Problem 1 (5 points) the steel can company has 100,000 obsolete cans in inventory at a cost of $5,000. the cans can be cut in half to make candle holders for $1,000. the candle holders can be sold for $1,750 in total. if the cans are scrapped, they could be sold for $450. which alternative should the steel can company accept, sell at cut off or process further? what is the relevant profit from each alternative? support your answers with the calculations you used to make your decision.

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.

Stormie zanzibar owns a bakery in the fictitious country of olombia. each month the government’s market ministry mails her a large list of the regulated price of goods which include products like bread, muffins and flat bread. the list also dictates the types of goods she can sell at the bakery and what she is to charge. because of the regulations placed on these goods, stormie has increased her production of sweets, pies, cakes, croissants and buns and decreased her supply of breads, muffins and flat bread. she has taken these steps because the sweet goods’ prices are not government controlled. stormie zanzibar lives under what type of economy?

Each state’s organizational structure is guided by the federal government. true or false?