Answer:
Make since the relevant cost to make it is $58.35
Explanation:
![\left[\begin{array}{cccc}&$produce&$buy&$Differential\\$Purchase&-&-62.35&-62.35\\$Manufacturing Cost&-58.35&-&58.35\\$Allocate Cost&-11.55&-11.55&-\\$Total Cost&-69.9&-73.9&-4\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D%26%24produce%26%24buy%26%24Differential%5C%5C%24Purchase%26-%26-62.35%26-62.35%5C%5C%24Manufacturing%20Cost%26-58.35%26-%2658.35%5C%5C%24Allocate%20Cost%26-11.55%26-11.55%26-%5C%5C%24Total%20Cost%26-69.9%26-73.9%26-4%5C%5C%5Cend%7Barray%7D%5Cright%5D)
<u></u>
<u>The manufacturing cost will be:</u>
direct material 7.70
direct labor 23.70
Overhead 38.5 x 70% = 26.95
Total manufacturing cost 58.35
Allocated cost 11.55
The purchase cost is higher than our manufacturing cost of 58.35
It is better to make the unit.
The purchase option generates a differential loss for $4
Answer:
Rate of interest is 8.37%
Explanation:
Future Value = 
3,500 = 2750 
=
![\sqrt[3]{\frac{3500}{2750}}](https://tex.z-dn.net/?f=%5Csqrt%5B3%5D%7B%5Cfrac%7B3500%7D%7B2750%7D%7D)
= ![\sqrt[3]{(1+r)^{3}}](https://tex.z-dn.net/?f=%5Csqrt%5B3%5D%7B%281%2Br%29%5E%7B3%7D%7D)
1.0837 = 1+r
r = 1.0837 - 1
r = 0.0837
r = 8.37%
Check:
3500 = 2750 
3500 = 3500
The given statement " The market for factors of production connects spending by firms to household income " is TRUE
Explanation:
When goods and services markets were the only businesses open, corporations would ultimately have everything they wanted in a single business, consumers would have all the finished products and industry would end.
The word "factors of production" refers to everything a manufacturer uses to make a final product.
Types of production factors are labour (work was carried out by people), equipment (machinery for the processing of products), land and so on.
Job markets are the most widely contested type of a factor market, but it should be noted that output factors can take many forms.
<u>Franchisers are firms that have their product created, designed, financed, and initially produced in the home country but rely heavily on foreign personnel for further production, marketing, and human resources</u>-This Statement is True
Explanation:
<u> A franchiser is a type of organizational structure where a product is created, designed, financed, and initially produced in the home country, but for the product specific reasons like cost or product perishiability it relies heavily on foreign personnel for further production, marketing, and human resources</u>
<u>Some example of the companies that follow this concept are McDonald's,Coca-Cola.</u>
