Answer:
Sparrow Co's automobiles are premium brands that command premium prices
Explanation:
The fact that both automobile makers incurs the same cost of $9,000 is just one of many factors to consider because the processes involved in manufacturing are not necessarily the same.
Besides,the level of workforce efficiency and the state of technology deployed are not necessarily the same.
It could also be that Sparrow Co. was able to achieve same level of cost with Bison Autos because it adopted modern cost reductions techniques such as Just-In Time which eliminates the need to keep inventory, thereby eliminating excessive costs of holding inventory.
All in all,Sparrow Co,could project itself as a maker of high-end brands and increase prices as appropriate.
<span>Cynthia will have to pay the $175 that was not covered by her indemnity policy. An indemnity policy typically pays a fixed amount for qualified medical services, with the policy-holder responsible for the balance.</span>
Answer:
$22,750
Explanation:
Data provided
Fixed manufacturing overhead = $16,500
Units produced = 5,000
Variable manufacturing overhead = $1.25
The computation of the total amount of manufacturing overhead cost is shown below:-
Manufacturing overhead = Fixed manufacturing overhead + Variable manufacturing overhead
= $16,500 + (5,000 × $1.25)
= $16,500 + $6,250
= $22,750
Answer:
50 customers per day
Explanation:
For computing the capacity required customers per day, first, we have to compute the current demand per day which is shown below:
Current demand = Average number of pets per day × estimated percentage
= 74 pets × 60%
= 44.4 per day
Now the capacity required per day would be
= (Current demand per day) ÷ (1 - capacity cushion percentage)
= 44.2 ÷ (1 - 0.12)
= 50.22 per day
