Solution:
By 9:00 AM, Andrew has answered 40 problems.
By 10:00 AM, Andrew has answered 70 problems.
So the marginal, or additional, gain from his work between 9:00 AM and 10:00 AM is
70−40=30 problems.
By 11:00 AM, Andrew has answered 90 problems.
By noon, Andrew has answered 100 problems.
So the marginal gain from the fourth hour, 11:00 AM to noon, is
100−90= 10 problems.
Answer:
Option A ( Initiator) is correct
Explanation:
Initiator is the purchasing role that Hannah is playing in this case. As she identified the need to buy a particular product i.e computers to solve the problem of the organization.
Answer:
The concept of economic profit ....... <u>alternative</u> two options.
If economic profit is positive .......... <u>Current </u>option.
If economic profit is negative............ <u>Other </u> option
Explanation:
Economic Profit is the excess of revenue associated with an option, over its costs (explicit external & implicit opportunity costs).
Example : Revenue - Direct explicit cost of production - opportunity cost (like interest on money invested, salary of job left foregone).
The concept is used to make decision between two<u> alternative</u> options. Given, zero economic profits imply indifference.
Positive Economic Profit implies - one should choose<u> Current </u>option, as it will make <u>Better off </u>, having more benefit than other option
Negative Economic Profit implies - one should choose <u>Other </u> option, as it wil make better off, having more benefit than the former considered option.
Answer:
A. Operating income would decrease by $100,000
Explanation:
The computation of the impact on operating income if Carver outsources is shown below:-
Particulars Per unit 3,000 units
Make Buy Make Buy
Direct material 410 1,230,000
Direct labor 110 330,000
Variable manufacturing
overhead 90 270,000
Opportunity cost 20,000
Purchase cost 650 1,950,000
Total cost 1,850,000 1,950,000
Operating income would decrease
= $1,950,000 - $1,850,000
= $10,000