Answer:
If the company makes the units in-house, it will save $10,000.
Explanation:
<u>The fixed costs will remain in both options. Therefore, the fixed costs are irrelevant to the decision-making process.</u>
<u></u>
Buy:
Total cost= 10,000*16= $160,000
Make in house:
Total cost= 10,000*(9 + 4 + 2)= $150,000
If the company makes the units in-house, it will save $10,000.
Answer:
b. Purchasing power parity
Explanation:
The purchasing power parity theory is based on a world price for equivalent goods. This means that a good in the United States will cost the same as a good in Canada. Since the price of the good is $US 100 in the United States, then the same good should cost the equivalent of in Canadian dollars.
Answer:
$127,020
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow each year from year 1 to 4 = $37,500
I = 7%
PV = $127,020
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
Answer:
C. An intermediary that makes goods convenient for businesses to
buy.
Explanation:
Wholesalers are businesses that buy finished products from manufacturers and sell them to retailers. They are members of the supply chain. Wholesalers buy goods in bulk, break the bulk, and sell them to retailers. In some instances, some wholesalers may sell directly to consumers.
Retailers are businesses that sell to end consumers. They are the primary customers to wholesalers. Therefore, wholesalers are intermediaries who sell to other businesses.
