Answer: b. people face trade-offs
Explanation:
From the question, we are informed that Bullie Jean has $120 to spend and wants to buy cither a new amplifier for her guitar or a new mp3 player to listen to music while working out.
We are further informed that the amplifier and the mp3 player cost $120, each and so she can only buy one. This shows that people face trade offs and have to make a choice regarding some decisions. Here, an opportunity cost will be the one that she didn't buy at the expense of the other.
The company should accept the special order because it will get an additional profit of $4,000 ($12,500 - $7,500 - $1,000) for the special order. This additional profit amount can be acquired by separating the effect from the special order on each cost and sales of the company's business. The sales should increase by $12,500 ($5 x 2500 unit) amount if the job is taken and the variable cost should increase by $7,500 ($3 x 2500 unit). Lastly, the fixed cost should increase by $1,000 (the new machine).
Answer: Resellers
Explanation:
Resellers buy products from other businesses but do not significantly alter the form of the products they buy before selling them.
A reseller is a type of channel partner that acts as an intermediary between companies that make, distribute or provide IT products or services and end customers, which may be businesses or consumers. A key reseller role has been order fulfillment: The customer goes to a reseller to simplify the ordering process and offload procurement and order processing tasks.
Working with a reseller can also streamline product sourcing. A business that needs to purchase multiple technology components can make those purchases through a single reseller versus approaching multiple manufacturers or service providers directly. Competitive pricing may also attract customers to resellers.
Answer:
a. $349,700
b. $209,900
Explanation:
The computation is shown below:
Before computing the cash payment made to supplier first we have to find out the purchase amount which is shown below:
(a) Change in Finished goods + purchase = Cost of goods sold
-$25,800 + purchases = $307,000
So, the purchase is $332,800
Now
Cash paid to supplier is
= $332,800 + $16,900
= $349,700
And,
(b) Cash paid for operating expenses is
= $229,000 - $8,000 - $11,100
= $209,900
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