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DaniilM [7]
3 years ago
12

Epsilon Co. can produce a unit of product for the following costs: Direct material $ 8 Direct labor 24 Overhead 40 Total costs p

er unit $ 72 An outside supplier offers to provide Epsilon with all the units it needs at $60 per unit. If Epsilon buys from the supplier, the company will still incur 40% of its overhead. Epsilon should choose to:
Business
1 answer:
omeli [17]3 years ago
5 0

Answer:

If the company produces the units, it will save $4.

Explanation:

First, we need to calculate the relevant cost of making the units in-house. <u>We will consider only the incremental overhead cost:</u>

Make in-house:

Direct material= 8

Direct labor= 24

Avoidable Overhead= 40*0.6= 24

Total cost= $56

Buying:

Total cost= $60

If the company produces the units, it will save $4.

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shusha [124]

Answer: The demand is shared with the new company that enters the market.

Explanation: The Cournot duopoly is an imperfect competition model, that is, the law of supply and demand is not freely used, in which two companies with equal costs compete with homogeneous goods in a static environment, that is, with the same characteristics.

For example: A leading brand of soda in the market, get a competitor that has the same characteristics. People will prefer one of the two brands and they will always lead the market, but they will have to divide the market.

8 0
2 years ago
During the year, Kim sold the following assets: business auto for a $1,000 loss, stock investment for a $1,000 loss, and pleasur
Anton [14]

Answer:

c. $2,000

Explanation:

total loss claim = business auto loss + stock investment loss

                         = $1,000 + $1,000

                         = $2,000

Therefore, The Kim may claim $2,000 of these losses.

3 0
2 years ago
In the New Economy, people are most rewarded through education and intellectual growth when they spend years studying a broad ar
aliya0001 [1]

Answer:

False

Explanation:

The formal education setting has not been changing at the same rate with the daily changes in <em>business</em>, <em>technology</em> and other <em>socio-economic </em>elements.Therefore people who spend years studying a broad array of subjects in formal educational settings are less likely to be rewarded through education and intellectual growth.

7 0
3 years ago
Jafina works for a Sunshine Manufacturing, where her team shares a machine and materials with another team that works a differen
Naily [24]

Answer: Pooled interdependence

Explanation:

Pooled interdependence is a loose organizational model in which each business unit carries out it's own separate functions, might not interact with the other units and does not depend on other units directly even though it contributes to the accomplishment of the organizational goals and success.

Pooled interdependence is often seen as the loosest form of interdependence in organizations. Although the departments may not interact directly and may not depend on each other directly in the pooled interdependence model, every department contributes it's own individual pieces to the achievement of the same overall puzzle.

This creates a blind, indirect dependence on each other and the performance of a department has an impact on others as a department's failures may lead to the failure of the entire organization.

5 0
2 years ago
Read 2 more answers
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nika2105 [10]

Answer:

E. instrumental support

Explanation:

Instrumental support is generally the assistance or support an individual receives from their colleagues that is tangible.

Sam, Danny's colleague, observing his stressful situation and then volunteered to assist Danny in meeting the deadline is an example of an instrumental support.

7 0
2 years ago
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