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Answer:
Explanation:
Make Buy Net income
Variable manufacturing costs $54,000 $0 $54,000
Fixed manufacturing costs $27,000 $27,000 $0
Purchase price $0 $67,500 -$67,500
Total annual cost $81,000 $94,500 -$13,500
Conclusion: Manson Industries should make the part as making part save cost than buying it.
<u>Workings</u>
Make Buy
Variable manufacturing costs 13500*4 0
Fixed manufacturing costs 13500*2 13500*2
Purchase price 0 13500*5
Answer:
B) When the price of ice cream rose, the quantity demanded of ice cream fell and the demand for ice cream topping fell.
Explanation:
A rise in the price of a good would lead to a fall in the quantity demanded of the good.
So, a rise in the price of ice-cream would lead to fall in the quantity demanded of ice cream.
A rise in the price of ice-cream would lead to a fall in the demand for ice cream toppings.
Answer:
Accountant 34,100 gain
Economist (6,500) loss
Explanation:
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<u>Accountant:</u>
revenue 60,000
operating cost 25,000
Interest expense 900 ( 30,000 x 3%)
net income 34,100
<u>Economist: </u>
revenue 60,000
explicit cost 25,900
<em>implicit cost (opportunity cost):</em>
savings yield:
20,000 x 3% = 600
painter job 40,000
economic loss (6,500)
