Answer: -$2,565
Explanation:
Operating Income with the Leashes line is $11,000.
If the Leashes line is dropped, the operating income would be:
= Sales of Collars - Variable expenses - Fixed expenses of Collars - Residual fixed expenses pf Leashes
= 210,000 - 135,000 - 56,000 - (38,000 - 27,435)
= $8,435
Change in Total income = Income without Leashes - Income with LEASHES
= 8,435 - 11,000
= -$2,565
Answer:
Unpack the things in the order of importance.
Explanation:
Unpack the things in the order of importance.
Answer:
The decision should be to make the part
Explanation:
Variable cost of manufacturing = 15000x4 = 60000
Fixed cost of manufacturing = 15000 x 2 = 30000
Purchase cost = 15000x5 = 75000
Total annual cost of making = 60000 + 30000 = $90000
Total annual cost of buying is 30000 + 75000 = $105000
90000 - 105,000 = -15000
This shows that manson's cost savings would decrease by -15000
So instead of buying, it is better to make.
Answer: Elastic
Explanation: When a good has close substitutes a small change in the price of the good will lead to a large change in its demand as consumers will switch to the less costly substitute good. Therefore, good with many close substitutes is likely to have relatively elastic demand, since consumers can easily choose to purchase one of the close substitutes if the price of the good rises.
<span> law of demand.......................</span>