Answer:
Manson Industries
The total cost savings that Manson will realize by buying the assembly part instead of making it is:
($14,700), showing that more costs will be incurred.
Explanation:
a) Data and Calculations:
Make Buy
Variable cost per unit $5 $6
Fixed cost per unit 2 2
Total cost per unit $7 $8
Total units required 14,700 14,700
Total costs $102,900 $117,600
Cost saving = ($14,700)
b) Based on the above calculations, it benefits Manson more to produce the part internally than to buy from an outside supplier. There is a cost difference of $1 because the fixed costs will still be incurred whatever decision is taken.
Answer: work hard; $65; less; $85
Explanation:
The following can be deduced from the question:
The Expected profit from working hard will be:
= (90% × $200) + (10% × $50)
= (0.9 × $200) + (0.1 × $50)
= $180 + $5
= $185
Then, the profit will be the difference between revenue and coat which will be:
= $185 - $100
= $85
Then, the expected profit from shirking will be:
= (90% × $50) + (10% × $200)
= (0.90 × $50) + (0.10 × $200)
= $45 + $20
= $65
Then, the profit will be:
= $65 - $0
= $65
Eric will (work hard) because the net gain of ($65) from shirking is (less) than the net gain of ($85) from working hard.
Answer:
Adjusted balance method.
Explanation:
Adjusted balance method is defined a method of calculating financial interest based on the outstanding balance at the end of the last billing period after the payments after all necessary adjustment to the account has been made.
This method of interest calculating leads to a reduced finance charge with time as payments are being made to offset and reduce the balance on the card
Answer:
Bad debt expense $11,320 ($283,000 × 4%)
To Allowance for doubtful debts $11,320
(being the bad debt expense is recorded)
Explanation:
The journal entry is shown below:
Bad debt expense $11,320 ($283,000 × 4%)
To Allowance for doubtful debts $11,320
(being the bad debt expense is recorded)
For recording this given transaction, we debited the bad debt expense as it increases the expenses account and at the same time it decreases the account receivable so the allowance would be credited so that the proper posting could be done
Answer: C. Low-involvement consumer
Explanation:
A low-involvement consumer could be described as someone who does not observe much risk in a product after purchase and could continue using the product due to his or her reservation on the product instead of returning to the retailer where it was gotten. Ying discovers that she can manage the detergent as long as it's able to remove stain from her cloth even though it has a bad odour. She is seen as a low-involvement consumer.
