11. Micro Enterprises has the capacity to produce 10,000 widgets a month,and currently makes and sells 9,000 widgets a month.Widgets normally sell for $6 each,and cost an average of $5 to make,including fixed costs.The monthly fixed costs are $18,000.Coyote has offered to buy 1,500 widgets (all or nothing) for $4 each. Should the offer be accepted?
A) No,because it will lose $1 per unit
B) No,because the opportunity costs are less than the gains
C) No, (indifferent or worse) because the opportunity costs equal the gains
D) Yes,because it makes $1 per unit in the short run
E) Unable to determine
Correct Answer:
Verified
Q1: Performance measures:
A)are critical in designing a reward
Q2: Micro Enterprises has the capacity to
Q4: Internal control systems:
A)are the responsibility of the
Q5: The firm's information system:
A)is always a single
Q6: An internal accounting system should:
A)provide information to
Q7: Identify all the correct statements:
A)Managers naturally seek
Q8: Economic Darwinism:
A)explains why firms persist in inefficient
Q9: Management accountants mainly are:
A)Internal consultants
B)Scorekeepers
C)Focused on calculating
Q10: Micro Enterprises has the capacity to
Q11: Micro Enterprises has the capacity to
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