Answer:
The question lacks completeness; below is the full inquiry:
A company experienced a decrease in sales following negative press concerning a scandal linked to safety reports. Are the strategic adjustments made by the company to manage this situation reactive changes?
(A) True
(B) False
The right answer is (A) True
Explanation:
This indicates that external factors impacting the company's environment affect the sales of its goods and services.
Instructions are provided below. It is necessary to provide the following details: The machine cost $120,000, and it has an estimated lifespan of four years or 920,000 cuttings, after which it could be sold for $5,000. Each depreciation method employs a different formula. For straight-line depreciation, the annual expense remains constant, while in double-declining balance, the annual depreciation expense reduces over time. Conversely, the units of production method varies the expense based on usage. A) Straight-line: Annual depreciation = (original cost - salvage value) / estimated lifespan (in years) = (120,000 - 5,000)/4 = $28,750 yearly. B) Double declining balance: Annual depreciation = 2 * [(book value) / estimated lifespan (years)]: Year 1 = 2*(115,000/4) = 57,500; Year 2 = 2*[(115,000 - 57,500)/4] = 28,750; Year 3 = 2*[(57,500 - 28,750)/4] = 14,375; Year 4 = 2*[(28,750 - 14,375)/4] = 7,187.5. C) Units of production: Annual depreciation = [(original cost - salvage value)/ total production capacity in units] * units produced: Year 1 = [(115,000)/920,000]*200,000 = $25,000; Year 2 = (0.125)*350,000 = 43,750; Year 3 = 0.125*260,000 = $32,500; Year 4 = 0.125*110,000 = $13,750.
Answer:
The answer is C.
Explanation:
According to the provided details:
Hudson Co. is manufacturing 1,000 units of a vital component at the cost of $54,400 for direct materials, $24,000 for direct labor, $14,400 for variable overhead, and $16,000 for fixed overhead. If they opt to buy the component instead, Hudson could eliminate $9,600 of fixed overhead expenses. The company aims to reduce expenses and prefers to obtain the component externally.
Make in house:
Variable cost per unit = (54,400 + 24,000 + 14,400)/1000= 92.8
Total expenses = 92.8*1000 + 9600= $102,400
