Answer:
Xia Co.
1-a. The relevant costs for Xia Co. to make or buy the part:
Direct materials $2.25
Direct labor 1.00
Incremental overhead 0.75
Total relevant cost $4.00
1-b. Xia should make the part. It will cost Xia $4.00 to make the component while it costs it $5.00 to buy. It should therefore, make the component.
Explanation:
a) Data and Calculations:
Price of buying component = $5
Cost of making component:
Direct materials $2.25
Direct labor 1.00
Incremental overhead 0.75
Total relevant cost $4.00
b) The relevant cost for making the component is $4.00. The overhead cost based on 200% direct labor is not a relevant cost. It is an allocated fixed cost and must be incurred whatever decision is taken. By making the component, Xia Co. will be netting in a unit contribution of $1 ($5.00 - $4.00) with the alternative of buying.
<span>An account that would be increased by a debit is A. cash.
Cash account is the only account among these up there which would be increased by a debit. Credit is the type of money which you take from your account; on the other hand, debit is the money that you pay into your account, so obviously you will have more money in your cash account if you pay money into it.
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Answer:
the bond worth today is $651.60
Explanation:
The computation of the amount of bond worth today i.e. present value is to be shown below:
Present value = Amount ÷ (1 + interest rate)^number of years
where,
Amount = $1,000
Interest rate = 5.5%
And, the number of years is 8
Now placing these values to the above formula
So, the worth of the bond today is
= $1,000 ÷ (1 + 0.55)^8
= $651.60
hence, the bond worth today is $651.60
Answer:
B. A decrease in the price of substitutes.
Explanation:
When there is a Decrease in the price of Substitute goods to jogging shoes then more people will demand more of those substitutes.
Because those other goods are Substitutes, an increase in their demand reduces the demand for Jogging shoes because goods that are substitutes are not usually bought at the same time.but rather to replace the other. When more of the jogging shoe substitute are bought, less Jogging shoes will be demanded.
