<span>It is reasonable to assume that sales supervisor reports to a sales manager, who would report to the general manager. The advertising manager would report to this same general manager.</span>
Answer:
Debit: $300
Credit: $300
Explanation:
See attached picture for explanation.
Answer: Economy- activities related to the production and distribution of goods and services in a particular geographic region
Explanation: I used quizlet to find the answer
Answer:
A. shopping product.
Explanation:
The answer is shopping product because it is a product in which the customer takes some time reviewing alternatives and characteristics before making the final purchasing decision.
B2B products refers to businesses that sell products to other bussinesses, specialty products are the ones customers specifically look because of a particular characteristic or the brand and they won't compare alternatives, convenience products are the ones a customer buys all the time and doesn't take a lot of consideration and unsought product are the ones that consumers don't know anything and are not interested in buying like funeral plans.
Question
Suppose Country Cafe restaurant is considering whether to (1) bake bread for its restaurant in-house or (2) buy the bread from a local bakery. The chef estimates that variable costs of making each loaf include $ 0.52 of ingredients, $ 0.23 of variable overhead (electricity to run the oven), and $ 0.78 of direct labor for kneading and forming the loaves. Allocating fixed overhead (depreciation on the kitchen equipment and building) based on direct labor, Country Cafe assigns $ 1.04 of fixed overhead per loaf. None of the fixed costs are avoidable. The local bakery would charge $ 1.74 per loaf.
- What is the absorption cost of making the bread
- What is the variable cost
- Should Country make the bread or buy
- What other factors should be considered
Answer
- Absorption costing cost per unit= $2.57
- Variable costing cost per unit=1.53
- It will be cheaper for Country Cafe to produce internally than to buy from outside as it will save $0.21 per unit of bread
- See explanation for other factors
Explanation:
Absorption cost= Direct cost + Variable overhead + Fixed overhead
= 0.52 + 0.23+ 0.78 + 1.04
= $2.57
Variable cost of making the loaf= Direct cost + Variable overhead
=0.52 + 0.23+ 0.78 = $1.53
$
Variable cost of making 1.53
External purchase price <u>1.74</u>
Extra cost of external purchase per unit <u>0.21
</u>
It will be cheaper for Country Cafe to produce internally that to buy from outside as it will save $0.21 per unit of bread
Non-Financial factors
Product Quality. Country Cafe needs to be sure that the quality of bread to be provided wont be undermined. should it decides to buy.
Trade secret: is there a guarantee that the contractor would not divulge or abuse the privileged information about the ingredients to be mixed and some other trade secrets
Delivery : Reliable and timely delivery are very important. Would the external supplier be able to meet expectations?
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