Answer:
<u>Part(a) Differential analysis as at February 24</u>
Make (Alternative 1) :
Direct Materials $35.00
Direct labor $18.00
Variable Overheads $2.70
Fixed Overheads $0.00
Total Make Costs $55.70
Buy (Alternative 2) :
Total Purchase Cost $59.00
<u>(b) On the basis of the data presented, would it be advisable to make the carrying cases or continue buying them? </u>
It is clear that from comparison of the cost of Purchase and the Cost of Making the Carrying Cases, the Cost of Making the Carrying Cases is lower than the Cost of Purchasing the Cases by $3.30
It is thus advisable to make carrying cases instead of buying them
Explanation:
Total Make Costs;
The Factory fixed overheads are irrelevant to this decision hence they were ignored in the make cost calculations.
Answer:
The answers are:
A) total output should increase
B) total output should decrease
C) total output should be kept the same
D) total output should be decreased
Explanation:
A) consumers are willing to pay a higher price; the quantity supplied should increase
B) if Marginal cost > Marginal benefit; the quantity supplied should decrease
C) if total surplus is at maximum; the equilibrium point between quantity demanded and quantity supplied will remain the same
D) if the quantity supplied exceeds the quantity demanded; to reach an equilibrium point, the quantity supplied should decrease to match the quantity demanded
Answer:
The stock price today is $38.76 as shown below
Explanation:
The value of the stock today is the present value of all future dividend payments from the stock.
Present value of first dividend=$14/(1+18.7%)^1
=$11.79443976
Present of second dividend=$38/(1+18.7%)^2
=$26.97007528
The stock price today is the sum of the present values=11.79443976
+26.97007528
=$38.76
Ordinarily, the valuation would have included the price at which the stock could be sold but since the company is wounding up and the only cash flow is payment of liquidating dividends, the price at which stock can be sold is not applicable.
Answer:
The correct answer is: "You can't always get what you want".
Explanation:
British well-known rock band "The Rolling Stones" was formed in 1962. Along their hits, we can identify "Paint it black", "Give me shelter", "Wild Horses", "Waiting on a friend" or "You can't always get what you want" (released in 1996) which is a song encouraging people to fight for what they want to achieve even if not all the time what is desired can be obtained.
A comparative advantage exists when the possible value of specialization is lower than that of different nations. The life of comparative advantage is, in turn, suffering from things consisting of abundance, productivity, cost of exertions, land, and capital.
Comparative gain refers back to the capacity to produce goods and services at a decreased opportunity value, no longer necessarily at a greater volume or quality. Comparative advantage is a key insight that trade will still arise despite the fact that one u . s . has an absolute advantage in all products.
Comparative gain is a key principle in global trade and paperwork the basis of why free change is useful to nations. The idea of comparative advantage indicates that even supposing a country enjoys an absolute advantage in the manufacturing of goods, trade can nonetheless be beneficial to each trading partner.
Learn more about Comparative Advantage here:brainly.com/question/2827889
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