Answer:
<u>Part 1</u> There will be a disadvantage for 30,000 as there are allocated cost into product X
<u>Part 2 </u>TRUE
As performing the order will not renounce to selling in the local market. When the order comiptes with the normal capacity(there is no idlbe capacity to use) it will have as opportunity cost the contribution if sold in the local market.
Explanation:
Revenue 10,000 x 40 = 400,000
Variable Cost: 100,000 x 32 = 320,000
Avoidable: 120,000 - 70,000 = 50,000
Answer:
Intrinsic rewards
Explanation:
When an employee is motivated by intrinsic rewards they gain satisfaction by performing a task. They are internally motivated to do the job and they value challenging work more. Examples of intrinsic rewards are greater responsibility and involvement in decision making
On the other hand extrinsic rewards are external factors that motivates an employee like money.
In this instance loves her job because it is something sheâs good at, it changes often, and "the possibilities feel immense.
Since the cost of $20,000 has been incurred two years ago, the firm should check and see as to how many units of the product were produced in the two years. Did the firm produce enough items to break even the cost of acquisition. Additionally the business should also check the current market value of this two year old equipment. The business manager should weigh in the savings that is to be obtained from outsourcing along with the resale value of the old machine and then take a declension as to whether the company should go for outsourcing. Also, the business manager must examine whether the outsourcing can happen for the long run. This is because two years down the line, outsourcing may have increased the cost and again another process may look attractive. So a through cost benefit analysis should be made before taking a decision.
Answer:
D. Both B and C
Explanation:
Based on the information provided within the question it can be said that you must go to The Building Codes and Building Officials Conference of America. This is where every company must go in order receive the guidelines of the materials that are approved by the government for all development procedures including construction, electrical wiring etc.
Answer:
The annual inventory carrying cost of the safety stock = $594
Explanation:
Given that:
The average daily demand (d) = 50 units / day
The lead time (LT) = 20 days
The combined standard deviation of demand lead time = 20 units.
The item cost = $75
The inventory carrying cost = 24% of the item cost
i.e. (24/100) × 75 = $18 of the item cost
Let assume that the management of the company wants to offer a service level of 95%.
Then the z-value that relates to 95% confidence interval level = 1.65
So; the safety stock relating to the 95% service level =
= 1.65 × 20
= 33 units
Now:
The annual inventory carrying cost of the safety stock = Safety stock × Inventory carrying cost.
= 33 × $18
= $594