Consider the following scenario. two friends, rachel and joey, enjoy baking bread and making apple pies. rachel takes two hours to bake one loaf of bread and one hour to make one pie. joey takes four hours to bake one loaf of bread and four hours to make one pie. if rachel and joey decide to specialize in order to maximize their combined output, who should produce what? a) joey should specialize in making pies because he has an absolute advantage. b) rachel should specialize in making pies and joey should specialize in making bread c) joey should specialize in making pies and rachel should specialize in making bread. d) rachel should specialize in making bread and pies because she has a comparative advantage in both. e) rachel should not specialize because she is better at producing both

Ida sidha karya company is a family-owned company located on the island of bali in indonesia. the company produces a handcrafted balinese musical instrument called a gamelan that is similar to a xylophone. the gamelans are sold for $860. selected data for the company’s operations last year follow: units in beginning inventory 0 units produced 320 units sold 285 units in ending inventory 35 variable costs per unit: direct materials $ 135 direct labor $ 355 variable manufacturing overhead $ 30 variable selling and administrative $ 15 fixed costs: fixed manufacturing overhead $ 64,000 fixed selling and administrative $ 27,000 the absorption costing income statement prepared by the company’s accountant for last year appears below: sales $ 245,100 cost of goods sold 205,200 gross margin 39,900 selling and administrative expense 31,275 net operating income $ 8,625 required: 1. under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. prepare an income statement for last year using variable costing. what is the amount of the difference in net operating income between the two costing methods?

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Alicia has a collision deductible of $500 and a bodily injury liability coverage limit of $50,000. she hits another driver and injures them severely. the case goes to trial and there is a verdict to compensate the injured person for $40,000 how much does she pay?