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ololo11 [35]
2 years ago
11

A company produces 500 microwave ovens per month, each of which includes one electrical circuit. The company currently manufactu

res the circuits in-house but is considering outsourcing the circuits at a contract cost of $28 each. Currently, the cost of producing circuit in-house includes variable cost of $26 per circuit and fixed cost of $5,000 perr month. Assume the fixed cost are unavoidable but thhat company could employ the vacated premises to earn rental income of $2,200 per month. If the companny outsources, monthly operating income will be ________________(Show work)
A) increase by $1,200
B) decrease by $14,000
C) decrease by $1,000
D) increase by $27,000
Business
1 answer:
VladimirAG [237]2 years ago
4 0

Answer:

A) increase by $1,200 is the correct option

Explanation:

Incremental savings     [500 *26] =13000

Rental income=2,200

Total income=15200

Less:Incremental cost  =[500*28] =- 14000

Incremental income 1200

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Seth appears to be taken aback by the number of files on his desk and his coworker’s comments about his boss. This reaction depi
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Answer:

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3 years ago
A vendor makes a new smartphone and presells four thousand units for $300 each. The factory has the capacity to produce one thou
Oksanka [162]

Answer:

2. Limited supply would increase the price

Explanation:

In the given case the vendor sells in advance four thousand units for $300. While the installed capacity of the factory being to produce 1000 smartphones every month.

Expected sales being 500 units per month.

During the first few months, since the seller has already successfully sold 4000 smartphone units, high demand for the smartphones is evident.

Since the supply is limited to 1000 units only in a month and the quantity demanded being more as is evident by 4000 units being pre sold, during the initial phase, this would create a high demand.

And since the supply is limited, the seller will have to increase the price as the demand is lot more.  

7 0
2 years ago
You are consulting for a natural food products distributor who is interested in determining the benefits it could achieve from i
antiseptic1488 [7]

The first advised will be to carry our a survey that will show peoples opinion.

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5 0
1 year ago
Andrews Corp. ended the year carrying $33,836,000 worth of inventory. Had they sold their entire inventory at their current pric
mamaluj [8]

Answer:

Revenue could be of amount $33,836,000

Explanation:

As the selling price is not given in the question, only the cost of the inventory is given, So,

We assume that the Sales quantity is X and the Selling Price per unit be Y

Then,

Sales = X × Y                              ............... Equation (1)

Less : COSG = $33,836,000     ................ Equation (2)

Net Income = 1 - 2

If the selling price is equal to the cost of the inventory which is $33,836,000. So, the only revenue which is to be added is the amount of $33,836,000.

Note: It totally depend or grounded on the Sales value.

6 0
3 years ago
Economic models are typically based on the principle that people behave rationally. However, people do not always behave rationa
BartSMP [9]

Answer:

<em>because the existing models have been in place for so long, they are considered untouchable, the equivalent of an economic law.</em>

Explanation:

The rational economic model is even more widely used in economics because it is easier to measure. Although people have irrational behaviors, they are more subjective, which makes the rational model still the most used by the economy, because through it is possible to measure behavior patterns, statistical data and information relevant to the economy.

3 0
3 years ago
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