Answer:
Buy and save $2000
Explanation:
Vaughn’s Manufacturing Company
Differential Analysis
Make Buy
Direct Materials $127000
Direct Labor 32000
Variable Overhead 44000
Fixed Overhead 30000 26000
<u>Purchasing Cost $205000 </u>
<u>Total 233,000 231,000</u>
From the above we see that the total costs to make are $ 233,000 and purchasing costs are $ 231,000. There's a difference of $ 2,000 so buying and saving $ 2000 is the correct option.
$ 26,000 ( 30000- 4000) are irrelevant costs that will continue whether the product is purchased or made.
Answer:
d.Raise the prices at both restaurants, but raise the price of Bob's Breakfast more.
Explanation:
Price elasticity is a measure of responsiveness of quantity demanded to changes in price.
When price is inelastic change in price results in small or no change in demand.
When price is elastic a small change causes a large change in demand.
If the owner increases price for Nancy's Famous Breakfast and places a even higher price for Bob's Breakfast, the customers that patronise Bob's Breakfast will reduce. Those that stay will pay higher price.
More people will buy from Nancy's Famous Breakfast also at an increased price.
Answer:
Correct option is (a)
Explanation:
Unearned revenue are revenue earned against services that have not been performed yet. In accrual system, revenue is recognized when service is performed against it.
Revenue earned without service being discharged is treated as liability till the period service is performed. It is recognized as income only after service is performed. For example unearned rent revenue is an unearned revenue which is reported as a liability till the rent period for which revenue was received is over.
Answer:
Pls write this question in English