Answer:
It is cheaper to make the part in house.
Explanation:
Giving the following information:
Harrison Enterprises currently produces 8,000 units of part B13.
Current unit costs for part B13 are as follows:
Direct materials $12
Direct labor 9
Factory rent 7
Administrative costs 10
General factory overhead (allocated) 7
Total $45
If Harrison decides to buy part B13, 50% of the administrative costs would be avoided.
To calculate whether it is better to make the par in-house or buy, we need to determine which costs are unavoidable.
Unavoidable costs:
Factory rent= 7
Administrative costs= 5
General factory overhead= 7
Total= 17
Now, we can calculate the unitary cost of making the product in-house:
Unitary cost= direct material + direct labor + avoidable administrative costs
Unitary cost= 7 + 5 + 5= $17
It is cheaper to make the part in house.
Answer:
Ans is D
Gross investment is the expenditure spent on purchase of capital for future production.
Gross investment has main 3 component
business fixed investment, residential investment and inventory investment
Answer:
Social companionship
Explanation:
Social companionship is a type of friendship or relationship between individuals who share similar likes and benefit from each other as they feel a sense of closeness doing things they like together. Donovan and Keith, who share some similarities and likes between each other, provide social companionship to each other as they hang out together as fans of a club.
<span>Having a nominal interest rate less than 0 would mean that a depositor pays a bank to hold its money. If the annual nominal interest rate is negative 1 percent, a deposit of $1000 dollar would come out $10 dollar short the following year which is why someone with dollar bills will never agree to loan with a nominal interest rate that is negative percent.
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For simplicity, we will assume 52 weeks in a year (instead of 365 days).
The rate of interest per week actually charged is
Effective Annual Rate (
EAR) is obtained by <em>compounding</em> the weekly rate for one year (52 weeks)
=
4454629.97%note: most calculators may not display this value with sufficient accuracy.
The corresponding
APR is obtained by <em>multiplying</em> the weekly rate by 52
=1188.57%