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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.
I would suggest it would most likely to be either A or B or both, however if I had to pick one I would go for A.
A - The question suggests you may have been putting more effort and <span>enthusiasm</span> into sales of the products for your new business "<span>you were so excited about the large volume of orders you had" which may mean after your first year of business you may have started to slack of or get complacent with putting you business out there marketing wise, also when launching a product for the first time people are interested in the new and latest thing (such as a new business) after a while people start to forget unless you have marketing and advertising to remind them.
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B - If the product you offer is unique and you were the first business to sale this / these items then after a year it is possible other competitors have started to copy you however this would completely depend on the products you sale.
C - Given you already had large orders in the first year people are happy to pay for the products you offer so this would exclude C.
D - If you have already had many orders in the first year people obviously want the products you sale even if you only sale 1 or 2 things so unlikely to be D.
Answer:
the amount deferred by tower as intra-entity gross profit: 3,240
Explanation:
120,000 sales with a cost of 66,000
remains at year-end:
24,000 with a cost of: 66,000/120,000 x 24,000 = 13,200
gross profit: 24,000 - 13,200 = 10,800
For this rgoss profit we are going to deferre the 30%;
10,800 x 30% = 3,240
Retailing. The method by which consumers acquire products and services.
Distribution Channel. The chain of businesses through which a good or service passes until it reaches the end consumer.
Manufacturer. Produces the products.
Wholesaler. ...
Retailer. ...
Closeout stores. ...
Convenience Stores. ...
Department stores.
