Answer:
<u>Part(a) Differential analysis as at February 24</u>
Make (Alternative 1) :
Direct Materials $35.00
Direct labor $18.00
Variable Overheads $2.70
Fixed Overheads $0.00
Total Make Costs $55.70
Buy (Alternative 2) :
Total Purchase Cost $59.00
<u>(b) On the basis of the data presented, would it be advisable to make the carrying cases or continue buying them? </u>
It is clear that from comparison of the cost of Purchase and the Cost of Making the Carrying Cases, the Cost of Making the Carrying Cases is lower than the Cost of Purchasing the Cases by $3.30
It is thus advisable to make carrying cases instead of buying them
Explanation:
Total Make Costs;
The Factory fixed overheads are irrelevant to this decision hence they were ignored in the make cost calculations.
The confidence interval is an interval estimate for a parameter value which gives an estimated range of values which is likely to include an unknown population parameter
At least 90% of (a large series of) 90% confidence intervals will include the unknown true values of the parameters.
<span>We use this interval to determine the probability that the confidence interval produced will contain the true parameter value</span>
Answer:
There was a tremendous drought in California, where the majority of lettuce is grown for the United States. Lettuce is vitally needed to make delicious tacos for Taco Tuesday. As a result of the drought, the price of lettuce used to produce tacos doubles.People get tired of eating tacos on Tuesday and switch to eating lasagna. What happens to lettuce in the short term? reduction in demand and supply which affects the price, such inflation of price would reduce the demand
Explanation:
Answer:
1.- To estimate the variable and fixed cost elements of the annual cost operation using the high-low method.
2. To express the variable and fixed costs in the form.
3.- To find the total cost to be incurred if a trock were driven 80,000 km during the year.
Explanation:
1.- Computation of the variable and fixed cost elements of the annual cost of the trock operation using the high-low method: the average cost when the truck is driven for 105.000 km is 11.4 cents and it is $13.4 cents when 70,000 km are there. So, the fixed cost is $4,200.2 Cost formula for total cost using the high-low method: The variable and vixed cost in the form is 3: the total cost to be incurred if a truck were driven 80,000 km during the year: $10,120
<span>With the information given above, taking
into account the sales of the previous year ($20,000) and assuming that the
sales for this current year will go up by 20%, the total variable cost will
decrease and the total fixed cost will remain constant.</span>
