Answer:
The company should make the bicycle seats.
Explanation:
Given:
Number of seats to be made = 10,000
Variable cost = 80,000
Fixed cost = 10,000
Outside source cost for seats = $ 8.50 per seat
Since, the fixed cost of the seats cannot be eliminated. Therefore, the deciding factor will only be the variable cost.
Thus,
contribution margin per unit seat if made by own
= ( Variable cost / Number of seats )
Or
= 80,000 / 10,000
or
= $ 8
now,
the making the seats by own is $ 0.5 cheaper.
Hence, the company should make the bicycle seats.
Answer:
Inferior good
Explanation:
Inferior goods are those type or the kind of goods whose demand falls or decline when the income of the person or customer or individual rises or increases.
In short, the demand of the inferior goods is related inversely to the customer or person income.
So, in this case, the person bought 10 frozen pizzas per month, but when the person start earning, then the person would not buy the frozen pizzas. The frozen pizza will be inferior good for the person as the income of the person will rise.
Interest corporate bonds is taxed as an income tax but can also be tax as capital gain. Usually the interest itself is considered as state income tax. For gain and losses, that's the time it will gain capital gain if the if is redeemed before its maturity stage.
That statement is false.
They are different. Purchase discounts are given by the sellers to the buyers in order to reduce the amount that the buyers have to pay if they complete the payment within a specific period of time. Trade discount on the other hand, is given by manufacturers to the sellers or re-sellers.
Answer:
$2,255
Explanation:
The computation of the cost of good sold using the LIFO method is shown below:
Data given in the question
On October 1 = 8 units at $200 each
On October 2 = 20 units at $205 each
And, 11 units are sold on October 4
So using the LIFO method, the cost of goods sold for 11 units is
= Number of units sold × price of each units
= 11 units × $205
= $2,255
