Answer:
The net income will increase by $6,712 if the subcomponent is purchased.
Explanation:
Giving the following information:
Swifty Corporation incurs the following costs to produce 9900 units of a subcomponent:
Direct materials $8316
Direct labor 11187
Variable overhead 12474
Fixed overhead 16200
Total cost= $48,177
An outside supplier has offered to sell Swifty the subcomponent for $2.85 a unit.
Swifty could avoid $3000 of fixed overhead by accepting the offer.
We need to calculate the total cost of buying the subcomponent:
Buy:
Total cost= 9,900*2.85 + (16,200 - 3,000)= $41,415
The net income will increase by $6,712 if the subcomponent is purchased.
The cash surrender value<span> is the sum of money an insurance company pays to the policyholder or annuity holder in the event his </span>policy<span> is voluntarily terminated before</span>its<span> maturity or the insured event occurs.</span>
Answer:
increased
Explanation:
Data provided in the question:
Price of a gallon of gasoline in 1972 = $0.35
CPI in 1972 = 0.418
Price of a gallon of gasoline in 2005 = $2.25
CPI in 2005 = 1.68
Now,
Real cost in 1972 = [ Nominal cost in 1972 ] ÷ [ CPI in 1972 ]
= $0.35 ÷ 0.418
= $0.837
Real cost in 2005 = [ Nominal cost in 2005 ] ÷ [ CPI in 2005 ]
= $2.25 ÷ 1.68
= $1.34
Hence,
The price of gallon of gasoline increased between 1972 and 2005
The answer is airline industry.
The first passengers airlines actually first created in 1919, but at that time, the amount of money involved still hasn't big enough to be considered as industry.
The market for airline started to show a promising future in 1930s, where they started to obtain more than 6,000 consumers per year. 4 Years after that, they started to obtain a staggering increase to 450,000 consumers per year.