Section numbers with their corresponding page numbers
Answer:
The president of Riggs has missed something.
She should make the Sail instead of buying because its cheaper to manufacture than purchasing it outside.
Explanation:
<u>Cost of Manufacturing the Sails:</u>
Direct materials $93
Direct Labor $83
Total $173
The president of Riggs has included the $90 overhead based on $78,000 of annual fixed overhead that is allocated using normal capacity in the cost of manufacturing the sail which is incorrect.
Riggs Company is operating at 80 % of full capacity, hence utelizing the 20% excess capacity would not expand its fixed costs.
Thus said the current fixed cost are irrelevent for this decison and would be incurred whether or not Riggs Company utilizes the excess capacity
<u>Conclusion:</u>
The cost of making the sail is $173 which is lower than the cost of buying them at $ 258.
I would advise The president of Riggs to make the sail by utilizing the excess capacity since its cheaper than purchasing it outside.
Answer:
Communicating value
Explanation:
Communicating value involves showing others what makes one's product or skills different and better than others that are available.
What value means to stakeholders in a situation needs to be defined.
Focus is then given to how the skill or product can meet these unique needs.
Also one needs to understand the most effective platform to use in communicating value.
In this instance Ethan wants to make his resume stand out from all the other resumes that the company receives in order to be selected for an interview
He is communicating the value he can add to the company.
Answer:
a) Contribution from the special order= $52,640.
b) Stuart should accept the order
Explanation:
The amount of contribution to profit from the special order is the difference between the revenue and the relevant cost of variable cost of the special order.
The relevant cost of the special order is equal the sum of all variable cost only.
Note that the allocated facility overhead is irrelevant to whether to accept or reject the order. This is so because the costs would still be incurred either way.
Relevant variable costs of special order = (880 + 510) × 47 = $65,330
Sales revenue = 2,510 × 47 = $117,970.00
Contribution from the special order =$117,970.00 - $65,330
= $52,640.00
B) Stuart should accept the special order because it would increase its profit by $52,640.
Answer:
The correct answer is B
Explanation:
Utilitarian approach or method is the approach which assesses or analyze the actions in terms of the outcomes or results, that is the net costs and the benefits to all the stakeholders on individual level.
This approach aspire or attempt to accomplish the greatest good for the numbers when creating the least amount for preventing the suffering of the greatest amount.
So, the shop uses or practice the approach of utilitarian as it will provide them the extra one million dollar to put it in the marketing.
