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Ulleksa [173]
2 years ago
6

Ortiz Co. produces 5,000 units of part A12E. The following costs were incurred for that level of production: Direct materials $

55,000 Direct labor 160,000 Variable overhead 75,000 Fixed overhead 175,000 If Ortiz buys the part from an outside supplier, $40,000 of the fixed overhead is avoidable. Reference: Ref 7-3 If the outside supplier offers a unit price of $68, net income will increase (decrease) by:_______.
Business
1 answer:
Archy [21]2 years ago
8 0

Answer:

Net income decreases by $10,000

Explanation:

                                                                          5,000 units

                                                     Make            Buy    

Direct materials                         $55,000

Direct labor                                $160,000

Variable overhead                     $75,000

Fixed overhead                          $175,000     $135,000 ($175,000-$40,000)

Cost to purchase (68*5000)     <u>                </u>     $<u>340,000</u>

Total cost                                    <u>$465,000</u>   <u>$475,000</u>

Cost lost = $465,000 - $475,000

Cost lost = -$10,000

So, Net income decreases by $10,000

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cupoosta [38]

Answer:

12.71%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

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= 4% + 8.71%

= 12.71%

The (Market rate of return - Risk-free rate of return)  is also called market risk premium and the same is used in the computation part. We ignored the bets of Delta

4 0
3 years ago
Sees a commercial for a brand x clothing company that depicts the wearers of the clothes out having a good time with friends. al
irakobra [83]

Answer:

Critique of advertising.

Explanation:

Advertising is a marketing strategy used by organizations or individuals to convince or persuade a consumer to buy their products.

It is used to promote goods and services using a multimedia channel such as television, radio, billboards etc.

Critique of advertising postulates that adverts usually urge or prompt consumers to buy products even when they don't need it.

6 0
3 years ago
ou are tasked with estimating the costs of a project. Select a project you are familiar with and give a concise summary of that
klemol [59]

Answer:

Cost Estimation is the usage of venture quotes of a restricted degree. This is a significant component of undertaking cost the executives as a feature of the information that incorporates arranging, observing and overseeing venture money costs. A surmised cost of an undertaking, called a quote, is utilized to approve a venture's financial plan and deal with its expenses.  

Proficient appraisers utilize characterized procedures to produce quotes that are utilized to assess the money related practicality of a task, to decide subsidizing for venture costs, and to follow venture costs. Quotes are significant in concluding whether to attempt an undertaking, to decide the venture's potential degree, and to guarantee that the task remains monetarily practical and maintains a strategic distance from over-use.  

Quotes are typically reconsidered and refreshed as undertaking extension becomes clearer and when task dangers are acknowledged - as the Project Management Committee notes, cost estimation is a procedure. The equivalent. Quotes can likewise be utilized to structure the premise of an undertaking as a state of examination for surveying the real viability of a task.  

<u>Key parts of cost estimation  </u>

Cost Estimation is the total of the expenses related with effectively finishing a venture through and through. The expenses of these activities can be partitioned in a few different ways and levels of detail, however the least complex grouping isolates costs into two fundamental classes: direct expenses and backhanded expenses.  

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Then again, circuitous expenses can't be connected to explicit cost places, and rather are made by a few undertakings at the same time, some of the time in various sums. In venture the board, quality control, well-being expenses and utilities are commonly delegated circuitous expenses since they are dispersed over various undertakings and can't be paid legitimately to a task.

8 0
3 years ago
Adam plans to invest $1500 today in a mutual fund. if he earns 12 percent interest compounded monthly, to what amount will his i
konstantin123 [22]
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4 0
3 years ago
The pizza industry is perfectly competitive and has​ 1,000 firms.All firms are identical.In​ long-run equilibrium, each firm is​
const2013 [10]

Answer:

A) making zero economic profit

Explanation:

A perfectly competitive industry is where there are many firms producing homogenous goods and services. There are no barriers to entry or exit of firms. Prices are set by market forces. Buyers and sellers are price takers.

In the short run, if firms in a perfectly competitive market are earning economic profits, in the long run, new firms enter into the industry and economic profit falls to zero.

In the short run, if firms in a perfectly competitive market are earning economic loss, in the long run, firms leave the industry and economic profit goes up to zero.

I hope my answer helps you

3 0
3 years ago
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