B. Professional Service
The service process matrix rates services from low to high on labor intensity and on customization. Professional services are high on both.
Answer:
Option d (Relatively elastic) would be the correct solution.
Explanation:
- The demand for some of its commodities becomes relatively elastic, i.e. the price drop contributed to a large decrease or change in the number requested, thus lowering the overall sales.
- It could be contrasted to other options for elasticity-comparatively inelastic, completely inelastic, perfectly elastic even elastic units.
All 3 other options are not connected to the hypothetical offered. So, the option here was the best one.
Answer:
Selling price= $30
Explanation:
Giving the following information:
Unitary cost:
Variable= $30
Fixed= $16
Number of units= 4,100
<u>Normally, when there is unused capacity and a new customer asks for a reduced price, the fixed cost should not be taken into account when calculating the selling price. </u>The company benefits from increasing its sales, acquiring a new customer, and perhaps getting some discounts from suppliers in the variable components.
<u>The lower price that the company accepts is the one that equals the unitary variable cost. In this case:</u>
Selling price= $30
Answer:
Cash flow from financing activities-$380 million
Cash flow from operating activities($18*2) ($36 million)
Explanation:
The amount received from the issue of bonds would appear in the cash flows under the financing activities as cash inflow since the bondholders mad cash available to Agee Technology Inc, in form of loan repayable in future.
The coupon interest for the year (both for June 30 and December 31) would appear as cash outflow under the operating activities section of the statement of cash flow.
Coupon payment for June=$400 million*9%*6/12=$18
Coupon payment for December=$400 million*9%*6/12=$18
The coupon payment for December is included since the payment is made on 31st December,there should not be any time lag between payment and recording the necessary entries.
Answer:
equivalent units of production = 6,000 units
Explanation:
given data
process at end of September = 6,000 units
direct materials = 100%
direct labor and manufacturing overhead = 70%
solution
we get here equivalent units of production for the conversion cost that is
equivalent units of production = process at end × direct materials complete .........................1
put here value and we get
equivalent units of production = 6,000 units × 100%
equivalent units of production = 6,000 units
