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3 years ago

Zion Manufacturing had always made its components in-house.

Business

1 answer:

OverLord2011 [107]3 years ago

7 0

Answer:

1. Alternative 1 = Produce Component K2 in-house and Alternative 2 = Purchase Component K2 from Bryce Component Works

Alternative 1 = Produce Component K2 in-house

Direct materials ($7.53 × 4,700 units) = $35,391

Direct labor ($2.29 × 4,700 units) = $10,763

Variable overhead ($1.96 × 4,700 units) = $ 9,212

Total Cost = $55,366

Alternative 2 =Purchase Component K2 from Bryce Component Works

Purchase Cost ($12 × 4,700 units) = $56,400

Total Cost = $56,400

If Zion decides to purchase the component from Bryce:

Incremental Costs = $56,400 - $55,366 = $ 1,034

Therefore, A Decrease in Operating Income of $ 1,034

Alternative 1 = Produce Component K2 in-house and Alternative

(It is cheaper to produce the component in-house than to purchase it)

Explanation:

Fixed Cost will be incurred in both alternatives, therefore they are irrelevant for this decision.

Choose the option that gives a lower cost. In this case Alternative 1 gives a lower cost.

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At the current prices of goods X and Y, the quantity demanded of good X is 10 units, and the quantity demanded of good Y is 5 un

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Answer:

When the price of good y increases by 10% it will result in the quantity demanded of x to increase by (0.6*10) =6%. The current quantity demanded of good x is 10 so a 6% increase will mean the quantity demanded of x will be (1.06*10)= 10.6

Explanation:

The cross elasticity of goods x and y is 0.6, which means that a one percent increase in price of good y will increase the demand for good x by 0.6%, this means that x and y are substitute goods, as when the price of y increases people tend to buy more of x.

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3 years ago

When entering traffic, you should activate your turn signal after

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Check traffic around you (rear, sides and front). Look for a gap of 4 to 5 seconds intraffic. Activate your turn signal (do this at least 100 feet before you make the lane change). Check your mirrors (rear-view then your side mirrors).

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3 years ago

A consumer products company wants more creativity in its research and development operations. The company has spent large amount

Ugo [173]

Answer:

• Diversify the workplace

• Use creativity- and mind-stimulating games

• Use (a) flexible workplace(s)

Explanation:

1. Diversify the workplace

Employees consisting of different types of people, in terms of age, social status, race, gender and ethnicity, can help boost creativity in the workplace. Different backgrounds and experiences from the members will allow for different ideas to flow among the team. Differences will also make the team appreciate each other and make the entire team versatile.

2. Use creativity- and mind-stimulating games

Games that are open ended and not structured can help boost creativity. Each participant will have a different response which will allow more development and inventive ideas. Research can be done through guessing games that stimulate the mind or artistic games such as acting scenes, etc.

3. Use (a) flexible workplace(s)

Office space with air-conditioners and four walls may restrict the amount of creativity and result in the same, dull, exhausted ideas over time. To increase the level of creativity, the team should use different workplaces randomly for a change of scenery. One day spent at a park, the next day could be spent in a laboratory and the next could be spent in a library. Different environments can spark new, fresh ideas that can assist with research and development.

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3 years ago

Read 2 more answers

Calculate the required rate of return for Mercury Inc., assuming that investors expect a 5% rate of inflation in the future. The

My name is Ann [436]

Answer:

Option C is correct.

The required rate of return for Mercury Inc., assuming that investors expect a 5% rate of inflation in the future is 18%.

Explanation:

Real risk free rate = 3%

Inflation Premium = 5%

Nominal risk free rate Rf = Real risk free rate + Inflation Premium = 3% + 5% = 8%

Market risk premium (Rm –Rf) = 5%

Beta = 2

As per CAPM, required rate of return = Rf + beta * (Rm – Rf) = 8% + 2 * 5% = 18%

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3 years ago

Bogart Company is considering two alternatives. Alternative A will have revenues of $147,400 and costs of $103,400. Alternative

GuDViN [60]

Answer:

B is better than A

Explanation:

Here, we want to compare “A” to “B”. It means if B’s amount is higher than A’s amount, it should be positive; If B’s amount is lower than A’s amount, it should be negative.

Net income for each alternative = Revenues – Costs

Since the net income is positive, B is better than A.

Please check attachment for for actual tabular calculations

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3 years ago