Answer:
The correct answer is C.
Explanation:
Giving the following information:
The Nelson Company's radio division currently is purchasing transistors from the Charlotte Co. for $3.50 each. The total number of transistors needed is 8,000 per month. Nelson Company's electronics division can produce the transistors for a cost of $4.00 each and they have plenty of capacity to manufacture the units. The $4 is made up of $3.25 in variable costs, and $0.75 in allocated fixed costs.
Because there is unused capacity, we will not have into account the fixed costs.
Unitary cost= $3.25
It is more convenient to produce in house. The indifference price is $3.50.
Answer:
Explanation:
Cost of machine - $80000
Useful life - 5 years
Salvage value -$5000
Depreciable amount = 80000-5000= 75000
Annual depreciation = 75000/5 = 15000
Year DR Accum Dep
Cost 8000
1 Depreciation 15000 15000
2 Depreciation 15000 30000
Year 3 Depreciation 15000 45000
Year 4 Depreciation 15000 60000
Year 5 Depreciation 15000 75000
Financial statement template
Balanced sheet
Cash asset + Non cash asset = liabilities + Equity
Cash asset + 65000 = liabilities + equity
Income statement
Revenue - expenses = Net income
Revenue - 15000 - Net Income
Answer:
Demand for plastic sprinklers for year 1 Year 2 Year 3 and Year 4 is 98 (33 + 14 + 51) , 111 , 133, 136.
Explanation:
The Production line capacity requirement for the next four years will be equal to the demand for the next four years. The production line needs to meet the annual demand for the plastic sprinklers. The production line is extended and economies of scale is introduced with helps the company save additional cost of extension in the production line.
Answer:
$55,500
Explanation:
The computation of the net realizable value after the write off entry is show below:
The credit balance in allowance with terms to bad debts is
= $4,500 - $4,000
= $500
Now the net realizable value is
= ($60,000 - $4,000) - ($4,500 - $4,000)
= $56,000 - $500
= $55,500
Hence, the same is to be considered
Answer: (i) $20 per model
(ii) $27 per model
(iii) Ginny has a comparative advantage in building models.
Explanation:
A country or a firm has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodities is lower than the other country or firm.
Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.
If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.
Therefore,
Ginny's Opportunity cost of producing one model = 
= $20 per model
Eric’s opportunity cost of building models = $20 + 35% of $20
= $20 + $7
= $27 per model
Hence, Ginny has a comparative advantage in building models because Ginny's opportunity cost of building model is lower than Eric's opportunity cost.
