Ring company makes telephones. currently, ring makes all components of the telephones in-house. an outside company has offered to supply one component, part number x76, for $12 each. ring uses 22,000 of these components per year. costs of x76 are as follows: direct materials $3.00 direct labor $1.50 variable overhead $2.75 fixed overhead $5.00 suppose that 30% of the fixed overhead is avoidable if part x76 is not made by ring. should ring purchase the part from the outside supplier? a. yes, income will increase by $10,500. b. yes, income will increase by $74,500. c. no, income will decrease by $15,000. d. no, income will decrease by $71,500.

Precision aviation had a profit margin of 6.25%, a total assets turnover of 1.5, and an equity multiplier of 1.8. what was the firm's roe? a. 15.23%b. 16.03%c. 16.88%d. 17.72%e. 18.60%

Suppose that a paving company produces paved parking spaces (q) using a fixed quantity of land (t) and variable quantities of cement (c) and labor (l). the firm is currently paving 1,000 parking spaces. the firm's cost of cement is $3 comma 600.003,600.00 per acre covered (c) and its cost of labor is $35.0035.00/hour (w). for the quantities of c and l that the firm has chosen, mp subscript upper c baseline equals 60mpc=60 and mp subscript upper l baseline equals 7mpl=7. is this firm minimizing its cost of producing parking spaces?

Which of the following statements is not correct? the stock of publicly owned companies must generally be registered with and reported to a regulatory agency such as the sec. when stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public, or an ipo," and the market for such stock is called the new issue or ipo market. "going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares. if you wanted to know what rate of return stocks have provided in the past, you could examine data on the dow jones industrial index, the s& p 500 index, or the nasdaq index.