Answer:
The correct answer is letter "A" and "C": An increase in the family's car payment means the family will be unable to afford a vacation; A newer model offers better protection and functions but is more expensive than an older model.
Explanation:
Trade-offs are the result of comparing what must be acquired with what should be given up to satisfy most of a need. While selecting a new vehicle, a family must consider its capacity, size, and price. Besides, they will have to evaluate all the could be left behind for incurring such expenses like buying a new piece of furniture of use of most members of the family, remodeling part of the house or going on a family vacation.
Answer:
The partial labor and capital productivity figures for the parent and subsidiary is 5.03 units per hour, 1.37 units per hour and, 1.68 units per hour, 4.20 units per hour
Explanation:
The computation of the partial labor for the parent and subsidiary is calculated by applying the formula which is shown below:
= Sales ÷ Labor (hours)
For U.S = 100,080 units ÷ 19,880 hours = 5.03 units per hour
For LDC = 20,500 units ÷ 14,880 hours = 1.37 units per hour
The computation of the capital productivity for the parent and subsidiary is calculated by applying the formula which is shown below:
= Sales ÷ Capital equipment (hours)
For U.S = 100,080 units ÷ 59,400 hours = 1.68 units per hour
For LDC = 20,500 units ÷ 4,880 hours = 4.20 units per hour
Answer:
Profit decrease = $6,000
Explanation:
As per the data given in the question,
a)
Calculation for buying and making product :
Particulars Per unit Differential cost 22,000 units
Make Buy Make Buy
Cost of buying $44.50 $979,000
Cost of making :
Direct material $5.60 $123,000
Direct labor $6.00 $132,000
Variable manufacturing
overhead $3.6 $79,200
Fixed manufacturing
overhead $4 $88,000
($12 × 1 ÷ 4)
Opportunity cost $551,600
Total cost $19.2 $44.50 $973,800 $979,000
b) As we can see that the Profit is decrease by $6,000 in case of outside supplier offer accepted by taking the difference between the making and buying cost i.e
= $979,000-$973,800
= $6,000
Answer: d. The firm's cash position in 2015 and 2016 would increase.
Explanation:
The financila statements had been calculated with the view that fixed assets would be depreciated over a 20 year period. However, it was discovered that the assest should be depreciated over 15 years instead. This reduction in the period would have the effect for increasing the depreciation payment.
For example, say the asset cost $20,000 and was originally to be depreciated over 20 years using Straight Line Depreciation. This means that the depreciation per year would be,
= 
= $1,000 a year.
If it was however discovered that it was supposed to be 15 years that figure would go to,
= 
= $1,333.33 a year
Notice how depreciation increased. Lucy's Music emporium will therefore see their depreciation cost rise. Depreciation is subtracted from revenue as it is tax deductible. When Lucy's Emporium deduct this new depreciation, they will have less profit. They will be taxed on this less profit and so pay a lower tax. This will thus increase their cash holdings because Depreciation is a non cash expense and does not actually require a cash payment.
