Answer:
Silven Industries
If Silven buys its tubes from the outside supplier, it will be able to avoid $1.10 of its own Chap-Off manufacturing costs per box
Explanation:
a) Data and Calculations:
Estimated Production and Sales Units of Chap-Off = 140,000 boxes
Manufacturing cost per box: Avoidable costs
Direct material $ 3.70 $0.74 ($3.70 * 20%)
Direct labor 2.00 0.20 ($2.00 * 10%)
Manufacturing overhead 1.60 0.16 ($1.60 * 10%)
Total cost $ 7.30 $1.10
Outside supplier's price for tubes = $1.20 per box
b) Unless there an alternative use for the machine used in making the tubes internally exists, it may not be cost-effective for Silven to buy from the outside supplier. Alternatively, it should renegotiate a price per box that is less than $1.10 in order to stop making the tubes internally.
Answer:
For simplicity, assume there is only 1 man and 1 woman and that if the price of a microwave is equal to an individual's willingness to pay, the individual will purchase the microwave.
- If the number of male and female buyers is the same, then the best pricing strategy is to offer 2 different microwaves (option 3). One simple and cheap microwave for women and one with auto-defrost for men.
Strategy Revenue Revenue Total Revenue
from men from women from strategy
1. Auto-Defrost $82 $82 $164
Microwave only
at $82
2. Auto-Defrost $148 $0 $148
Microwave only
at $148
3. Simple $131 $66 $197
Microwave at $66,
Auto-Defrost
Microwave at $131
Suppose that, instead of one man and one woman, the market for this microwave consisted entirely of men. For simplicity, you can assume this means that there are two men, and no women. Under these conditions, pricing strategy <u>2. Auto-Defrost Microwave only at $148</u> would maximize revenue for the manufacturer.
Answer:
Net profit will be reduced by $5,700
Explanation:
The computation of financial advantage (disadvantage) is shown below:-
Gain from selling at the split-off point = Sold split-off point × Total units
= $11 × 2,300
= $25,300
Gain from Processing further = Sold units × Total units - Processing cost
= $13 × 2,300 - $10,300
= $29,900 - $10,300
= $19,600
Decrease in overall profit = Gain from selling at the split-off point - Gain from Processing further
= $25,300 - $19,600
= $5,700
Therefore, if commodity QI is further processed and sold, then net profit will be reduced by $5,700
Answer:
Correct option is C ; the DTA - Deferred tax asset is $300,000
Explanation:
For losses of Year 2015 DTA should be created at 31/12/2015 as due to this loss future income will get reduced and consequently company's tax liability will get reduced.
DTA = 750,000 x 40% = 300,000
In year 2016 tax rate is 40% so DTA will be at this rate as after setting off the loss of year 2015 with income of 2016 the company will benefit by 750000 x 40%=300000 due to lesser income tax liability.
Hence the DTA - Deferred tax asset is $300,000
Answer:
450,000 registered voters in the district
Explanation:
Population of interest is defined as the population that is under study and abouth which information is collected. Population of interest can be people, objects, measurements, and so on.
It is from the population of interest that the researcher draws samples that are studied. Insights from studying the sample will be used to draw conclusions about the population.
In this instance 4,000 voters interviewed is the sample. They were drawn from the population of interest made up of 450,000 registered voters in the district.
