Answer:
It is better to cleaned and shipped to the firm's outlet center at a cost of $23,000 to be sold at $80,000
Explanation: In alternative A) the firm loss is $80,000 ($125,000-$45,000)
In alternative E) all $125,000 is lost
In alternative B, C and D) the loss is $68,000 ($125,000-$80,000+$23,000)
Relevant costs are those evitable, that are cause of a manager decision related to an specific business decision.
The only cost that can be avoided in these example is the cost of $23,000 so the goods can be cleaned and shipped to the firm's outlet center
A.exclusive it’s not an intense level of distribution
Answer:
C. be held liable under the misappropriation theory of insider trading.
Explanation:
Insider trading refers to the practice of utilizing confidential information that is not available for the public in order to make a profit in stock market. Currently, this action is deemed as illegal ever since the The Insider Trading Sanctions Act was created in 1984 .
The Security and Exchange omission created that act in order to ensure that no investors have to experience unfair situation in the market . Having confidential information will make it really easy for a person to predict whether the price of the stock will go up or down.
This can be seen In Bart's action. Pay attention to this part of the excerpt:
<em>Bart learns from Alway's company files that Steel Co. is in the final stages of negotiation for a highly profitable </em>
Answer:
Fixed costs= $73,760
Variable cost= $159,430
Explanation:
<u>First, let's separate the factory overhead costs:</u>
<u></u>
Power and light 40,450
Factory insurance 23,560
Production supervisor wages 118,980
Production control wages 30,930
Factory depreciation 19,270
<u>Now, the fixed and variable costs:</u>
Fixed costs= Factory insurance 23,560 + Production control wages 30,930 + Factory depreciation 19,270
Fixed costs= $73,760
Variable cost= Power and light 40,450 + Production supervisor wages 118,980
Variable cost= $159,430
b. The optional pricing strategy (O.P.)
More about optional pricing:
When a company uses optional product pricing, it sets a base product at a lower cost and additional, optional products at a higher price to make up for any losses. Optional products are not required for the base product to function, but they typically improve the customer experience.
The two key components of optional product pricing:
- A base product is the main draw for the customer or the reason they are purchasing. It meets the needs of the customer and does not require the optional product to function.
- A complimentary product(s): A product that a customer who purchased the base product is likely to purchase in order to improve their experience with the base product.
Learn more about pricing here:
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