Answer:
The relevant cost of the 150 kilograms of the raw material when deciding whether to proceed with the special project: $979.
Explanation:
We do not use the original cost $2,236 because it is sunk cost.
We do not use market value because Otool Inc. does not either incur this cost nor sacrifice any benefit from not buying at market price.
The relevant cost of these raw material should be the benefit sacrificing from not selling the raw material, instead using it in the project; calculated as:
Selling price x Amount sold - Cost of delivery = 7.1 x 150 - 86 = $979.
Thus, the answer is $979.
Answer:
d. 3.5 years
Explanation:
We know that payback period is the estimated length of time it takes cash inflow from a project to recover back the cash outflow.
It is to be noted that the payback period makes use of cash flow and not profit, hence denoted by;
Payback period = Initial cost / Annual net cash inflow
Given that;
Initial cost = $420,000
Annual net cash inflow = $120,000
Therefore,
Payback period = $420,000 / $120,000
Payback period = 3.5 years
Answer: Promotion
Explanation:
The promotion is one of the important business strategy that helps in spread the awareness among the customers or users about the various types of brands and products by an organization.
The main objective of a promotion is to communication with the consumers so that they can aware about the various types of new brands and the product in the market as it helps in increase the probability of the business.
According to the given question, the communication helps in maintaining the relationship with the customers and the audience in an organization that helps in accept the products positively. Therefore, promotion is the correct answer.
Answer:
The 1st one because I would want the product to be okay for me to use and not under pay for something that will harm me.
Explanation:
It is just plain facts!!!
