Answer:
e. $3,200
Explanation:
According to accrual concept the expense which is incurred but not been paid should be recorded in the same period when it is accrue.
At the end of the period only 4 days from Monday to Friday is pased for which the wages have not been paid. The expense is accrued and unpaid.
Pay per day = $800
Pay for 4 days = $800 x 4 = $3,200
Answer:
7.8%
Explanation:
The formula and the computation of the return on assets is shown below:
Return on assets = (Net income) ÷ (average of total assets)
where,
Net income is $32,500
And, the average of total assets equal to
= (Beginning assets + ending assets) ÷ 2
= ($405,000 +$425,000) ÷ 2
= $415,000
So, the return on assets is
= $32,500 ÷ $415,000
= 7.8%
Answer:
Budgeted purchases = $71000
Explanation:
Below is the given values:
Direct material for the production = $70000
Ending raw material inventory = $3000
Beginning raw material = $2000
Budgeted purchases = Direct material for the production + Ending raw material - Beginning raw material
Budgeted purchases = 70000 + 3000 - 2000
Budgeted purchases = $71000
Answer:
a. Open innovation.
Explanation:
Since Butterfly Technologies source the technology from an external party and it is not a radical innovation (meaning it does not affect the core benefit brought by Butterfly Technologies' product), it is an open innovation.
External knowledge and know-how are used to improve the battery life and speed of their devices.
Answer:
Total relevant cost of 21,962 * $0.39 = $8,565.18
making internally
Less: Total relevant 21,962 * 0.22 = <u>$4,831.64</u>
cost of purchasing
Savings in cost <u> $3,733.54</u>
Conclusion: Manufacturing the hard cardboard box internally will save cost of $3,733.54 as compared to cost of purchasing the same quantity of box needed from supplier.
Note: Fixed costs is not relevant cost as it is unavoidable.