Sparrow Co is currently operating at 80% of capacity and is currently purchasing a part used in its manufacturing operations for $8 a unit. The unit cost for Sparrow Co to make the part is $9, which includes $.60 of fixed costs. If 4,000 units of the part are normally purchased each year but could be manufactured using unused capacity, what would be the amount of differential cost increase or
decrease for making the part rather than purchasing it?
A) $12,000 cost decrease
B) $4,000 cost increase
C) $20,000 cost decrease
D) $1,600 cost increase
D
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Use the project described in the table to determine the total resources required for this project during week 1 if a worker is expected to devote half-time (four hours per day) to this project
Assume that the project work is conducted on a 5-day-per-week basis. Activity Duration Predecessor A 5 days -- B 4 days A C 5 days A D 6 days B E 6 days C, D F 6 days E A) 40 hours B) 20 hours C) 28 hours D) 36 hours
Jane is risk manager of ABC Manufacturing Company. She is trying to decide whether to self-insure her company's workers compensation exposure or to purchase insurance
Jane would like to use regression analysis to predict the number of workers compensation claims that will occur next year. The number of claims will be the dependent variable in the regression. All of the following would be reasonable independent variables to use EXCEPT A) number of employees. B) number of hours worked. C) total assets. D) payroll.
A wealthy art collector has decided to endow her favorite art museum by establishing funds for an endowment which would provide the museum with $1,000,000 per year for acquisitions into perpetuity
The art collector will give the endowment upon her fiftieth birthday 10 years from today. She plans to accumulate the endowment by making annual end-of-year deposits into an account. The rate of interest is expected to be 6 percent in all future periods. How much must the art collector deposit each year to accumulate to the required amount? A) $1,575,333 B) $ 736,000 C) $1,264,466 D) $ 943,396
Natarajan, Inc. had the following operating segments, with the indicated amounts of segment revenues and segment expenses: ExternalRevenues IntersegmentSales SegmentExpensesA$7,500,000 $600,000 $6,300,000 B 2,900,000 1,000,000 4,300,000 C 700,000 1,300,000 2,200,000 D 4,000,000 250,000 4,100,000 E 1,600,000 800,000 2,700,000 ?According to the revenue test, which segments would require disaggregation?
A. B and C. B. A and B. C. A, B, and D. D. C, D, and E. E. A, B, D, and E.