Answer:
Case 1 = $420 million
Case 2 = $280 million
Case 3 = $350 million
Explanation:
As per the data given in the question,
Annual value by one distributor = $420 million per year
Annual value by two distributor = $560 million per year
Case 1)
The marginal value of first distributor is more than second
So when negotiating the value, it is = $560 million - $420 million = $140 million
and this value would be distribute between both. so each will get = $140 million / 2 = $70 million
and you would expect to capture $420 million of this deal
Case 2)
As distributors are run by government, so negotiation will be done with both the distributor at same time and margin would be $560 million and you would be grabbed = $560 million ÷ 2 = $280 million
Case 3)
In this case marginal amount of contact = $560 million - $140 million = $420 million
and half of it = $420 million ÷ 2 = $ 210 million, which is the amount to be offered
and you would expect to grab the remaining amount = $560 million - $210 million
= $350 million
Answer:
The correct answer is letter "A": the difference in total costs that result from selecting one choice instead of another.
Explanation:
Differential cost is the result of subtracting the costs of two different options from where only one is to be selected. The concept is mostly used at the moment of producing when the firm must find out the difference in manufacturing one more unit of a good. Differential costs can be variable or fixed costs.
Answer:
First let us define the nature of each of the following as per Balance sheet of a company:
Payroll payable- Liability
FICA taxes withheld- Liability
Federal taxes- Liability
410(k)- Liability
Explanation:
Effect of Transaction on assets and liabilities:
- Payroll expense Debit will have no impact
- Payroll payable, Federal taxes, FICA and 401(k) will increase the current liability.
- And when they are subsequently paid, cash will be credited hence decreasing the current assets and all these current liabilities shall be debited, hence decreasing the current liability portion.
Answer:
a. he will not have as much money for college classes, because he will have to pay for the trailer and its maintenance.
Explanation:
The statement that would best complete the chart, is that he will not have as much money for college classes, because he will have to pay for the trailer and its maintenance.
<em>This is the best statement because one of the major principles of Cost Benefit Analysis is that there has to be a Defining of a particular study area which implies that – </em><em><u>The impact of a project should be defined for a particular study area</u></em>
<em><u>The option clearly states that the project of purchasing the truck will impact on the college studies of Duane</u></em>
Answer:
Increase, Decrease
Explanation:
A decrease in the supply results in many buyers competing for very few goods. If the demand is constant, the quantity supplied and price have an indirect relationship. A decrease in the volume of supplied results in an increase in price. Many buyers will be competing for a few products causing the equilibrium price to increase.
A decrease in supply will cause the quantity available for buyers to buy to decline. Consequently, the volume purchased will be fewer. Equilibrium quantity will, therefore, decrease.
