When you make a decision means that you take an action course and leave othe free. You take advantage of some oportunities but "lose" other oportunities. Those opportunities that you let go are the opportunity cost in which you incurr any time that you choose. Your economical analysis (and probably in all life dimensions) must include the opportunity costs to make a decision that leaves you better than you would be if you had taken a different decision, this is your expected benefit should overcome the opportunity cost.
Answer:
It is profitable to accept the special offer.
Explanation:
Giving the following information:
The shopping mall would like to purchase 200 extra-large white trees. Apex Company has the excess capacity to handle this special order. The shopping mall has offered to pay $120 for each tree.
Variable costs:
Direct materials $50.00
Direct labor (variable) $3.50
Variable manufacturing overhead $1.00
Additional variable cost= $6
This special order would require an investment of $10,000 for the molds required for the extra-large trees.
Because it is a special offer and there is unused capacity, we will not have into account the fixed costs (except the incremental fixed cost).
Unitary variable cost= 50 + 3.5 + 1 + 6= $60.5
Fixed costs= 10,000
Incremental income= (200*120) - (200*60.5) - 10,000= $1,900
It is profitable to accept the special offer.
Answer: 1) consistency of the investment decision with corporate objectives
2) commitment to quality
3) corporate culture
4) business responsibilities to society and other external stakeholders.
Explanation: Qualitative factors are outcomes of decisions that can not be measured or quantified.
A company's project having a poor payback period and net present value may still go ahead with the project when it considers the consistency of the project with its corporate objectives; corporate culture; commitment to quality; its responsibilites to society.
Answer:
D. $1,344 unfavorable
Explanation:
We know,
Direct materials quantity variance = (Standard Quantity - Actual Quantity) × Standard price
Given,
Standard Quantity = 4,440 pounds of material
Actual Quantity = 4,650 pounds of material
Standard price = $6.40
Putting the values into the above formula, we can get,
Direct materials quantity variance = (4,440 - 4,650) pounds × $6.40
or, Direct materials quantity variance = -210 pounds × $6.40
Therefore, Direct materials quantity variance = $1,344
As the actual quantity is higher than standard quantity, the situation is unfavorable. Therefore, option D is the answer.
The amount generated from the investment with simple interest is calculated through the equation,
F = P x (1 + in)
where F is the future amount, P is the present worth, i is the decimal equivalent of the given interest and n is the number of interest period.
From this item it can be identified that,
P = $10,500
i = 0.06
n = 4
Substituting the known values,
F = ($10,500) x (1 + (0.06)(4))
<em> F = $13020</em>
Therefore, after four years, the amount of money that Alex will have is $13,020.
