Consumer income has no correlation with the equilibrium price of a product. Thus the price will c. Not change
Explanation:
When the consumer income increases, they will be able to buy a product more if they require it and if they do not require it they are able to spend that money or save it up as they please to.
As equilibrium price of a product is completely dependent upon supply and demand correlation.
The income of the consumer has little to do with it unless a relation between increased income and increased demand is established, there is little evidence to show that there will be a fluctuation in the prices of the grass seed in this case.
Managers need to pay attention to dealing with uncertain and competitive conditions. This is part of the mission and vision statements and has to do also with types of planning. The strategic planning includes long term decisions about the overall direction of the company. Conditions can change rapidly and managers must be aware of that .
Answer:
For now, it is better to keep producing in house. If demand increases, Pottery Ranch must outsource some of the production.
Explanation:
Giving the following information:
The variable manufacturing overhead is charged to production at a rate of 63% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $3.51 and $4.73, respectively. Normal production is 28,300 curtain rods per year.
A supplier offers to make a pair of finials for $13.20 per unit.
Fixed costs are a sunk cost, therefore it is not taken into account.
Make in house:
Unitary cost= 3.51 + 4.73 + (4.73*0.63)= $11,22
Outsource:
Unitary cost= 13.20
For now, it is better to keep producing in house. If demand increases, Pottery Ranch must outsource some of the production.
Answer:
Franchisor
Explanation:
The franchisor is the owner of the brand, while the franchisee is the one that uses its brand through a franchise contract
Answer:
has been overapplied.
Explanation:
The net balance of debit and credit of manufacturing overhead account is under or over applied overhead. On debit sides the Actual costs incurred is recorded and overhead applied is recorded in credit side of manufacturing overhead account. Total actual costs are $82,000 ( $30,000 + $24,000 + $28,000 ) and overhead applied is $86,000. Net balance of account is overapplied overhead of $4,000 ( $86,000 - $82,000 ).
