Answer: $66.90 per unit
Explanation:
Cost that would be avoided is:
= Direct materials + Direct cost + Variable manufacturing overhead + part of fixed manufacturing overhead
= 20.80 + 26.50 + 6.90 + (36.10 - 31.40)
= $58.90
If the outside supplier commits to 59,000 units a year, the company should not pay more than:
= (Number of units supplied * Avoidable cost + contribution margin on other product (opportunity cost) ) / Number of units supplied
= (59,000 * 58.90 + 472,000) / 59,000
= $66.90 per unit
Answer:
Please see below
Explanation:
Given that:
Number of chairs sold = 35,000
Cost per chair $79
The cost of goods sold that must be eliminated from the consolidated
= Number of chairs sold × Cost per chair
= 35,000 × $90
= $2,765,000
Therefore, for computing the cost of goods sold to be eliminated, we simply multiply the number of chairs sold with cost per chair.
They are categorized by confidential documents. Confidential
documents is where documents are being classified or the data is access
classified in which the data is sensitive or private and can’t be accessed
easily because of the sensitive content that it contains.
Answer:
The use of data aggregation leads to overstatement of the concentration and Herfindahl indices
while the use of National/state data leads to understatement of the degree of concentration in local markets.
Explanation:
The ratio of concentration and Herfindahl indices computed are mainly made up of foreign players while the contributions of small local unorganized players are not considered, which leads to the increase in the value of indices and ratios been used, ( i.e. The use of data aggregation ) . hence the overstatement of the actual level.
The understatement of the degree of concentration in local markets happens because of the use of national and state data while computing the concentration in the local markets like gasoline and this is mainly caused by the presence of fewer industries in the market. The state and national data does not reflect the true concentration in the local market hence the degree of concentration is understated at the local level.
