Answer:
financial advantage of purchasing from outside vendor = $36,000
Explanation:
outside vendor offers 18,000 units at $40 per unit = $720,000
current production costs (for 18,000 units):
- Direct materials $324,000
- Direct labor $162,000
- Variable manufacturing overhead $36,000
- Fixed manufacturing overhead, traceable $162,000 ($54,000 avoidable)
- Fixed manufacturing overhead, allocated $216,000 (not avoidable)
- Total cost $900,000
total avoidable costs = $576,000
additional revenue generated by freed facilities = $180,000
financial advantage of purchasing from outside vendor = ($576,000 + $180,000) - $720,000 = $36,000
Answer:
c. Industry-based, OT
Explanation:
SWOT analysis is used by businesses to identify areas of weakness and look for ways to optimise them to meet business goals.
SWOT means
S- Strength
W- Weakness
O- Opportunity
T- Threat
So the industry-based view is more interested in Opportunities and Threats using the SWOT analysis.
Answer:
Single-layer taxation
Explanation:
Limited liability companies and S corporations are able to pass through their income as the owner's income. "LLC and S corporations" are entities, unlike the C corporation.
Pass-through entities have a taxation advantage over non- pass-through entities. In tax computation, a pass-through entity passes its income or losses as those of its owners; hence the entity will not be subject to income tax. The business profits are treated as income to the owners, who will pay individual tax income. LLC and S corporation have only one layer of taxation.
A C corporation is subject to taxation as an independent entity. The directors have to file corporate tax returns on behalf of the business based on the company profits. The business profits are distributed to the shareholder as dividends. The shareholders have to pay tax on the dividend received as part of their income tax. The shareholders are double-taxed, as the business owners- corporate tax and as individuals - income tax. Double layer taxation.
Answer:
Emergency
Explanation:
Emergency products are those that are needed urgently or in the case of an emergency usually with no planning. They are characterised by instant purchase and are easy to find.
Normally consumers plan before buying but in this case the need comes suddenly so consumer does not plan, the products are basically the same. Timing is critical in this type of purchase.
The answer to the sentence above is false based on the transaction above. Account Receiveable is an asset account which has "debit" as its natural balance. Recording credit sales will increase the account receivable balance and sales balance, thus an increase in account receivable balance occurs on the debit side.
