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Dimas [21]
4 years ago
10

Betsy owned a speedboat that was not operating correctly. She hired Gail, a mechanic, to determine what needed to be repaired or

replaced on the boat. Gail concluded that the boat needed over $5,000 of work to run safely. Upset by the news, Betsy decided to get a second opinion from Kathy, another mechanic. Kathy advised Betsy that the boat only needed a new fuel pump, which cost considerably less than $5,000. Betsy decides to sell her boat instead of repairing it. When a prospective buyer asks Betsy whether the boat has been inspected by a mechanic, she will:_________.
Business
1 answer:
Alchen [17]4 years ago
4 0

Answer:

Betsy should simply tell the truth: that the boat was actually inspected by two mechanics, but not only it was not repaired, but both mechanics had a very different diagnosis about what was wrong with the boat.

She should also warn the buyer that the boat likely needs at least a new fuel pump, and in case the diagnostic of the first mechanic (Gail) is true, the boat then would likely need an expensive repair.

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Suppose you have two types of customers. Type 1 customers typically purchases your firm's product in bundles of 100 units, while
aleksklad [387]

Answer:

The marginal cost of selling 100 units to a Type 1 buyer is $110

Explanation:

In order to calculate the marginal cost of selling 100 units to a Type 1 buyer we would have to use the following formula:

Marginal Cost of selling 100 units to type 1 buyer=MC1= Marginal Cost of producing 100 units+Packaging cost

Therefore, Marginal Cost of selling 100 units to type 1 buyer=MC1

=1*100+10=$110

The marginal cost of selling 100 units to a Type 1 buyer is $110

6 0
4 years ago
The receiving department has three activities: unloading, counting goods, and inspecting. Unloading uses a forklift that is leas
stepladder [879]

Answer:

Calculating the cost of each activity,

Unloading = $ 80,100

Counting = $ 37,500

Inspecting = $54,450

Explanation:

Given:

Unloading lease = $15,000 per year

Fuel for the forklift = $3,600 per year

Maintenance for the forklift = $1,500 per year

Inspection uses some special testing equipment that has depreciation of $1,200 per year

Operating cost = $750.

Receiving employees average salary = $50,000 per year

Salaries; 3 × 50,000 = 150,000

Unloading salary = 40%  × 150,000 = 60,000

Counting salary = 25%  × 150,000 = 37,500

Inspecting salary = 35% × 150,000 = 52,500

                              Unloading                 Counting                    Inspection

Equipment               15,000                                                             1,200

Fuel                           3,600

Operation cost          1,500                                                                750

Labor                       60,000                   37,500                          52,500

Total cost                 80,100                   37,500                          54,450

6 0
3 years ago
Fatzinger Corporation has two production departments, Milling and Assembly. The company uses a job-order costing system and comp
docker41 [41]

Answer: $11.60

Explanation:

Predetermined overhead rate = Fixed overhead rate + Variable manufacturing overhead per direct labor-hour

Assembly Department's predetermined overhead rate is based on direct labor-hours.

Fixed overhead rate = Total fixed manufacturing overhead cost for Assembly /  Direct labor hours for Assembly

= 57,400 / 7,000

= $8.20 per labor hour

Predetermined overhead rate for Assembly = 8.20 + 3.40

= $11.60

3 0
3 years ago
What are 2 tools you can use to identify possible issues in a QuickBooks Online Company?
bija089 [108]

Answer:

The Audit Log

The Projects Tab

Explanation:

7 0
3 years ago
Scenario You have worked at your current employer for 5 years. Recently your company merged with a much larger Boston accounting
expeople1 [14]

Answer:

In order to restructure the organization under the new Management.

Explanation:

Remember, we are told that a merger had occurred with a larger company with the sole aim of improving efficiencies, increasing revenues, cut costs and adopt best practices in the industry.

Thus, as at part of achieving the merger objectives of cutting cost, such change in the number of employees in each of those departments are necessary. For example, if the company spends $50,000 on employee remuneration prior to the merger, by reducing the amount of employees they are more likely to reduce cost.

3 0
3 years ago
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