Answer:
The correct answer is letter "C": a tie-in sale.
Explanation:
A tie-in sale is one where the purchase or rent of an object is only possible if another is also bought. Companies tend to use this practice to offer goods and services in bundles where all the products being sold are not necessarily of interest to the buyer but generates more profit or the seller.
Answer:
The number of new clients will increase by
12/3 = 4
Therefore, the number of new clients will increase by 4.
Explanation:
In getting new client, Sam takes 5hours, while Terasa takes 3hours.
In preparing food, Sam takes 10hours while Teresa takes 12hours.
It can be seen that Sam has absolute advantage and comparative advantage in preparation of food, while Tesesa has absolute advantage and comparative advantage in getting new client.
Sam with the comparative advantage in food preparation will take over preparing food for one more event by taking the necessary time away from getting more clients, and Teresa will use the freed-up time from not preparing food for one event to get more clients.
Teresa will free up 12hours she used in the preparation of food.
Since she use 3hours to get new client, She will get
12/3, which equals 4 number of clients
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I’m not sure.. hope it’s correct!
Answer:
Unit product cost = $107
Explanation:
<em>Absorption costing is a method of costing where production units and inventories are value at the full cost per unit. Here, fixed overheads are charged to all units produced using an overhead absorption rate</em>
The full cost per unit = D.mat cost + D.labour cost + Variable overheads+ Fixed overheads
Fixed production overhead cost per unit
=Fixed manufacturing overhead/units produced
= $43,700/ 1,900 Units
=$23 per unit
Full cost per unit
= $42 + $31 + $11 + 23
= $107
Answer:
Unitary cost= $46.4 per unit
Explanation:
Giving the following information:
Direct materials $9.60 per unit
Direct labor $19.60 per unit
Overhead costs for the year:
Variable overhead $9.60 per unit
Fixed overhead $121,600
Units produced 16,000 units
Under absorption costing, the fixed overhead is allocated to the cost of the product. Therefore, we need to calculate the unitary fixed overhead.
Unitary fixed overhead= 121,600/16,000= $7.6
Now, we can calculate the unitary cost of production:
Unitary cost= direct material + direct labor + total overhead
Unitary cost= 9.6 + 19.6 + 9.6 + 7.6= $46.4 per unit
