Answer:
it will be a net loss of 560,000
It is better to produce at a loss of 60,000 than a loss of 620,000
That's because, the Division cover a good portion of their allocate fixed cost.
Explanation:
The fixed expense are allocate cost. Are unavoidable cost It will remain even if the division is dropped.
The sales and variable cost will be zero.
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After posting the values, we calculate the differential income.
In this case it will be a loss for 560,000
The contract must be very detailed and should include all the contingencies spelled out in it.
<u>Explanation:</u>
Contract is a document that is made between two or more than two parties who have come in to an agreement with each other over a particular thing. The contract might be a business contract that the parties make which should have the proportion of profit and liabilities of the business that is to be shared among the partners.
Since the profit and losses are to be shared between the business partners on the basis of this contract, the contract should have very detailed information in it and all the contingencies should be spelled out in it.
Answer:
a)
1. Explicit cost
2. Implicit Cost
3. Implicit Cost
4. Explicit cost
b)
Accounting Profit is $62000.
Economic Profit is -$3000. (a loss of $3000)
Explanation:
a)
Explicit costs are those costs incurred by a business that require an outlay of money as a result of operating a business.
Implicit costs, on the other hand, are the costs that do not require an outlay of money as a result of operating a business. They are instead the opportunity costs of operating a business or the benefits that are foregone.
1. The wages and utility bills are a result of operating a business and requires and outlay of money as their payment. They are <u>explicit costs.</u>
2. The rental income could have been earned if Larry rented the showroom he is using to operate his business from. The rent foregone is an opportunity cost and is an <u>implicit cost.</u>
3. The salary Larry could have earned is also something that Brian has to forego to operate his business and is an <u>implicit cost.</u>
<u />
4. The cost of purchases paid to manufacturer requires outlay of money and is an <u>explicit cost.</u>
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b)
Accounting profit = Total Revenue - Total explicit cost
Economic profit = Total revenue - (Total Explicit Cost + Total Implicit Cost)
Accounting Profit = 793000 - 430000 - 301000 = $62000 profit
Economic profit = 793000 - (430000 + 301000 + 15000 + 50000) = -$3000 loss
A. educational certificate because if you are still in high school that's all you have and if you are an adult they need to know if you are graduated have your GED or graduated from college
One of the biggest ethical risks in supply chain management is that the <u>most visible</u> supply chain member tends to be the one that suffers the blame and/or lost goodwill when something goes wrong.most visible.
<h3>What is ethical risk?</h3>
- In reaction to their unethical behaviors, actors end up externalizing their locus of control, as if they had no other choice.
- In this manner, actors reduce their own power to identify a profitable alternative course of action. They reduce their freedom to choose.
- On the other hand, inclusive awareness of ethical and unethical aspects triggers a natural search for more ethical actions (Cf. Psychological attitudes towards ethical dissonance).
- A rational analysis of the interest of such a more ethical alternative allows avoiding exaggeration of its costs (without proper analysis, a typical justification of an unethical action is that an alternative course of action would be too costly).
- Further, awareness of potential ethical costs increases the relative attractiveness of an alternative more ethical action. The re-framing of the situation allows the identification of new opportunities otherwise hidden to the actors.
To learn more about ethical risk from the given link
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