Financial intermediaries issue their own indirect securities and use the proceeds to purchase the
direct securities of other economic units.
Indicate whether the statement is true or false
TRUE
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Quality Products produces and sells screen-printed t-shirts to local organizations. The normal sales price per shirt is $12. Due to setup costs, they only accept orders of at least 100 shirts. The setup cost per order is $40 and the variable costs per
shirt are $3. Fixed overhead costs per month total $2,000. Quality Products has the capacity to screen-print as many as 5,000 shirts per month, but is currently producing around 3,000. On May 1, the company was approached by a local non-profit group who wishes to place a single order for 100 shirts. The non-profit group has indicated that they can only pay $5 per shirt. Required: A. List two qualitative factors that should be considered by Quality Products before accepting the special order. B. What are the total relevant costs of accepting the special order? C. From a quantitative basis, should they accept the special order? By what amount will Quality Product's net income increase or decrease if they accept the special order?
A decision in which a manager needs to determine whether a product line (or segment) should continue or be eliminated is what kind of decision?
A) relevant B) make-or-buy C) sell-or-process-further D) special order E) keep-or-drop
What are the five purposes of inventory?(1) ________(2) ________(3) ________(4) ________(5) ________.
What will be an ideal response?
The expected opportunity loss of the best decision alternative is the
A. expected monetary value. B. payoff. C. expected value of perfect information. D. None of these alternatives is correct.