Answer:
Economies of scale.
Explanation:
Economy of scale means a proportionate saving in costs gained by an increased level of production.
The three methods of calculating balance charges on credit cards are:
- average daily balance method (excluding and including newly billed purchases.
<h3>How can we calculate a credit card balance ?</h3>
Calculation of the credit balance can be done generally by dividing the average daily balance totals by the total number of days in the billing cycle.
Then the result is then multiplied by the monthly interest rate, however all the listed method can as well be used.
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Answer:
Physical budget.
Explanation:
A budget can be defined as the total amount of money that is required for a particular purpose. A budget shows how an individual decides to spend his/her income.
A good budget must start with the individual source of income, that is the person source of money. It is very important for an individual to know how much comes in so as to effectively plan his expenses.
Jonathan Wynn has developed a physical budget by putting a specific amount of money in different envelopes which he plans to spend each month.
Answer:
Increase by $31,500
Explanation:
Calculation to determine the operating income
First step is to calculate the Total relevant cost
DIFFERENTIAL ANALYSIS
MAKE BUY
Variable cost $144,900 $0
(2,100*$69)
Fixed cost $46,200 $0
(2,100*55*40%)
Purchase cost $0 (2100*76) = $159,600
Total relevant cost $191,100 $159,600
Now let determine the Increase or decrease of the company's operating income
Increase by =($191,100- $159,600)
Increase by = $31,500
Therefore Buying the valves from the outside supplier instead of making them would cause the company's operating income to: Increase by $31,500
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