Answer:
We should not take the contract
Explanation:
Net present value = Initial investment + Present value of cash inflows
Net present value = -95000 + 100000/1.08
Net present value = -2407.41
Thus, the contract should not be taken because the NPV is negative
Answer:
Outsourcing
Explanation:
Outsourcing is a term often used in business relationships that describes a practice in which companies ensures that best candidates are employed for a particular work often contract job, without getting involved in the process of sourcing and appointing internally. It can be used for various operations such as audition works, procurement, planning strategy, etc.
Hence, in this case, the correct answer is OUTSOURCING
Answer:
See below
Explanation:
A. Predetermined overhead
First, we all calculate total overhead cost at the denominator level
Total overhead cost = total fixed overhead + total variable overhead
= $250,000 + (40,000 × $2)
= $250,000 + $80,000
= $330,000
Predetermined overhead rate = Total overhead cost at the denominator level / Budgeted standard direct labor hour
= $330,000 / 40,000
= $8.25
B. Overhead applied
= Standard direct labor hour allowed for actual output × Predetermined overhead rate
= 38,000 × $8.25
= $313,500
Answer:
The correct answer is 5.
Explanation:
Faruq's income is $100. The price of tacos is $10. The price of milkshakes is $2.
If Faruq spends all his income on tacos he will be able to purchase
= 
= 10 tacos
If Faruq spends all his income on milkshakes he will be able to purchase
= 
= 50 milkshakes
So out of his total income he can either have 50 milkshakes or 10 tacos.
The opportunity cost of a taco will be
= 
= 
= 5
