Answer: An escalation of commitment
Explanation:
Carrying out projects can be capital, time and energy intensive. Most times they could result to a positive progress or result and other times they may not but the area of changing minds on a project that has had a great ton of investment is usually hard except there is nothing that would be gotten from it. When so much time and resources has been put into a project and there is no plan for a change such commitment is called an escalation of commitment
The number of parts used for the wheels is,
(300,000 wheels) x (2 parts/wheel) = 600,000
For the seats,
(600,000 seats) x (3 parts/seat) = 1,800,00
From the calculation above, the ratio of wheels to total number of parts is 0.25 which means that the overhead allocated for the wheels should be equal to $165,000. The rest of the money should be for Sam, totaling to $495,000.
Answer:
Salaries expense A/c Dr $34,000
To Cash A/c $34,000
(Being the salary is paid for cash is recorded)
Explanation:
The journal entry is shown below:
On January 3
Salaries expense A/c Dr $34,000
To Cash A/c $34,000
(Being the salary is paid for cash is recorded)
Since salary is paid so we debited the salary expense account and the cash is reduced so cash account should be credited.
The options which are given are not correct. So, ignored it
Complete Question:
Chester has been selling widgets for $10, total variable costs are $4.40 and fixed costs are $100,000.
Chester has negotiated a new labor contract for the next round that will affect the cost for their product Cid. Labor costs will go from $2.79 to $3.39 per unit. Assume all period and other variable costs remain the same.
If Chester were to absorb the new labor costs without passing them on in the form of higher prices, how many units of product Cid would need to be sold next round to break even on the product?
Answer:
Chester
Break-even point = Fixed costs/Contribution margin per unit
= $100,000 / $5
= 20,000 units
Explanation:
a) Data and Calculations:
Selling price = $10
Old variable cost = $4.40
Additional variable cost = $0.60
New variable costs = $5 ($4.40 + $0.60)
Contribution per unit = Selling price minus variable cost per unit
= $5 ($10 - $5)
Fixed costs = $100,000
b) Chester's Break-even point (in units) is the number of units of a product Camp that Chester requires to sell in order to recover her fixed costs. The information provided by break-even analysis guides Chester in making decisions for the production of Camps and its marketing. Without identifying the units of Camp to be produced and sold in order to remain in business, all things being equal, Chester might short-produce or short-sell Camps and run the business unprofitably.
Answer:
Advisor A
Explanation:
t bill rate = 0.05
market rate = 0.13
the beta of the market is always 1
the rate of return= 0.05 + (0.13 - 0.05) x 1
= 0.13
which is 13%
<u>this</u><u> </u><u>is</u><u> </u><u>fo</u><u>r</u><u> </u><u>adviso</u><u>r</u><u> </u><u>A</u><u>.</u><u> </u>
with a return of 20% and 1.5 beta
0.05 + ( 0.20 - 0.05) x 1.5
= 27.5% <u>for</u><u> </u><u>adviso</u><u>r</u><u> </u><u>b</u>
when the return is 15% and beta is 1.2
0.05 + (0.15 - 0.05) x 1.2
= 17%
<u>Therefore advisor a is better</u>