Since Ritz Products must have the semiconductor, its best decision should be to purchase the semiconductors. The decision to purchase has an expected cost of $2,200,000.
- This will be far less than the cost of producing the semiconductor because the probability of success for the production option is only 0.4 with a higher failure probability of 0.6 involving additional cost of $2 million.
- Whereas, the cost of purchasing the semiconductors is only $2.2 million, calculated as follows:
Cost of Purchase:
Variable cost = $1.2 million (3 million x $0.40)
Fixed cost = $1 million
Total costs = $2.2 million
Thus, it will cost Ritz Products only $2.2 million to purchase the semiconductor.
Learn more about buy or make decisions at brainly.com/question/8821357 and brainly.com/question/14270406
Answer:
The answer is ' a profit of $14 million
Explanation:
Revenue = $24 million
Total expenses = $10 million
Profit(loss) = Revenue minus total expenses
$24 million - $10 million
Profit = $14 million.
It is a profit because revenue is greater than total expenses. Adventure Enterprises will report a loss if reported total expenses was greater than reported revenue
Payday loans are B. harder to pay back because of low fees and high intesest rates. Payday laons are small amount loans that are given to a person with a high interest rate. These loans are deemed to be paid back to the lender when the borrow receives their next paycheck.
Answer and Explanation:
The journal entries are shown below:
Account Receivable $409,500
To Sales Revenue $367,000
To Unearned Service Revenue $42,500
(Being account receivable is recorded)
Cost of Goods Sold $310,000
To Merchandised Inventory $310,000
(Being cost of goods sold is recorded)
These two journal entries are to be recorded
