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Juliette [100K]
3 years ago
12

Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $10.50; direct

labor, $14.50, variable overhead, $3.50 and fixed overhead, $8.50. An outside supplier has offered to sell the product to Axle for $37.00. Compute the net incremental cost or savings of buying the component.
Business
1 answer:
Sav [38]3 years ago
3 0

Answer:

$8.50

Explanation:

Computation for the net incremental cost or savings of buying the component.

Using this formula

Incremental cost = Purchase price -Cost savings

Let plug in the formula

$37 - ($10.50+ $14.50 + 3.50)

Incremental cost=$37-$28.5

Incremental cost= $8.50

Therefore the net incremental cost or savings of buying the component is $8.50

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For most people, the purchase of a Ford automobile would employ which type of consumer decision making? a.Generic decision makin
sashaice [31]

Answer:

1. B

2. E

Explanation:

1. Consumer or buyers use the extended decision making as it is that decision making which involves high level of the purchase involvement, extensive internal and the extensive information search with complex evaluation of the alternatives. In case of automobiles, buyers will choose the extended decision making as it is expensive, infrequently purchased products.

2. As there is involvement of high risk of financial loss in the future purchasing power, for people or consumer, the automobiles have the situational involvement, it is the short term state which directs towards the attaching relevance of a situation or person. In other words, it is an state where, it establish a level of involvement when a consumer or person think of a specific situation or object.

8 0
4 years ago
What is the stock price per share for a stock that has a required return of 12%, an expected annual dividend of $3.15 per share
Simora [160]

Answer:

Price per share = $78.75

Explanation:

<em>The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.</em>

If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:

Price=Do (1+g)/(k-g)  

Where Do- Dividend now, g- growth rate, k- required rate of return(cost of equity)

<em>Note Do (1+g) represents the expected dividend in the first year</em>

DATA:

Do (1+g) = 3.15

g= 8%

k= 12%

Price per share = 3.15/(0.12- 0.08) = $78.75

Price per share = $78.75

5 0
3 years ago
Free trade refers to a situation where _____. taxes are not imposed on goods that are produced and sold within a country goods a
mrs_skeptik [129]
<span>Free trade refers to a situation where the government doesn't restrict what goods and services it's citizens can purchase or sell to another country. taxes are not imposed on goods that are produced and sold within a country goods and services are offered for free to the citizens by a government a government does not try to influence what its citizens can buy from global markets firms that function in a country are not taxed on the profits that they generate</span>
3 0
3 years ago
Three years ago, Sydney remodeled her home. Rather than discarding some shelving units that were in her home, she moved them to
Alisiya [41]

The correct answers are, $1200 and -$200.

Sydney has taken depreciation on the shelves of $300. The amount of basis and the amount of the gain or loss recognized on the sale of the shelves are $1200 and -$200 respectively.

Explanation:

Fair market value at the date of conversion = $1,500

Depreciation on the Shelves = $300

Basis = Fair market value - Depreciation

Basis = $1500 - $300 = $1,200  

So Basis = $1,200

Now

Sale Price of Shelves = $1,000

Adjusted Basis = $1,200

Loss would be = Sale price - Adjusted Basis

Loss = $1000 - $1200

Loss = -$200

So, Loss = $200

Learn more about depreciation at:

brainly.com/question/10456007

#LearnWithBrainly

4 0
3 years ago
Based on this​ information, you can say that the overall​ "price level"​ ___________. A. remained unchanged during the year sinc
Harman [31]

Answer:

D. there is not enough information to determine the change in the overall price level.

Explanation:

A price level is the average of current prices across the entire spectrum of goods and services produced in the economy.  To determine the price level, information about current and past period's prices of a basket of goods and services is needed to be compared.

It is only the availability of two or more sets of such information that will enable a comparison to be made and for conclusions to be drawn.

3 0
3 years ago
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