Answer:
There is a loss on buying from outside supplier ,Peach's offer should not be accepted.
Explanation:
Variable cost is a cost that varies with number of units produced or sold so it is always a relevant cost while making decision.
Fixed cost remains constant irrespective of number of units so it is a irrelevant cost unless avoidable.So in the given case ,fixed cost $70 is irrelevant since same will be incurred whether purchased or manufactured.
Incremental savings
Saving in variable cost 220
saving in fixed cost 25
Total saving 245
less: Incremental cost (270)
Incremental profit /(loss) on buying from outside supplier (25)
Total loss 25*5900= -147500
Therefore, There is a loss on buying from outside supplier ,Peach's offer should not be accepted.
Answer:
$84 unfavorable
Explanation:
The computation of the activity variance for supplies cost is shown below:
Supplies cost for the standard one is
= $1,840 + (624 frames × $12 per frame)
= $9,328
And, the supplies cost for the actual one is
= $1,840 + (631 frames × $12)
= $9,412
So the activity variance is
= $9,328 - $9,412
= $84 unfavorable
As the standard cost is less than the actual one
expensive...............................
Answer:
is the amount that sellers are willing and able to sell at a particular price.
Explanation:
Quantity supplied refers to the amount of goods sold or supplied at a particular price by the sellers in the market. According to the law of supply, there is a positive relationship between the price of the commodity and the quantity supplied of that commodity.
This indicates that an increase in the price of the commodity will lead to increase the quantity supply of the commodity and a decrease in the price of the commodity will lead to decrease the quantity supplied of the commodity.
The answer is...
Liabilities
