Answer:
It is cheaper to produce in-house. Cost savings= $3500
Explanation:
We need to find whether it is better to produce in-house or to purchase to a supplier.
Q= 175000
Produce in house:
Direct Materials $15,000
Direct Labor $5,000
Variable overhead $6,000
Fixed overhead $9,000
Total cost= $35000
Outsource:
Purchase Cost= 175000q*$0.18= $31500
Fixed Cost= (9000-2000)= $7000
Total cost=$38500
It is cheaper to produce in-house. Cost savings= $3500
Answer:
Money is served three purposes- unit of account, store of value and medium of exchange
Explanation:
In this question, we are to identify the role money plays in each of the following parts of the story.
Money is used to measure the valueof good in money unit, so the values can be compared easily.
In the first case, Van is comparing between value of goods. the money serves as unit of account.
Money is used as medium of echange to avoid the difficulty arising out of goods to goods exchange.
In the second case, Van is exchanging $140 for the DVD, money is serving as medium of exchange.
Money also has store of value, it can be saved and exchanged for goods over time.
In third case, Van is saving money for future exchange, money is serving its store of value function.
Answer:
D. A conglomerate
Explanation:
A Conglomerate is a big corporation that is composed of a various combinations of business entities seemingly unrelated but under one corporate group. It is a big organization that has numerous products and services which vary extensively from one another. It is a big parent company comprising of many subsidiaries producing different products and offering different services. In this case, Red Empire is a conglomerate, the parent company having subsidiaries in petroleum, capital markets, chemicals, steel, beverages, hospitality, airlines, education, automobiles, and consumer electronics industries all with their various brand names.
Answer:
B. Personal communication network
Explanation:
Personal communication network -
It refers to the method of establishing new connection or relation with various people, in order to expand his or her network, is referred to as Personal communication network.
The mode of communication can be with some digital gadget, telephone, or word to word communication.
Hence, from the given scenario of the question,
Ron tries to get to know various people, who may help to succeed in future.
As, connection with various people enables the person to get more and more knowledge and experience, thereby showcasing personal communication network.
Answer:
Big Tommy Corporation
Profit and Loss for the year ended December 31
Sales 404,000
Cost of Goods Sold 279,000
Gross Profit 125,000
<em>Operating Expenses:</em>
Salaries and Wages Expense 58,000
Office Expenses 16,000
Travel Expenses 1,000 75,000
Operating Income: 50,000
Non-Operating Expenses
Income Tax Expense 15,000 15,000
Net Income 35,000
Explanation:
Multistep income statement makes a clear distinction on Operating Incomes and Expenses and Non-Operating Incomes and Expenses
Operating income is Profit generated from Primary activities of the company
Non-Operating Incomes and Expenses do not relate to the Primary activities of the firm.They occur as a result of secondary activities.
