Answer:
The company should buy from an outside source rahter than manufacturing because each bottle manufactured costs $5 more.
Explanation:
Differential Analysis
Make Buy
Manufacturing Cost per bottle $ 67
Purchasing Cost per bottle $35
Freight per bottle $ 5
<u>Fixed Costs $ 22 </u>
<u>Total $ 67 $62 </u>
<u />
The company should buy the bottles from the outside source because the manufacturing costs are higher than the purchasing costs and the fixed costs.
The fixed costs are the irrelevant costs that will continue whether bottles are manufactured or purchased.
A long-term competitive advantage that is not easily to duplicate or surpassable by the competitors.
it allows the firm to earn excess returns for its shareholders.
Answer:
Budgeted total revenue = $424,000
Explanation:
<em>The revenue budget shows the expected amount sales income projected for the next coming accounting period for a business. It contains data about the expected ales volume for different products, their prices and the estimated sales revenue.</em>
Product Price Quantity Revenue
Ounce 0.40 460,000 184,000
Bottles 1.20 200,000 <u>240,000
</u>
Total revenue <u>424,000
</u>
Budgeted total revenue = $424,000
Answer:D. Many cost reduction opportunities exist and cost of reduction is low
Explanation:
Since the project has not commence the firm has lots of options to choose from and since the practical works has not started it's cheaper to substitute one method for another.
Answer:
When labor productivity is high.
Explanation:
According to neoclassical economic theory, real wages are equal to the marginal product of labor (MLP). The marginal product of labor is the extra output produced by one extra unit of labor (one extra worker).
If the MPL is high, this means that workers are very productive, and therefore, are paid a high real wage accordingly.
This is why countries with high labor productivity like the U.S. or Switzerland also have very high real wages.
