Answer:
The present of worth of machine operating cost is $ 228,061.55
Explanation:
In calculating the present worth of the machine operating cost,I grew the cost of $34000 per year from year 3 onwards by 6% , thereafter I discounted the increased machine operating cost with the applicable discount factor in each year as shown in the attached spreadsheet.
The statement which states that a management contract is an arrangement in which one firm contracts with another to <em>produce products</em> to its specifications is false
According to the given question, we are asked to show whether a management contract is one where there is an arrangement between two firms to <em>produce its goods </em>to its specifications.
As a result of this, we can see that a management contract is one where one firm gives its management skills <em>in part or in full</em> to another firm.
With this in mind, we can see that contract manufacturing is one where there is an arrangement in which one firm contracts with another to <em>produce products</em> to its specifications but is in charge of the marketing.
Therefore, the correct answer is false.
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Answer:
A) $3,429
Explanation:
Bonus capital paid by the new shareholders will be distributed among the Old Partner on the basis of their old sharing ratio
Capital Balance of Peter = $38,000
Settlement amount = $20,000
As we does not have revised profit ratios, Peter and Chris will share profit on their old ratios.
Remaining balance of Gary's capital = $26,000 - $20,000 = $6,000
Peter Share = 4/7 x $6,000 = $3,429
Increase the quantity demanded by about 25 percent.
<h3>What is the short definition of price elasticity?</h3>
- Price elasticity in business and economics refers to how much people, consumers, or producers alter their demand or the quantity supplied in reaction to changes in price or income.
- It is mostly used to evaluate how consumer demand has changed as a result of a price change for a good or service.
<h3>What are some examples of price elasticity of demand?</h3>
- When a price increase results in a greater percentage reduction in demand, we say a good is price elastic.
- For instance, if price increases 20% and demand declines 50%, the PED equals -2.5. One illustration is Heinz soup. Heinz soup options are plenty today.
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Answer:
Option A is the correct one
Explanation:
Among the various options given in question statement, option A is correct
Cost behavior analysis is done make management comprehend the impact of various costs change versus changes in activities in various levels of the company. This may involve direct materials, direct labor, and overhead costs. Hence if there is no correlation between changes in the level of activity and changes in costs, then such analysis wont be an effective cost behavioral analysis
