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Sauron [17]
3 years ago
8

Two months ago, Air-tite Corporation purchased 4,500 pounds of Hydrol, paying $15,300. The demand for this product has been very

strong since the acquisition, with the market price jumping to $4.05 per pound. (Air-tite can buy or sell Hydrol at this price.) The company recently received a special-order inquiry, one that would require the use of 4,200 pounds of Hydrol. Which of the following is (are) relevant in deciding whether to accept the special order?

Business
1 answer:
Anna007 [38]3 years ago
3 0

Answer: The $4.05 market price

Explanation: Air-tite can buy or sell Hydrol at $4.05. If they decide to accept the order, there has to be a higher return on the use of Hydrol in the return than they would get from selling Hydrol as is.

There may also be an opportunity cost to using the product for this special order if there is an order that would yield higher returns for the use of Hydrol.

The quantity that would remain after making the special order does not have any impact on the decision making process, as they are considering just one order that requires Hydrol.

The purchase price is not relevant as they cannot purchase Hydrol at that price in the present. The total quantity is not relevant either as they have enough for the order.

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Brian invests $11,500, at 6% interest, compounded semiannually for 2 years. Manually calculate the compound amount (in $) for hi
Katena32 [7]

Answer:

The important thing to remember here is that the interest is compounded semi annually, which means twice a year. When the 1st interest is compounded, the second interest is calculated on that new amount.

(11,500 + (11,500×6%)) = $ 12,190

(12,190 + (12190×6%)) = $ 12921.40

Explanation:

4 0
3 years ago
If a buyer has a critical or more important use of the product then the inelasticity of the demand increases. what factor is aff
Ghella [55]

If a buyer has a critical or more important use of the product then the inelasticity of the demand increases, then it is the importance of the product affecting elasticity.

A product is considered inelastic if its demand remains static even if there is a significant price change. It is generally the basic necessity product that are considered as inelastic product. Inelastic demand of the product ensures the adequate supply of goods. In inelastic demand case the quantity demanded is same despite the change in price and the demand curve is graphed out as a vertical line. These goods have no substitutes ensuring the quantity demanded remains unaffected.

In case of fall in the price, the demand remains same, generating less revenue. On the other hand, if price hikes, the business earns significant profit.

To learn more about inelastic demand click here:

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3 0
1 year ago
Handerson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direc
zavuch27 [327]

Answer:

Variable manufacturing overhead rate variance= $677.1 unfavorable

Explanation:

Giving the following information:

Standard:

Variable overhead 0.3 hours $ 7.80 per hour

Actual output 5,000 units

Actual direct labor-hours 1,110 hours

Actual variable overhead cost $ 9,340

<u>To calculate the variable overhead rate variance, we need to use the following formula:</u>

Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity

Actual rate= 9,340/1,110= $8.41

Variable manufacturing overhead rate variance= (7.8 - 8.41)*1,110

Variable manufacturing overhead rate variance= $677.1 unfavorable

4 0
3 years ago
Curtis was recently laid off and was given severance pay on the condition that he agreed not to criticize the organization publi
Luda [366]

This is an example of a non-disparagement agreement.

<h3><u>What is a non-disparagement agreement?</u></h3>

A part of an agreement, such as an employment contract, separation agreement, or marital settlement agreement, stipulates that the involved parties are prohibited from making any negative statements, remarks, or representations about each other. Such clauses are in prevalent use to prevent (ex) employees from adversely affecting the business of employers with disparaging public statements either during or after the employment period has ended.

<h3><u>What Takes Place If a Non-Disparagement Clause Is Broken?</u></h3>

A non-disparagement agreement is still a contract with potential legal repercussions if you don't uphold your half of the bargain, just like any other legal instrument. A breach of a non-disparagement agreement typically has financial repercussions. You might be required to repay all or a portion of your severance pay if non-disparagement was a requirement for you to receive it, depending on the terms of the agreement.

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4 0
2 years ago
Antonio has $11.00 to spend on a lunch consisting of hamburgers ($1.50 each) and French fries ($1.00 per order). Antonio's satis
saveliy_v [14]

Answer: <em>$4. 71 hamburger and $6.29 French fries. </em>

Explanation:

Total spendable income of Antonio = $11.00  

1 hamburger = $1.50

1 order of French fries = $1.00

Utility maximization function: U(x1, x2) = x1x2 i.e. 1 hamburger and 2 orders of French fries

Using the Utility maximization function: U(x1, x2) = $1.50 + $2.00

                                                                                      = $3.50 per lunch  

Therefore the customer will purchase hamburger worth of $(1.50 x 11.00/3.50) = $4. 71

And French fries orders worth of $(2.00 x 11.00/3.50) = $6.29

<em>Antonio will maximize his satisfaction by purchasing $4. 71 hamburger and $6.29 French fries. </em>

3 0
3 years ago
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