Answer:
From a cost savings perspective the switch should be made in-house
Explanation:
In deciding whether Cool Systems should make or buy the switch , we calculate the relevant applicable to both situations,then compare t see which option saves costs.
The cost of making the switch is calculated thus:
Direct materials per unit $5
Direct labor $3
Variable overhead <u>$6</u>
Total relevant cost <u> $14</u>
The cost of purchasing the switch from another supplier is $15
From the above analysis, it is preferable to make the switch in-house as that option saves $1($15-$14) per switch.
However, it might be that we need to look beyond cost savings sometimes,purchasing the switch from another supplier might be viable if the quality of the outside switch is better or that the outside supplier can deliver in timely fashion.
Answer:
January 1, 2020
Bonds Payable 1600000 Dr
Loss on Redemption of bonds 36800 Cr
Discount on Bonds Payable 4800 Cr
Cash 1632000 Cr
Explanation:
The redemption of bonds before the maturity usually requires a payment for redemption which is a certain percentage of its face value. It is usually higher than the face value. The above bonds are redeemed at 102 which means at 102% of the face value of the bonds. Thus, the cash paid to redeem the bonds is,
Cash = 1600000 * 102% = 1632000
The bonds have a carrying value, which is the face value less discount or add premium, of,
Carrying value = 1600000 - 4800 = $1595200
If they are redeemed for an amount in excess of the carrying value, they are redeemed at a loss.
The loss on redemption is,
Loss = 1595200 - 1632000 = $36800
Answer:
The correct answer is letter "B": unfavorably; increases.
Explanation:
As a measure to control inflation in the economy, the Federal Reserve (Fed) tends to <em>increase </em>the interest rate. This to have banks request fewer loans from the central bank which will result in offering fewer credits to individuals. If people have fewer sources of debt, the possibilities that an economic bubble -<em>continuous increase in price due to continuous increase in demand</em>- appear decreases.
However, if people have fewer sources of debt, private investment decreases, causing an <em>unfavorable </em>panorama for financial institutions offering large portfolios of assets.
For Polaroid, the addition of the 3D pen to the U.S. market would be viewed as a <u>market development</u> strategy on product-market matrix.
<h3>What is a product-market matrix?</h3>
This refers to a business map that helps the Product Managers to map the strategic market growth of their products. This Matrix was named after Igor Ansoff, who was a a mathematician and business manager who published an essay outlining the matrix in the Harvard Business Review in 1957.
The 4 strategies of Ansoff Matrix (product-market matrix) includes:
- market penetration
- market development
- product development
- diversification.
In conclusion, the addition of the 3D pen to the U.S. market would be viewed as a market development strategy on product-market matrix.
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