The Norran Company needs 15,000 units of a certain part to use in its production cycle. If Norran buys the part from Waterloo Company instead of making it, Norran could not use the released facilities in another activity; thus, all of the fixed overhead applied will continue regardless of what decision is made. Accounting records provide the following data: Cost to Norran to make the part: Direct
materials, $3 Direct labor, $12 Variable overhead, $13 Fixed overhead applied, $8 Cost to buy the part from the Waterloo Company, $27 In deciding whether to make or buy the part, Norran's total relevant costs to make the part are
a. $360,000.
b. $240,000.
c. $420,000.
d. $405,000.
C
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Average collectors of an artist's miniatures will buy four new miniatures each year. The collectibles are available at a number of retail locations and from several catalog retailers To ensure she gets a greater ________, the owner of The Door Gift Shop sends her customers who are collectors a postcard every time the store adds a new one to her store's inventory.
A) share of communication B) segment profile C) customer allocation D) share of customer E) brand perception
The starting point in the strategic market planning process is:
a. identification of opportunities. b. definition of mission and goals. c. identification of markets in which the firm will compete. d. definition of the profit dynamic. e. SWOT analysis.
The premiums charged by marine insurance companies on an international transaction depend on all of the following except
A. the volume of business. B. the age of the ship. C. the nationality of the shipper. D. whether the goods are stowed on deck or under deck. E. how the good are packed.
Which of the following is a major consideration when analyzing a special pricing decision?
A) The sales price must be high enough to cover any differential costs to fill the order. B) The company must have a good stock turnover ratio. C) The profit margin of the special sale must be higher than the regular sales. D) The sunk costs of the decision must not exceed the irrelevant costs.