Based on the following information, how much disability insurance coverage per month would be required:
? Mortgage payment -$1,600/month
? Household insurance -$100/month
? Car insurance -$200/month
? Gas and oil -$90/month ($30 commuting to and from work)
? Food -$200/month ($70 represents lunch at work which would be reduced by half if the meals were prepared at home)
Employer disability insurance would provide $500/month and it is doubtful that anything would be received from either Social Security or worker's compensation.
A) $1,525
B) $2,190
C) $1,495
D) $1,625
Answer: D
Explanation: D)
Home mortgage $1,600
Household insurance $100
Car insurance $200
Gas and oil, excluding commuting to work $60
Food, excluding additional cost of lunch at work $165
Less employer's disability $500
$1,625
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Sherman Manufacturing Company currently manufactures a component used in one of its products. The annual production costs for 10,000 components are as follows:
An outside company has offered to supply 10,000 units of the component for $12.50 each. If the company outsources the component, it will be able to rent out the idled factory space for $1,000 per month but will not terminate the product manager.Required:1) Which items are not relevant to this outsourcing decision?2) Identify any opportunity costs associated with this decision.3) Prepare a quantitative analysis that indicates whether the component should be outsourced.
What will be an ideal response?
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A. Natural B. Social C. Manufactured D. Human
The tax treatment regarding the sale of existing assets that are sold for more than the book value but less than the original purchase price results in a(n) ________
A) ordinary tax benefit B) capital gain tax liability C) recaptured depreciation taxed as ordinary income D) capital gain tax liability and recaptured depreciation taxed as ordinary income
An accessible channel means the marketer knows who the customer is and can specifically address that person.
Answer the following statement true (T) or false (F)