Answer: 26.37%
Explanation:
Given that,
Standard cost of CD players = $161 per unit
Labor = $34
Materials = $74
Overhead = $53
Sales price = $300 per unit
Current multi-factor productivity =
=
= 1.86
Revised multi-factor productivity after productivity increase by 14 % = 2.1204
Thus given sales price remaining constant at $ 300 and multi-factor productivity of 2.1204
Revised standard cost of CD players =
= $141.48
Let the corresponding material cost be $m,
Therefore,
Labor cost + m + overhead cost = $141.48
$34 + m + $53 = $141.48
m = $54.48
percentage reduction in material cost =
=
= 26.37%
MATERIAL COST MUST REDUCE BY 26.37%.
Answer:
D. Extended form
Explanation:
The extended form is a non forfeiture option which is included to extend the coverage for a limited period of time upon the failure of the policy holder to pay the premiums. Here, the policy holder stops to pay the premiums but keeps the full amount of the policy in force for whatever term the cash value permits.
It is the default non-forfeiture option that is, it is automatically implemented.
Answer:
shelly should price them the same as what Mandy would have to pay for them in the marketplace
Explanation:
Market control is defined as the management of supply and distribution of goods and services by an organisation. It aims at achieving political and economic goals by the use of various factors such as demand, supply, pricing, transportation and taxes.
In the firm if Shelly wants the transaction involving the pallet of electronic switches to be representative of market conditions, she will should price them the same as what Mandy would have to pay for them in the marketplace.
The transaction value will not be overstated or understated in the companie's books, but Shelly's unit should record the transaction at market price.