Answer:
It is more convenient to continue the production in house.
Explanation:
Giving the following information:
The company is currently operating at capacity and has received an offer from one of its suppliers to make the 12,000 awnings it needs for $25 each. Old Camp’s costs to make the awning are $12 in direct materials and $7 in direct labor. Variable manufacturing overhead is 70 percent of direct labor. If Old Camp accepts the offer, $42,000 of fixed manufacturing overhead currently being charged to the awnings will have to be absorbed by other product lines.
Make in house:
Variable costs= 12 + 7 + (7*0.70)= $23.9
Total variable costs= 23.9*12000= 286,800
Buy= 25*12,000= $300,000
It is more convenient to continue the production in house.
Answer: the ability to produce a good at a lower opportunity cost than other producers
Explanation: In other to clearly understand or grasp the definition or meaning of comparative advantage, the term opportunity cost should be understood. Opportunity cost simply means the benefit which one forfeits or losses when one chooses a certain option over the other. Comparative advantage is possessed by a certain seller or economy who is capable of selling his goods at a lower opportunity cost than its competitors. Thus, the comparative advantages weighs the size or amount of benefit forfeited or lost by sellers as a result of selling at a lower price. Thus the lower the opportunity cost, the better the comparative advantage.
The function that is best suited in handling the task that
will help you in seeking the information needed such as the total sales
generated in January is the SUMIFS. This function will help in summing the
values in the cells base on the dates or numbers provided.
Answer:
The correct word for the blank space is: market cannibalization.
Explanation:
Market cannibalization refers to the loss of revenues as a result of the introduction of a new product by the same company. The initial purpose of the firm is to spread its market share but the product introduced is so similar or covers the same need than the previous that it ends up replacing it instead of acquiring more consumers.
Market cannibalization also takes place when franchises of the same firm open stores too close to each other than one of them ends up capturing all consumers which replace the first store operating in the area.
