation:
Answer: $52,840
Explanation:
The opportunity cost are the benefits he will give up to pursue his current venture of landscaping.
= Salary from working for uncle + Interest on the Savings to be used in business + Difference in market value if he waits till the end of the year
= 50,000 + (7% * 12,000) + (12,000 - 10,000)
= $52,840
Answer:
D. C
Explanation:
As Downtown Coffee Roasters is a premium cafe which is reputed for its superior customer service. The coffee shop also serves gourmet food to its customers, which allows it to charge a premium price. Whereas, Budget Beans is a chain of coffee shops that charges the lowest price in the industry due to its self-service policy. However, Perky's Coffee Inc. has found a balance between these two strategic groups by using automated ordering to free up its employees to work as master baristas and bakers, thus focusing on creating excellent products. It charges a price slightly above that of Budget Beans. In this scenario, Perky's Coffee is following a blue ocean strategy. In blue ocean strategy, organizations pursuit differentiation and low cost at the same time simultaneously which Perky's Coffee Inc. is doing here in this case. Perky's has created a totally new demand by following this strategy quite successfully and has made the competition totally and almost irrelevant.
Answer: Capital market instruments include both long-term debt and common stocks.
Explanation:
Asking the options given, the option that is correct is that Capital market instruments include both long-term debt and common stocks.
The capital market refers to s financial market whereby equity backed securities and long-term debt can be purchased and sold. The capital different is different from the money market which ideally deals with short-term debt.
In the capital market, the buyers and the sellers engage in financial securities such as stocks, bonds, stocks, etc.
