Jan wants to save a $2000 gift from her grandparents, and add $50 per month as emergency funds. she has narrowed her search for a savings account to 2 banks, bank a and bank b. bank a pays a fixed rate of interest, and bank b pays a variable rate, but both rates are currently the same. what advice would you give jan about how to choose an account based upon her own needs?
(a) the fees and services will make a much bigger difference than the type of interest while your balances are small.
(b) the more that you expect to save, the more you should think about what effect the interest rates might have on your finances.
(c) choose the variable rate, because no matter what the fees are, if it goes way up, you could become richer.

Make or buy eastside company incurs a total cost of $120,000 in producing 10,000 units of a component needed in the assembly of its major product. the component can be purchased from an outside supplier for $11 per unit. a related cost study indicates that the total cost of the component includes fixed costs equal to 50% of the variable costs involved. a. should eastside buy the component if it cannot otherwise use the released capacity? present your answer in the form of differential analysis. use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers. cost from outside supplier $answer variable costs avoided by purchasing answer net advantage (disadvantage) to purchase alternative $answer b. what would be your answer to requirement (a) if the released capacity could be used in a project that would generate $50,000 of contribution margin? use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers.