Answer:
Product Net monetary advantage
X (800)
Y 1,000
Explanation:
A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.
Also note that all costs incurred up to the split-off point are irrelevant to the decision to process further .
Product X
$
Additional sales revenue from further processing
( 47,000-25,400) 21600
Further processing cost <u> (22,400)</u>
Net monetary advantage <u> (800)</u>
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Product Y
$
Additional sales revenue from further processing
( 54,700-37,000) 17,700
Further processing cost <u> (16,700)</u>
Net monetary advantage <u> 1,000 </u>
Product Net monetary advantage
X (800)
Y 1,000
Answer:
An increase in the family's car payment means the family will be unable to afford a vacation
Explanation:
Trade offs can be seen in terms of opportunity cost.
Opportunity cost or implicit is the cost of the next best option forgone when one alternative is chosen over other alternatives.
By choosing to buy a new car, the family would be forgoing the opportunity to take a vacation
Answer:
A. upper-echelons theory
Explanation:
Upper echelons theory postulates that too executives of a company view situations in a highly personalised way that is as a result of their experiences, values, and personalities.
The CEO of Mabel emphasized making affordable, low-maintenance vehicles that could be bought by low-income households.
This decision was as a result of his childhood experience where his parents had difficulty providing money to support the family.
He empathized with low income households, and wanted to provide goods that will help them
Answer:
The variable cost is $2.67 per dog.
Explanation:
The variable cost per unit can be determine by using the highlow method to separate the variable component of the given mixed cost. the variable cost is the one that varies with the level of output. Under high low method, we calculate the variable cost per unit by using the following formula:
Variable cost per unit = (Cost at highest activity level - cost at lowest activity level) / (Highest activity level in units - lowest activity level in units)
Variable cost per unit = (3600 - 2800) / (500 - 200)
Variable cost per unit = $2.67 per dog
