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liq [111]
2 years ago
15

Exercise 23-8 Sell or process further LO A1 Cobe Company has already manufactured 15,000 units of Product A at a cost of $30 per

unit. The 15,000 units can be sold at this stage for $450,000. Alternatively, the units can be further processed at a $210,000 total additional cost and be converted into 5,800 units of Product B and 11,900 units of Product C. Per unit selling price for Product B is $107 and for Product C is $55. 1. Prepare an analysis that shows whether the 15,000 units of Product A should be processed further or not.
Business
1 answer:
Kipish [7]2 years ago
5 0

Answer:

Yes

Explanation:

In this question, we have to compare the cost so that the net income or net loss would be calculated.

                                         Sales              Process Further Cost

Sales                                $450,000       $1,275,100

Less: Processing cost                            $210,000

Net income                    $450,000        $1,065,100

where,

Sales of further processing cost would be

= 5,800 units × $107 + 11,900 units × $55

= $620,600 + $654,500

= $1,275,100

Since, net income is increased by $615,100. So, It would be process further

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Answer:

The answer is c. remains constant in total with changes in the level of activity.

Explanation:

In a cost structure of a firm, for decision-making purpose, it is usually divided into fixed cost and variable cost.

Variable cost is the type of costs which will increase following an additional production of an extra unit of product/service, that is, level of activity has been risen up given the production is taken place. A good example of these cost are material cost, labeling cost.

Fixed cost, as it name may tell, is costs that are unchanged regardless of a firm's activities level. That is, regardless of how many product/service is produced, these costs remain the same. A good example of these cost are depreciation cost, rental cost.

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3 years ago
Three people invest in a business. The first two invest in the ratio 2:3, and the third person
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Answer:

$15 million

Explanation:

The three investors' total investments would add up to  100% or 1.

The first two invested in the ration of 2:3

It means ;

Investor 1:  2/5

Investor 2: 3/5

If investor 3 invested twice as investor 1 and 2, then we can deduce that he invested ( 2/5 + 3/5) x 2

the  new denominator is 10, meaning

Investor 1 had 2/10,

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If total investments were $30 million, then the highest investor invested

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5 0
3 years ago
1. Purposeful behavior suggests that: A. everyone will make identical choices. B. resource availability exceeds economic wants.
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The answer is C. Purose full behavior states that people make decisions with a desired outcome in mind, taking all the losses and benefits into consideration.
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3 years ago
Economics indicators measures rather than activitys
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Answer:ok24

Explanation:kkgotit

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2 years ago
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Answer:

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In this graph the combination of 2 pairs of shoes and 15 pants will be perceived as having the same utility as the combination of 5 pairs of shoes and 4 pants. Both are combinations in the same indifference curve, the green one, and the utility of any combination lying in that green curve will be rated the same: u = 1.

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3 years ago
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