Answer:
The purchasing department increased operating profits by almost three times the amount that the additional sales generated.
Explanation:
The sale of $30 million in additional products generated $3.6 million in additional operating profits (= $10 million x 12%).
But the savings generated by the purchasing department increased operating profits by $10 million, which is almost three times the amount that the additional sales generated: $10 million vs. $3.6 million.
Answer:
The correct option is D, savings of $12000
Explanation:
The first year financial impact of hiring outside company for grounds maintenance can be calculated by examining relevant costs for both alternatives.
Relevant costs to the University of handling the maintenance is given as;
Salary of full-time gardeners $295,000
Plant materials $80000
Fertilizer $9000
Fuel <u>$8000</u>
Total relevant costs <u>$392000</u>
The relevant costs of outsourcing the services is given below:
Mackin services $410000
Proceeds from disposal of equipment (<u>$30000)</u>
Relevant costs <u> $380000</u>
The savings by choosing the latter is $12000( $392000-$380000)
Please note the cost of equipment is not a relevant cost as it is a sunk cost.
When a country can produce a product more cheaply than its trading partners, it is known as: <span>comparative advantage
For example, United States often imported exotic fruits from Brazil. Since Brazil is a tropical country, the cost in producing exotic fruits will be significantly lower compared to growing it in the United States. Therefore, we can say that brazil has a comparative advantage in this product compared to united states.</span>
Answer:
Deal
Explanation:
The deal is the business term that is done between any two persons in order to generate the benefit for both the parties
Here in the question, the two for one rise the trial between the future customers or its is against the actions of a competitor
Just as example = short term price reductions
It benefits for both the parties i..e for the buyer it gets in less price and for selling one product is sold and get some margin on it
Therefore it is a deal situation
Answer:
$452
Explanation:
The amount of depletion per ton is computed below.
= (Acquired cost of coal mine + Intangible development costs + Fair value of the obligation - Sale value) ÷ Number of estimated tons of coal extracted
= ($1,920,000 + $353,000 + $193,000 - $208,000) ÷ 5000
= $452
The amount of depletion per ton is therefore $452