Answer:
The company should make the bicycle seats.
Explanation:
Given:
Number of seats to be made = 10,000
Variable cost = 80,000
Fixed cost = 10,000
Outside source cost for seats = $ 8.50 per seat
Since, the fixed cost of the seats cannot be eliminated. Therefore, the deciding factor will only be the variable cost.
Thus,
contribution margin per unit seat if made by own
= ( Variable cost / Number of seats )
Or
= 80,000 / 10,000
or
= $ 8
now,
the making the seats by own is $ 0.5 cheaper.
Hence, the company should make the bicycle seats.
Answer:
precautionary and speculative
Explanation:
Aggregating the transactional, precautionary and speculative demand for money,
we get the total demand for money. This is sometimes known as the liquidity preference curve, and is inversely related to the rate of interest.
Total demand for money=Transactions demand+precautionary and speculative demand for the money
Therefore, the answer to the question is precautionary and speculative
So they will want to buy them if someone sees a product they like and maybe feels a connection to buy it then they will buy it
Answer:
d.) discretionary expenses
Explanation:
We can explain going further into what is each item.
<u>A and B are your income </u>(for this question don’t sweat about the difference between gross and realized). They will constitute all the money you have in that period (the period will depend on the regularity of your income, it could be weekly, monthly, etc.).
Your fixed expenses are the things you will expend money on which, no matter what happens, will not change (it could be your rent, tax, health insurance, etc.).
Discretionary expenses, however, are costs that are things that you WANT, not NEED. It could go anywhere from a new shoe to a new boat (if you´re feeling rich, that is lol). That kind of expense will impact your available money (hey, nothing is free) but is not part of your budget as it is not a planned cost.
However, is important to note that if you wanna be super Monica Geller with your money you should forecast your discretionary expenses. Using your history as a base for calculating will eliminate most of the margin error.
