Answer:
b. $165,000 decrease
Explanation:
The total cost per year if Concierge Industries purchase the component outside is $510,000 (= $12.75 x 40,000 components per year)
But Concierge Industries can rent its unused manufacturing facilities for $45,000 if it purchases the component from the outside supplier
So the income/ loss if Concierge purchases the component from the outside supplier
= saving of manufacturing cost $300,000 + rental of $45,000 - $510,000 cost paid to outside supplier
= ($165,000)
Answer:
Departmental overhead rates
Explanation:
The company should consider the use of departmental overhead rate, if the amount of effort and attention to products varies substantially throughout the company's various manufacturing operations. This is because its helps in providing flexibility to every department of company shall conclude which department incurred high overhead in a particular period and particular process.
Advantages of debt financing over equity financing include that interest payment on debt are tax deductible
What is debt financing?
Borrowing funds from banks, financial institutions, or other lenders (such as directors or other group companies).
When a company raises funds for working capital or capital expenditures by selling debt instruments to individuals and/or institutional investors, this is referred to as debt financing. Individuals or institutions that lend money become creditors in exchange for a promise that the principal and interest on the loan will be repaid.
What is equity financing?
Equity financing is the process of raising capital through the sale of shares. Companies raise money because they might have a short-term need to pay bills or have a long-term goal and require funds to invest in their growth. By selling shares, a company is effectively selling ownership in their company in return for cash.
Learn more about financing here:
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Answer: 30.1%
Explanation:
The unemployment rate includes those who do not have employment but are actively looking for employment not those who do not have a job and are not looking.
The rate is also based on the Labor force which is the portion of the population that is <u>able</u> and <u>willing</u> to work. Retirees are not included in this measure. Those who are not looking are not willing.
Labor Force = 50 full-time + 15 part-time + 28 unemployed
= 93 people
Unemployment rate:
= 28 / 93 * 100
= 30.1%
