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brilliants [131]
2 years ago
5

Wood Chuck Furniture currently manufactures rocking chairs as its main product. Each chair uses one seat cushion and one back cu

shion with the following costs per set of cushions (one seat and one back): Direct materials $ 1 Direct labor 10 Variable overhead 5 Fixed overhead 8 Total $ 24 Shepert Company has contacted Wood Chuck with an offer to sell it 5,000 sets of cushions for $18 each. If Wood Chuck buys the cushions, $2 of the fixed overhead per unit will be allocated to other products. Should Wood Chuck make or buy the cushions
Business
1 answer:
andre [41]2 years ago
8 0

Answer:

Yes buy the cushions

Explanation:

The computation is shown below:

= Manufacturing cost - purchase cost

where,

Manufacturing cost is

= Direct materials + direct labor + variable overhead cost + fixed overhead cost

= $1 + $10 + $5 + $6

= $22

The fixed overhead cost is

= $8 - $2

= $6

And, Purchase cost is  $18

Savings cost is

= $22 - $18

= $4 per set

And, the number of sets is 4,000 cushion sets

So, total amount saved is

= 5,000 cushion sets ×$4 per set

= $20,000

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liubo4ka [24]

The current <u>demand falls</u> if the prices are likely to increase in the future whereas the current <u>demand rises</u> if prices are likely to decrease in the future.

<h3>What is demand?</h3>

Demand is one of the market factors that tells about the goods being purchased by the customers.

When the rates of goods are expected to be rise in the future, then the demand for those goods would downfalls. In contrast, the reverse case will make the demand enhancing. The rise or fall in demand also directly affects the supply by the producers.

Therefore, there is an inverse relationship between futuristic prices and the current demand for products.

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5 0
2 years ago
On a given morning, Franco sold 40 pairs of shoes for a total of $80 at his shoe store. a. Both the $80 and the quantity of shoe
ruslelena [56]

Answer:

b. The $80 is a nominal variable. The quantity of shoes is a real variable. 

Explanation:

A nominal variable is a variable that hasn't been adjusted for inflation. Prices quoted in the purchase of goods and services are usually nominal variables.

Nominal variable = real variable + inflation rate

Real variable is a variable that has been adjusted for inflation

Real variable = nominal variable - inflation rate.

I hope my answer helps you

3 0
3 years ago
Mr. Jones is a successful entrepreneur. He is currently planning a new business venture, but he doesn’t have sufficient funds fo
NeTakaya

Answer:

C) using his family home as collateral for a loan

E) mortgaging his factory building

Explanation:

Mr. Jones property rights include his family home and his factory building, and he is taking loans using both of them as collateral.

A: If someone sells a house or an apartment, they transfer their property rights.

B: If his company issues shares, they are not getting a loan, they are increasing their equity.  

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4 0
3 years ago
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Answer:

Differentiated Strategy

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8 0
3 years ago
Assistance provided to line managers in handling grievances is a customer satisfaction measure used in the _____ function of hrm
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Assistance provided .......................... used in the LABOUR RELATIONS functions of human resources management.
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7 0
2 years ago
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