Answer:
Supplier's quotation (2,400 x $6.25)                     150,000
Less: Relevant cost of production:
Direct material (2,400 x $31)                 74,400
Direct labour (2,400 x $18)                    43,200
Variable overhead (2,400 x $9)             <u>21,600</u>       <u>139,200</u>
Savings                                                                       <u> 10,800</u>
The parts should be produced in-house since the relevant cost of production is lower than supplier's quotation.
  Explanation:
In this case, we need to compare supplier's quotation to the relevant cost of production. The price of $6.25 above was computed by dividing the total price charged by the supplier by the number of parts. Moreso, the relevant cost of production is obtained by the aggregate of direct material, direct labour and variable overhead.
 
        
             
        
        
        
Answer:
Income +/- inventory adjustment
2015:   138,000 - 23,000 = 115,000
2016:  254,000 + 61,000 = 315,000
2017:   168,000 + 17,000 = 185,000
Explanation:
<u>Inventory Identity:</u>
Beginning + Purchases = Ending + COGS
As the mistake is on the right side it compensates by the other component which is COGS
<u><em>When the inventory is overstated</em></u> this means COGS is understated. 
We didn't record the cost of good sold thefore our gross profit is higher making the net income higher.
<u><em>When the inventory is understated</em></u> this means COGS is overstated. 
We record more cost of goods sold thefore our gross profit is lower making the net income fewer as well.
 
        
             
        
        
        
Answer:
(B) $20 billion
Explanation:
Given a certain level of MPC, an increase in government spending (G) by a certain amount translates to an increase in aggregate demand (AD) through the relationship below.

where Δ means <em>change.</em>
<em />
Therefore, given ΔAD of $50 billion, and MPC of 0.6,

= 
= 
= ΔG = 50 * 0.4 = 20
Therefore, increase in government purchases = $20 billion.
 
        
             
        
        
        
Answer: c. A nonagency relationship with everyone in the office.
Explanation:
For an agency relationship to exist in the eyes of the law, there must be a contract with a written designated agency relationship between the client and Meramac Realty. 
With no such contract in existence, the law recognizes no agency relationship between Meramac and any of its affiliates with the client. There is therefore a non-agency relationship with everyone in Meramac.