Answer:
Instructions are below.
Explanation:
Giving the following information:
Units= 35,000
Production costs:
Direct materials $9.40
Direct labor $8.40
Variable manufacturing overhead $3.40
The price offered to SP Corporation for this motor is $23.65.
We will not take into account the fixed costs, they remain constant in both options.
Make in-house:
Total cost= 35,000*(9.4 + 8.4 + 3.4)= $742,000
Buy:
Total cost= 35,000*23.65= $827,750
<u>It is cheaper to continue making the parts. </u>
Answer:
if the equipment is purchased, The ROI will decrease by 4.04%
Explanation:
current controllable margin = 53000
current operating assets = $210000
current ROI = 53000/$210000
= 25.24%
then:
New ROI = 53000/250000
= 21.2%
Therefore, if the equipment is purchased, The ROI will decrease by 4.04%
Answer:
The answer is
Income inelastic
The chocolate is a normal good.
Explanation:
First lets find the percentage increase or decrease in income and demand.
For income:
($2,200 -$1,800)÷$1,800
=$400÷$1,800
=0.2222 or 22.22%
For the demand
(21cups-19cups)÷19cups
=0.1053 or 10.53.
A 22.22% increase in income leads to 10.53% in demand of hot chocolate. This means it is less proportional. The demand is less sensitive to his income.
The hot chocolate is a normal good. If not an increase in income would have resulted to a lower demand for hot chocolate.
Net income is also called net profit. Its formula is: Net income= Total Revenue-Total expensesTotal revenue: 1,000,000Total expenses and taxes: 500,000Net income= 1,000,000-500,000Net income= $500,000
Answer:
The correct answer is letter "A": salaries.
Explanation:
Estimating project costs of businesses allows measuring the profits and costs the organization might have during operations. That budget must include direct costs such as <em>employees' salaries</em>, materials such as supplies and equipment, and indirect costs like administrative expenditures.