Answer:
1)
cost of making (14000*22) = 308000
cost of buying (14000*(18+6)) = 336000
Difference cost = 28000
2)
No, Since, there is not other use of fixed cost, therefore, fixed cost will be a part of cost of buying.
3-a)
cost of making (14000*22) = 308000
cost of buying (14000*18) = 252000
3-b)
Yes, Since, there is other use of fixed cost, therefore, fixed cost will not be a part of cost of buying.
Answer:
NPV= $31,808.91
Explanation:
Giving the following information:
Io= -$150,000.
The operating costs:
Year 1= $5,000
Year 2= $6,000
Year 3= $7,000
The benefits:
Year 1= $80,000
Year 2= $90,000
Year 3= $70,000
To calculate the Net Present Value (NPV) we need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Cf= cash flow
Io= -150,000
Cf1= 80,000 - 5,000= 75,000/1.04= $72,115.39
Cf2= 90,000 - 6,000= 84,000/1.04^2=$77,662.72
Cf3= 70,000 - 7,000= 63,000/1.04^3= $56,006.77
NPV= $31,808.91
Answer:
A System
Explanation:
Novak is referring to a system. A system is a complex union of several interrelated parts that have different specific functions, but share a common goal, and a more or less common mechanism.
Society is a system, a computer as well. Firms are systems, they have different parts: employees, stockholders and management that have specific functions but work together toward a common goal: generating revenue.
Answer:
Opportunity cost is a useful concept when considering alternative places for using your resources and assets. ... If he/she farms the land, the opportunity cost is the income foregone by not renting it to a neighbor.
Answer:
True
Explanation:
Generally, net income will be the same under absorption costing and variable costing. However, producing fewer units than units sold will decrease the net income under absorption costing. As whatever the variable cost is under the absorption method, fixed manufacturing overhead remains the same that decreases the gross profit and net income. Under the variable costing, the fixed overhead will be calculated as per the units produced. Therefore, the net income will decrease proportionately.
