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3 years ago

The opportunity cost of holding money

1 answer:

6 0

The opportunity cost of holding money decreases when the interest rate decreases, so people desire to hold more of it. Opportunity cost is what you are giving up to gain something else. The opportunity to do something, which takes an opportunity to do something else away. When the interest decreases, there is less things you are giving up to hold onto that money.

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Can someone help pick 1, 2,or 3 ?

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Answer:

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2 years ago

Grande Communications offers a lower price to customers who subscribe to Grande television, telephone, and internet services all

garri49 [273]

The answer is Price Bundling.

Price bundling is a marketing strategy. In this type of strategy, the company combines two or more products to sell them at a lower price than if the same products were sold individually.

It is also called product bundling or product-bundle pricing. As two or more products are combined/ bundled together to sell them at a lower price.

Hence, when Grande Communications offers a lower price to customers who subscribe to Grande television, telephone, and internet services all at once. This is an example of Price Bundling.

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2 years ago

During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 80,000 mini refrigerators, of whi

tiny-mole [99]

Answer:

1. Absorption Costing Income Statement

For the month ended May 31, 2016

Sales $10,800,000

Cost of goods sold

Beginning inventory -

Cost of goods manufactured $9,600,000

Ending Inventory $960,000

Cost of goods sold $8,640,000

Gross margin $2,160,000

Selling and administrative expenses

$1,080,000 + $180,000 $1,260,000

Income from operation $900,000

2. Variable Costing Income Statement

For the month ended May 31, 2016

Sales $10,800,000

Variable cost of goods sold

Beginning Inventory -

Variable cost of goods manufactured $9,280,000

Ending Inventory $928,000

Variable cost of goods sold $8,352,000

Manufacturing margin $2,448,000

Variable selling and administrative $1,080,000

expenses

Contribution margin $1,368,000

Fixed Cost:

Fixed manufacturing cost $320,000

Fixed selling and administrative $180,000

expenses

Total fixed cost $500,000

Income from operation $868,000

3. The reason for difference of amount for income from operation is $32,000 ($900,000 - $868,000). It is due to fixed manufacturing cost which is included for ending inventory under absorption costing (320,000 / 80,000 * 8,000). Hence, income under absorption costing is higher by $32,000 as compared to income under variable costing.

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4 years ago

Trusting others on the job can be dangerous

borishaifa [10]

Sometimes ? But some jobs involve trusting your co workers

6 0

3 years ago

Read 2 more answers

The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The direct labor budget indicat

just olya [345]

Answer:

Predetermined manufacturing overhead rate= $22.2 per direct labor hour

Explanation:

Giving the following information:

Fixed manufacturing overhead= $127,840 per month

Estimated direct labor hours= 9,400

The variable overhead rate is $8.60 per direct labor hour

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (127,840 / 9,400) + 8.6

Predetermined manufacturing overhead rate= $22.2 per direct labor hour

7 0

3 years ago