Answer: $54,000 per production run
Explanation:
As we are dealing with the decision of whether or not to process the good further, the irrelevant cost would be the cost of producing product B from input R.
This is because this cost has already been incurred to produce product B and so is a sunk cost. Sunk costs are irrelevant to the decision to process further.
30,000 units of B were made from 90,000 units R so the cost of B is:
= 30,000 / 50,000 * 90,000
= $54,000
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<em>The options here are probably for a variant of this question.</em>
Cash flows from investing do not include cash flows from : Borrowing.
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Explanation:</u></h3>
The cash flows either inward or outward of any company refers to the Cash flow from investing activities. The long term usage of cash will be considered under this. The investing activities includes the following such as purchasing a fixed asset, selling a fixed asset. These assets includes any property, plants, equipment,etc.
The cash flows are associated with the generation or spending of amount in the investing activities. This is a section that is included in the cash flow statement of an organisation. Thus, the cash flows for investing activities will not include the cash flows from Borrowing.
Liability means to be responsible for something.
It also means that someone or something's presence will probably cause embarrassment or put someone at a disadvantage.
Answer:
Assuming that the elimination of frequent-flyer programs would have enabled the airlines to earn higher profits and remain in business, then it would be a purely good idea for the airlines to eliminate their frequent-flyer programs.
The big question is, how much did the frequent-flyer programs cost the airlines? Would the cost-savings be sufficient to eliminate their bankruptcies? It is a known-fact that the airlines that create such programs always recover the program costs by charging higher fares.
Explanation:
The issue of airlines going bankruptcy does not seem to stem from customer-loyalty programs like the frequent-flyer programs. The root cause lies in operational and other costs that airline managements have not been able to control.
