Answer:
Make Buy
Direct material 85100
Direct labour 253000
Variable manufacturing overhead 52900
Fixed manufacturing overhead 69000
Opportunity cost 73000
Purchase cost 437000
Total 533000 437000
Financial advantage is 96000
Explanation:
Answer:
Nominal;nominal;real;the quantity theory.
Explanation:
Most economists believe that real economic variables and nominal economic variables behave independently of each other in the long run.
For example, an increase in the money supply, a nominal variable, will cause the price level, a nominal variable, to increase but will have no long-run effect on the quantity of goods and services the economy can produce, a real variable. The distinction between real variables and nominal variables is known as the quantity theory.
Answer:
Option (c) Marginal cost of fifth unit = $20
Explanation:
According to the scenario, computation of the given data are as follows:
1)
Option (b) : Marginal cost is the change in the total cost of firm due to one unit change in output.
We can calculate the marginal cost by using following formula :
Marginal cost = Total cost ÷ Quantity
2)
Marginal cost of fifth unit = Total cost at unit 5 - total cost at unit 4
= $160 - $140
= $20
Answer:
The net income is $150,500 and the return on assets is 20.06 %
Explanation:
The formula for computing net income and return on assets is shown below and the computation is also made.
Net income = Sales revenue × Profit margin
= $2,150,000 × 7%
= $150,500
Return on assets = Net income ÷ total assets
= $150,500 ÷ $750,000
= 0.2006
= 20.06 %
Thus, the net income is $150,500 and the return on assets is 20.06 %
Answer:
decrease by $800
Explanation:
The computation of the gross profit is calculated below:
= Number of inventory units on hand at the end of the year × (Cost per unit - current replacement cost per unit)
= 200 units × ($14 - $10)
= 200 units × $4
= $800
This $800 represents the decrease in gross profit and the same is to be considered
hence, the last option is correct
