Answer:
$15,780
Explanation:
The sticker price for a vehicle with all the features is the total of all the given cost elements.
These include the retail price, destination charge, cruise control, custom sound etc.
Hence, the sticker price for the vehicle
= $13,760 + $475 + $800 + $235 + $510
= $15,780
Answer:
It is False
The law of one price (LOOP) states that in the absence of trade frictions (such as transport costs and tariffs), and under conditions of free competition and price flexibility (where no individual sellers or buyers have power to manipulate prices and prices can freely adjust), identical goods sold in different.
Answer:
Variable cost= $42
Explanation:
Giving the following information:
Each unit is sold for $50
Direct material worth $30
Direct labor worth $5.
Manufacturing overhead cost is $10 per unit of which 70% is variable.
The incremental cost is the variable cost (there is available capacity)
Variable cost= direct material + direct labor + variable manufacturing overhead = 30 + 5 + (10*0.7)= $42
Answer:
a. True
Explanation:
The sole proprietorship and partnerships outnumber corporations in United States but they net fewer sales and less income than corporations, individually and when combined.
Cost = $4,000
Revenues = $3,200 per year
Life = 5 years
Payback period calculation:
Year ----- Cash flow -------- Investment
Yr 0 ----- ------------ -4,000
Yr 1 ------ 3,200 ----------- -800
Yr 2 ------ 3,200 -------------- 0
Payback period lies between year 1 and 2.
Therefore,
Payback period = 1+ 800/3200 = 1+0.25 = 1.25 years
