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german
3 years ago
10

Saran Company has contacted Crane with an offer to sell it 5,100 of the wickets for $16 each. If Crane makes the wickets, variab

le costs are $14 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Crane make or buy the wickets?
Business
1 answer:
Natasha2012 [34]3 years ago
4 0

Answer:<em><u>Crane should buy the wicket as it result in saving of $ 1100</u></em>

Explanation:

Given:

Quantity = 5,100

Price = $16

Variable cost = $14 per unit

Fixed costs = $8 per unit

Buying Cost = 5100 * 16 = $ 81,600

Making Cost = Variable Costs + Avoidable Fixed Costs

Making Cost  = 14 * 5100 + (8 - 5) * 5100 = $ 86,700

Crane should buy the wicket as it result in saving of $ 1100 ($86,700 - $81,600).

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A good or service is said to be scarce when:
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a. at a price of zero, there will not be enough to satisfy everyone's desire for it.

A good or service is said to be scarce when at a price of zero, there will not be enough to satisfy everyone's desire for it. Scarcity is one of the pillars of economy as basically it says that we do desire certain goods because they are scarce, otherwise we are not interested in those goos as much as when they are scarce.

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3 years ago
You would expect a bond of an Eastern European government to pay interest rate as compared to a bond of the U.S. government. You
Olenka [21]

Answer:

1) A bond of an Eastern European government

2) A bond that repays the principal in year 2040

3) A bond from a software company you run in your garage

4) A bond issued by the federal government

Explanation:

Term: Long-term bonds are riskier than short-term bonds because holders of long-term bonds have to wait longer for repayment of principal. To compensate for this risk, long-term bonds usually pay higher interest rates than short-term bonds.

Credit risk: When bond buyers perceive that the probability of default is high, they demand a higher interest rate as compensation for this risk.

Tax treatment: When state and local governments issue bonds, the bond owners are not required to pay federal income tax on the interest income. Because of this tax advantage, bonds issued by state and local governments typically pay a lower interest rate than bonds issued by corporations or the federal government.

6 0
3 years ago
Diferencia entre organizacion, empresa y emprendimiento
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El término "empresa" indica un tipo particular de negocio que se ocupa de un producto específico. Una organización es la forma más grande y generalmente se compone de varias empresas. Simplemente, una empresa es una organización, pero una organización no es solo una empresa.
6 0
3 years ago
While a loan must be repaid, factoring is the selling of _____ to a finance company who then assumes responsibility for collecti
Umnica [9.8K]

The correct answer is accounts receivable.

While a loan must be repaid, factoring is the selling of accounts receivable to a finance company who then assumes responsibility for collecting the accounts.

<h3>What is factoring? </h3>
  • Factoring is concerned to a kind of financial transaction. It is also a type of a debtor finance.
  • In factoring a business sells it accounts receivable to another party at a lower cost or at a discount.
  • It is usually used in international trade finance.
  • It is also known as invoice factoring, accounts receivable factoring, or also as receivable financing.
  • In factoring there are three different parties directly involved.
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To learn more about accounts visit: brainly.com/question/17373928?

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6 0
1 year ago
Fashion, Inc. had a Retained Earnings balance of $16,000 at December 31, 2021. The company had an average income of $6,500 over
avanturin [10]

Answer:

Total amount of dividends paid over the last three years is $20500

Explanation:

The net income of the company is either retained in the company or paid out as dividends. To calculate the value of the ending retained earnings, we use the following formula,

Ending balance = Beginning balance + Net Income - Dividends

We first need to calculate the total net income for the 3 year period. The total net income for the 3 year period is, 3 * 6500 = $19500

Plugging in the available values for the ending and beginning balance of retained earnings and net income, we can calculate the value of total dividends paid for the three year period.

15000 = 16000 + 19500 - Dividends

Dividends = 35500 - 15000

Dividends = $20500

4 0
3 years ago
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