A pegged exchange rate means the value of the currency is fixed relative to a reference currency

Richardson motors uses 10 units of part no. t305 each month in the production of large diesel engines. the cost to manufacture o

Vera_Pavlovna [14]

Answer:

Richardson's opportunity cost is $8,000

Explanation:

If Richardson motors manufacture t305 themselves the total manufacturing cost per unit is $42,400.

Overhead of $24,000 is 1/3 variable and 2/3 of fixed, that means $16,000 of that would continue.

Therefore the avoidable variable manufacturing cost per unit is $24,000+$2000+$400= $26,400.

But, if Richardson Motors decides to buy the t305 from Simpson Castings then the per unit variable cost will be $36,000 ($30,000 purchase price + $6,000 material handling cost applied {i.e 20% X $30,000 per unit}).

Therefore, if they buy from Simpson Castings the per unit cost of the t305 component will no longer be the same. There will be an increase

I.e $36,000-$26,400=$9,600

If they buy 10 units per month, the total cost per month would increase by $9,600 X 10 =$96000.

If Richardson Motors happens to use the idle capacity to manufacture another product that would contribute $104,000 per month, then the opportunity cost would be:

$104,000 - $96,000 = $8,000

7 0

3 years ago

not-for-profit organization held the following investments: Investment Cost Fair value (beginning of year) Fair value (end of ye

arsen [322]

Answer:

$14,900

Explanation:

not-for-profit organization will report the investments at the fair value of the investments end of year, in the year-end statement of financial position.

Here,

Investment Fair value (end of year)

Stock A (100 shares) $51

Stock B (200 shares) $49

Stock A = (100 * 51) = $5,100

Stock B = (200 * 49) = $9,800

Total Investment fair value at end of year = $14,900

$14,900 will be the amount reported in stock investments in the year-end statement of financial position.

3 0

3 years ago

In economics, the cost of something is a. always measured in units of time given up to get it. b. the dollar amount of obtaining

Paha777 [63]

Answer:

The correct answer is C

Explanation:

Economies is the study of how the society uses the resources which are limited and it deals with the consumption, production as well as distribution of the goods and services.

And under the economics the cost of something like or product is defined as what the person give up in order to get something.

For example, a person wants to purchase to product, he needs to give up the money against it in order to have the product or item with him.

4 0

3 years ago

Suppose that while melissa was on the coast, she also spent two days sightseeing the national parks in the area. to do the sight

Virty [35]

Most of the times when a personnel is sent for an official business trip, transportation and lodging, and sometimes even meals are shouldered by the company.

In the statement given above, it is noted that the meals that Melissa took are considered personal in nature. Hence, she can deduct this from the business expenses.

8 0

3 years ago

Credit terms are terms for a.when payments for merchandise are to be made with cash. b.when the payments for merchandise are to

tatiyna

Answer: b.when the payments for merchandise are to be made.

Explanation:

Credit terms refers to the payment terms which are mentioned on the invoice when a good is bought.

Credit terms are terms for when payments for merchandise are to be made. Credit Terms are made during sales on account. The credit term shows the discount rate tahts offered to the costumer and the time limit that the creditor is expected to pay.

8 0

3 years ago