Answer:
There is a loss on buying from outside supplier ,Peach's offer should not be accepted.
Explanation:
Variable cost is a cost that varies with number of units produced or sold so it is always a relevant cost while making decision.
Fixed cost remains constant irrespective of number of units so it is a irrelevant cost unless avoidable.So in the given case ,fixed cost $70 is irrelevant since same will be incurred whether purchased or manufactured.
Incremental savings
Saving in variable cost 220
saving in fixed cost 25
Total saving 245
less: Incremental cost (270)
Incremental profit /(loss) on buying from outside supplier (25)
Total loss 25*5900= -147500
Therefore, There is a loss on buying from outside supplier ,Peach's offer should not be accepted.
Answer:
let him put it where he won't see them until It is enough for buying his wants
Answer:
brainstorming method i choose this because no one can judge on what i suggest because sometimes i feel so underestimated
Answer:
Fixed Cost Function = Average Cost - Average Variable cost
Explanation:
A fixed cost is the one which does not changes with the level of production. These cost are irrelevant to number of units production. It is not affected by the units produced and sold. The change in fixed cost does not affect the marginal cost. The marginal cost is the variable cost that is incurred by producing one more unit. These costs are affected by the level of production.
