Answer:
Sell option is preferred.
Explanation:
The decision whether to lease out the machinery that is surplus to requirement or sell outrightly is dependent on the differential analysis performed below.In the analysis I have compared the profits under each option in order to guide the final decision:
Differential analysis as at 7th November(Sale or lease option)
Sell option lease option
revenue from sell/lease option $180,000 $200,000
Brokerage commission(5%*$180,000) ($9,000) -
costs of repairs,insurance and property taxes - ($34,400)
Profits $171,000 $165,600
The sell option provides $5400($171,000-$165,600) than the lease option,hence the sell option is preferred.
One would have expect that the lease option since it has more revenue to preferable but the costs of repairs,insurance and property taxes were also on the high side
Answer:
The additional satisfaction from consuming one more unit of a good
Explanation:
Marginal utility falls as consumption increases.
The Marginal Rate of Substitution (MRS) is the rate at which consumers exchange quantities of units of one good number for another good at the same level of utility.
I hope my answer helps you
Answer:
The answer is: False
Explanation:
Whenever a company wants to go international it has a lot work to do before creating an international division. Several things must be done before, mostly research, for example:
- Research if your product is know overseas, is there any possible market for it, are there any restraints for your products in those new markets.
- Any legal constraint or logistical problem you have to consider.
- Any local competition you have to worry about.
- Does your product fit in a new culture.
- And very many etceteras.
That should all be done before considering spending money on creating an international division.
Probably when the internet didn´t exist, communications were scarce, no Tv existed, people in one country didn´t know anything about other cultures, etc., a comp nay would have first created an international division to scout foreign markets but right now it doesn´t make sense.
Answer:
a) $2000
b) $1,886.7925
C) $2,036.7925
Explanation:
First, the question states to determine the expected claim cost per policy
Expected Claim Cost represents the fund required to be paid by an insurer for a particular contract or a group of contracts as the case maybe. This is usually based on the policy taken.
A) Expected Claim Cost per policy
= (Policy Loss Value A x its probability) + (Policy Loss Value B x its probability) + (Policy Loss Value C x its probability)+(Policy Loss Value D x its probability)+ (Policy Loss Value E x its probability)
= ( (100000 x 0.005 )+ (60000 x 0.010) + (20000 x 0.02) + (10000 x 0.05) + 0 = $2000
Part B: discounted expected claim cost per policy
Since, the sum of $2000 is expected to be paid by the insurer by the end of the year, the interest to be earned based on the rate (discounting used)
=$2,000 ÷ (1 + 0.06)
= $1,886.7925
Part C:: Determine the Fair Premium
Fair Premium is calculated as follows
The discounted policy claim cost + the Processing Cost per application + The fair profit loading
= $1,886.7925+ $100+50 = $2,036.7925
Answer:
$270,000
Explanation:
Calculation of total manufacturing cost assigned to Job 436
Direct Materials
Dept A $50,000
Dept B $10,000
Direct Labor
Dept A ($80,000 x 1/2) $40,000
Dept B $60,000
Manufacturing Overheads
Dept A $80,000
Dept B ($60,000 x 50%) $30,000
Total $270,000
Therefore,
The total manufacturing cost assigned to Job 436 was $270,000.
