Answer: $66.90 per unit
Explanation:
Cost that would be avoided is:
= Direct materials + Direct cost + Variable manufacturing overhead + part of fixed manufacturing overhead
= 20.80 + 26.50 + 6.90 + (36.10 - 31.40)
= $58.90
If the outside supplier commits to 59,000 units a year, the company should not pay more than:
= (Number of units supplied * Avoidable cost + contribution margin on other product (opportunity cost) ) / Number of units supplied
= (59,000 * 58.90 + 472,000) / 59,000
= $66.90 per unit
Answer:
The answer is: a change in the price at which a substitute good is sold
Explanation:
A shift in supply means a change in the quantity supplied at every price.
Let's assume we sell product A. If the price of a substitute product B increases, then the quantity demanded for product A will increase as the quantity demanded for product B decreases. That will cause an increase in the quantity supplied of product A, which may in turn rise the price of product A until again both products (A and B) match their prices.
Instead, a shift in the supply curve means that the quantity supplied of a product will change at every price level.
Answer:
Without e-commerce, small firms often lack the resources to expand beyond local markets.
Explanation:
In Business, e-commerce can be defined as a business model which involves the buying and selling of goods or products over the internet.
Generally, e-commerce comprises of four (4) business models and these are;
1. Business to Business (B2B).
2. Business to Consumer (B2C).
3. Business to Government (B2G).
4. Consumer to Consumer (C2C).
Without e-commerce, small firms who predominantly lack the resources to expand beyond local markets unlike larger business firm wouldn't be able to grow and develop into penetrating global markets.
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