Answer:
Annual financial disadvantage = $ (669,600)
Explanation:
Relevant cost are future incremental cash costs that arise as a direct consequence of a decision.
The relevant costs of this decision to disconnected includes the following:
- The variable cost of making the product = $19 per unit
- Sales revenue at a price of $25
- Savings in avoidable fixed costs (102,000-72,000) = 30,000
Annual financial advantage
$
Lost contribution $(25-19)× 4,300 units = (85,800)
Saving in fixed cost = <u> 30,000</u>
M<em>onthly net loss </em><em><u> 55,800</u></em>
Annual financial disadvantage
Monthly net loss × 12 months
= (55,800) × 12
= $ (669,600)
Answer:
a. Yes
Based on the data given, it appears that specifications are being met.
Explanation:
a) Data and Calculations:
Sample 1 Sample 2 Sample 3 Sample 4 Sample 5 Average
12.5 13.4 13.0 13.2 12.9 65 13.00
12.7 13.2 13.6 12.7 13.5 65.7 13.14
12.9 13.0 13.3 13.3 13.2 65.7 13.14
13.2 13.1 13.4 12.7 13.2 65.6 13.12
Totals 51.4 52.7 53.2 51.9 52.7 261.9 52.4
Average 12.85 13.17 13.3 12.97 13.17 13.1
b) Using the law of averages, the process specifications of 12.45 and 13.35 minutes were not exceeded under any sample type. Therefore, it can be concluded that the process specifications are being met.
Given that <span>Dave Klein is a produce farmer in Northern California. His major customers
are grocery stores in the midwest. Dave's product is a perishable item
and will only last for about 2 weeks after it has been picked, so Dave
is concerned with getting his product to his customers quickly. he ships
almost daily when his produce is in season. However, he also needs to
be aware of the cost of shipping.
The form of shipping Dave will most
likely use is truck.</span>
Answer:
A. $10,000
Explanation:
We know that :
cost of goods sold = opening inventory + purchases - ending inventory
hence,
Ending Inventory = opening inventory + purchases - cost of goods sold
therefore,
Ending Inventory = $15,000 + $45,000 - $50,000
= $10,000
The ending inventory must equal: $10,000
Answer: A. The island of Atlantis has an increasing opportunity cost of producing potatoes and the production possibility frontier is bowed outward.
Explanation:
When there is an increasing opportunity cost of producing a good, the Production Possibilities Frontier (PPF) will be bowed out to represent that as more of the good is being produced, more of another good is being given up to do so.
For the island of Atlantis therefore, as they produce more of potatoes, they are giving up being able to produce whatever more and more of other goods they produce which is therefore leading to a PPF that is bowed outward.
