Total cost if they purchase the equipment = 10,000 + 100(20) = 10,000 + 2,000 = 12,000
Total cost if the lease the equiplment = 500(20) = 10,000
The total cost of leasing the equipment is less than the total cost of purchasing the equipment, therefore, the company should lease the equipment.
Answer:
The botanical name for squash bugs is Anasa tristis. This bug is very common in the USA and gets its common name from the fact that it is attracted to and lays its eggs on squash, as well as pumpkin plants. I've also seen the bugs on cucumber plants and other curcubits such as melons.
Explanation:
Answer:
In a production process new raw materials are considered_____ whereas the finished products are considered______
WIP (Work IN Process)
Units for Sale/ Raw Material for other Processes
Explanation:
WIP (Work IN Process)
The raw material in WIP is converted to useful material for other processes.
Work in process consists of materials labor factory overhead or collectively called as conversion costs. In Work in Process these are completed fully or to a certain limit and send to other processes for further work.
Units For sale
Finished goods are ready for sale and send to desired stores or ware houses for storage and further dispatching to retail stores.
Sometimes these units further need servicing or processes in other departments to make a complex unit . In these situations they are considered raw material for other processes.
Answer:
The old factory machine should be replaced will result in lower cost
Explanation:
In file.
Answer:
Consider the following calculations
Explanation:
(1) Elasticity of demand = % Decrease in quantity demanded / % Increase in price
0.5 = % Decrease in quantity demanded / 10%
% Decrease in quantity demanded = 10% x 0.5 = 5%
New price = $100 x 1.1 = $110
New quantity = 100 x 0.95 = 95
New revenue = $110 x 95 = $10,450
(2) If elasticity of demand is 2, which is higher than 1, it signifies that demand is elastic. With elastic demand, total revenue will increase if price is decreased, so I should lower price.