Since their is no choices he shouldn’t never touch the money and keep adding cash it increase it over time.
Answer:
See Explanation.
Explanation:
The company is incurring a relevant loss on purchase of Q rather than manufacturing it as,
When there is spare capacity only the relevant costs are identified to see if the decision to buy or make is worth it.
Since the factory fixed overhead is to be paid regardless of manufacturing Q, it should not be included in the estimations and the total cost of manufacturing Q should be
Direct Material + Direct Labor + Variable overheads
So Direct costs = 11.5 + 4.5 + 1.12 = $17.12
So the loss the company is incurring by purchasing Q = $19.20 - 17.12
Loss = $2.08/Q
Differential effect on the income is $2.08/ purchase of Q.
This can be avoided and thus Snipe should consider manufacturing Q rather than purchasing it as relevant direct costs give it an opportunity to make savings as there are no planned increases in production anyway.
Hope that helps.
When the price for a good or service is high then supply increases.
Price is the sum that the producer receives for each unit of an item or service that is sold. A rise in price nearly always results in a rise in the amount of that good or service supplied, whereas a fall in price results in a fall in the amount supplied.
The widespread consensus is that demand slopes downward because customers buy less when prices are greater. The price at which supply and demand are equal is represented by the intersection of the two curves as the market-clearing price.
When a good's price is higher than equilibrium, this indicates that there is more supply of the good than demand for it. The product is available in excess on the market.
To learn more about customers refer to:
brainly.com/question/13472502
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Answer:
c. They are often based on achievement
Explanation:
Answer: B)cost leadership
Explanation:
Firms that pursue a Cost Leadership strategy aim to employ practices and standards that will enable them to produce so efficiently that they have the lowest cost in the industry for a particular level of product quality.
This will translate to them being able to offer their goods at a lower price than the competition thereby increasing their profitability and enabling them capture market share.
