Answer:
The company should buy the units because it will save $10,000.-
Explanation:
Giving the following information:
Make in-house:
Unitary variable cost= 2 + 8 + 6= $16
Avoidable fixed cost= $8,000
Buy:
Unitary cost= $15
<u>First, we will determine the total cost of each option:</u>
Make in house= 2,000*16 + 8,000= $40,000
Buy= 15*2,000= $30,000
The company should buy the units because it will save $10,000.-
A loan in which a parent deposits money with a host-country bank, which then lends the money to a subsidiary located in the host country is known as a back-to-back loan.
<h3>What is a back-to-back loan?</h3>
A back-to-back loan is a deal in which two parent corporations from separate nations borrow equal sums of money in their home currencies and lend it to the local subsidiary of the other.
While businesses could trade money on the currency markets, back-to-back loans can be more practical and provide the necessary currency. However, back-to-back loans have mainly been replaced by currency swaps and other comparable instruments. Nevertheless, these tools support global trade.
Learn more about loans here:
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Answer:
Allocative Efficiency
Explanation:
Allocative efficiency takes place when the consumer's preference towards a particular good is the most which are measured by their willingness to pay to get it. This leads to achieving the optimum distribution.
In the given scenario, allocative efficiency is violated as Miami Heat is going to sign their desired product i.e. LeBron James who is a star player but they were not willing to pay the maximum to get him and rather got him anyway. Thus, the optimal distribution is not achieved.
Management by objective.
This is a technique that uses a defined process to establish goals and measure results in the workplace.
The right rider for the physician to add is guaranteed future insurability. If the doctor knows for sure that his income will be growing in the future, he can add guaranteed future insurability rider to his disability policy, and this will allow him to purchase additional insurance without trying any medical question as long as he meets the income eligibility.