The amount of track improvement cost that should be allocated to the Western Division is $3,200,000.
<h3>What amount should be allocated to
Western Division?</h3>
The amount that should be allocated to Western Division is a function of the miles travelled on the Western division.
The amount to be allocated to Western Division : (miles travelled on Western division / total miles travelled) x cost of the revision
- miles travelled on Western division = 800,000 miles
- total miles travelled = 1,200,000 + 800,000 = 2,000,000 miles
The amount to be allocated to Western Division : (800,000 / 2,000,000) x 8,000,000 = $3,200,000
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If there were no rules or information security standards governing the data that makes up an e-commerce transaction, the Internet would not be as popular as it is now.
It is well recognized that using cyber security is important for e-commerce. Because cyber assaults may result in significant loss of income, data, and company viability, cyber security is crucial for e-commerce. Be aware that an increase in online crime may cause a crash. Therefore, I would say that, in the absence of regulations or information security standards pertaining to the data that makes up an e-commerce transaction, the Internet would not be as popular as it is now.
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Answer:
b. Increase by $17,000
Explanation:
For computing the change in the operating income, first we have to determine the cost by make and buy options
Make options:
= Variable cost + fixed cost
= $70 + $60
= $130
Buy options:
= Outside supplier cost + fixed cost × remaining percentage
= $77 + $60 × 60%
= $77 + $36
= $113
So, the difference of cost would be
= $130 - $113
= $17
And, the operating income would be
= Number of units make in each year × cost difference
= 1,000 units × $17
= $17,000
