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mariarad [96]
3 years ago
14

Eddy Company is starting business and is unsure of whether to sell its product assembled or unassembled. The unit cost of the un

assembled product is $60 and Eddy Company would sell it for $135. The cost to assemble the product is estimated at $27 per unit and Eddy Company believes the market would support a price of $174 on the assembled unit. What is the correct decision using the sell or process further decision rule?
a. Sell before assembly, the company will be better off by $27 per unit.
b. Sell before assembly, the company will be better off by $39 per unit.
c. Process further, the company will be better off by $39 per unit.
d. Process further, the company will be better off by $12 per unit.
Business
1 answer:
GREYUIT [131]3 years ago
3 0

Answer:

d. Process further, the company will be better off by $12 per unit.

Explanation:

In order to make the decision we first analyse the costs and profit per unit of each decision.

Profits from unassembled product is as,

Profit = 135 - 60 = $75 per unit

Profits from assembled product is as,

Profits = 174 - 60 - 27 = $87 per unit

The differential is a positive profit = 87 - 75 = $12/ unit after assembly.

So the company should process further as there is an additional $12 to be made per unit.

Hope that helps.

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Anoveoswer:

The government deficit is $150 billion

Explanation:

Current Account (CA)  = Savings(S) -Investment(I).

Current account (CA)  is also conventionally defined as (X-M) (value of exports – value of imports) + Net income from abroad. (R)

CA = (X-M) + (R)

In this case CA= $1050 billion - $1100 billion

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Therefore CA = (X-M) + (R)

           - $50 billion = x + $100 billion

       X-M= -$100 billion + -$50 billion=  -$150 billion

8 0
3 years ago
During the beginning of the 21st century, the growth in computer sales declined for the first time in almost two decades. As a r
MAXImum [283]

Answer:

Answer for the question:

During the beginning of the 21st century, the growth in computer sales declined for the first time in almost two decades. As a result, PC makers dramatically reduced their orders of computer chips from Intel and other vendors. In general, the environment in which computer manufacturers operate is very uncertain; how should we expect this feature of the market to affect the length of contracts between computer manufacturers and their hardware manufacturers?

is given in the attachment.

Explanation:

4 0
2 years ago
In 2010 the United States posted a current account deficit of -$471 billion. The bulk of the negative value came from: A. a good
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Answer:

A. a goods trade deficit

Explanation:

The current account represent the trade balance (export less import) plus

the net income (person receiving interest, rent or wages from aboard less person and companies paying foreingers) and

the direct payment. ( remittances from wroker to US)

As the US is one of the most open-economies in the world the mayority of this deficit comes from import of good and services from aboard.

Another factor, is that US company invest around the world thus, the net income should be positive.

And becuase the US economy is strong as opposite of Mexico or other Latin America countries, the average US employee abroard will not send their wages to support his family.

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3 years ago
Lewis Inc. owns 40% of Morgan and applies the equity method. During the current year, Lewis buys inventory costing $400,000 and
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Answer:

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At the end of the year, Morgan still holds $140,000 of this merchandise

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40% = 0.4

$140,000 x 40% = $56,000

Lewis buys inventory costing $400,000 and sells it to Morgan for $700,000.

$700,000 - $400,000 = $300,000

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Since in this question, Fabian is the owner of a shop and he possesses it and he owns it. And since it is a financial debt on Fabian to pay the creditors, it is a liability for him.

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