No one is too old to study
Answer:
True.
Explanation:
Because.
Answer:
truee
Explanation:
Help
Sove & Exit
Submit
For the current fiscal year, Purchases were $350,000, Purchases Returns and Allowances were $5,000 and Freight In was $29,000. If the
beginning merchandise inventory was $210,000 and the ending merchandise inventory was 595,000, the Cost of Goods Sold is:
Answer:
212,000
Explanation:
1. During a recession, what specific actions in fiscal policy will the government do to help the economy? What specific actions in monetary policy will the Fed do to help the economy?
2. During an inflationary period and heated economy, what specific actions in fiscal policy and monetary policy will be expected?
Answer:
1.
Specific fiscal policies
increase government spending
reduce taxes
Specific monetary policies
open market purchase
lower interest rate
2.
Specific fiscal policies
reduce government spending
increase taxes
Specific monetary policies
open market sale
increase interest rate
Explanation:
Recession is when the GDP of two consecutive quarters is negative. the goal of policies at this time would be to increase spending
Inflation is a persistent rise in the general price levels. The goal of policies would be to reduce money supply
Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.
Discretionary fiscal policies can either be expansionary or contractionary
Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes. Expansionary fiscal policy should be carried out in a recession. Cutting taxes increases disposable income and spending
Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes. This should be carried out in an inflationary period
Monetary policy are policies taken by the central bank of a country to shift aggregate demand.
There are two types of monetary policy :
Expansionary monetary policy : these are polices taken in order to increase money supply. When money supply increases, aggregate demand increases. reducing interest rate and open market purchase are ways of carrying out expansionary monetary policy
Contractionary monetary policy : these are policies taken to reduce money supply. When money supply decreases, aggregate demand falls. Increasing interest rate and open market sales are ways of carrying out contractionary monetary policy
Services are __________ products. By contrast, goods are __________ products.
a. rare; common
b. intangible; tangible
c. expensive; inexpensive
d. only business; only consumer
Answer:
B
Explanation:
Service is an action being done which is why it's not tangible while goods are the produced items which are tangible
what is cover letter is?
Answer:
A cover is a job application or document in this case that is submitted with The client's/Your credentials and why your interested in the job opening.
Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows:
Direct materials $61,500
Direct labor 40,000
Overhead 25,500
At the split-off point, a batch yields 1,400 barlon, 2,900 selene, 2,800 plicene, and 3,700 corsol. All products are sold at the split-off point: barlon sells for $17 per unit, selene sells for $24 per unit, plicene sells for $27 per unit, and corsol sells for $36 per unit.
Required:
Allocate the joint costs using the sales-value-at-split-off method. If required, round allocation rates to four decimal places and round the final allocations to the nearest dollar.
Answer:
Alomar Company
Allocation of Joint Costs:
Barlon = $10,002
Selene = $29,250
Plicene = $31,771
Corsol = $55,977
Explanation:
a) Data and Calculations:
Joint costs:
Direct materials $61,500
Direct labor 40,000
Overhead 25,500
Total joint costs $127,000
Joint Products Barlon Selene Plicene Corsol Total
Batch output units 1,400 2,900 2,800 3,700 10,800
Selling price per unit $17 $24 $27 $36
Sales value $23,800 $69,600 $75,600 $133,200 $302,200
Allocation of Joint Costs:
Barlon = $10,002 ($23,800/$302,200 * $127,000)
Selene = $29,250 ($69,600/$302,200 * $127,000)
Plicene = $31,771 ($75,600/$302,200 * $127,000)
Corsol = $55,977 ($133,200/$302,200 * $127,000)
Suppose you would like to make a global change to the font type and font color for all slides with the comparison layout. Which of the following would be the most efficient way to make this change?
Use Format Painter.
Use Animation Painter.
Use font commands on the Home tab.
Use slide master.
Answer:
D. Use slide master.
Explanation:
Edge
Splish Company purchased a computer for $9,920 on January 1, 2019. Straight-line depreciation is used, based on a 5-year life and a $1,240 salvage value. On January 1, 2021, the estimates are revised. Splish now feels the computer will be used until December 31, 2022, when it can be sold for $620. Compute the 2021 depreciation. (Round answer to 0 decimal places, e.g. 45,892.) Depreciation expense, 2021 g
Answer:
$2914
Explanation:
The following steps would be taken to determine the answer
1. Calculate depreciation expense given the initial information
2. calculate the accumulated depreciation by the second year. Accumulated depreciation is sum of depreciation expense
3. subtract the accumulated depreciation from the cost price of the asset. This would give the book value
4. calculate the depreciation expense using the new information and the book value
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($9,920 - $1240) / 5 = $1736
Accumulated depreciation = 1736 x 2 = $3472
Book value at the beginning of 2021 = 9920 - 3472 = $6448
Depreciation expense in 2021 = (6448 - 620) / 2 = $2914
You are considering purchasing a dump truck. The truck will cost $45,000 and have an operating and maintenance cost that starts at $15,000 the first year and increases by $2,000 per year thereafter. Assume that the salvage value at the end of 5 years is $9,000 and interest rate is 12%. The equivalent annual cost of owning and operating the truck is most nearly:
Answer:
The equivalent annual cost of owning and operating the truck is most nearly:
= $29,616.
Explanation:
a) Data and Calculations:
Costs PV Factor Present Value
Year 0 Truck purchase $45,000 1 $45,000
Year 1 Operating &
maintenance cost 15,000 0.893 13,395
Year 2 O&M cost 17,000 0.797 13,549
Year 3 O&M cost 19,000 0.712 13,528
Year 4 O&M cost 21,000 0.636 13,356
Year 5 O&M costs 23,000 0.567 13,041
Year 5 Salvage value -9,000 0.567 -5,103
Total costs $106,766
Annuity factor at 12% after 5 years = 3.605
Equivalent annual cost = $29,616 ($106,766/3.605)
Marigold Corp. bought a machine on January 1, 2011 for $806000. The machine had an expected life of 20 years and was expected to have a salvage value of $76000. On July 1, 2021, the company reviewed the potential of the machine and determined that its future net cash flows totaled $395000 and its fair value was $288000. If the company does not plan to dispose of it, what should Marigold record as an impairment loss on July 1, 2021
Answer: Marigold should record $134,750 as an impairment loss on July 1, 2021
Explanation:
Given that
Cost of the machine= 806,000
Expected life= 20 years
Time between January 1, 2011 and July 1 2021 = 10 1/2years
salvage value $76000.
Fair value= $288, 000
We know that the
Carrying amount /Book Value of machine = Cost of the machine- (Cost of the machine-salvage value)/expected life x time (ie from 2011 and 2021)
Carrying amount of machine =806,000 - [(806,000-76,000)/20 x 10.5 years]
=806,000 -383,250=$422,750
Asset is impaired when the Book value is more than net realizable value,
Here, The Book Value of $422,750 is greater than net realizable value,$395000.
Therefore loss on Impairment= Carrying amount - Fair value
$422,750-$288000
=$134,750
Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020 are presented below. End of Year Beginning of Year Cash and cash equivalents $ 1,285 $ 122 Accounts receivable (net) 3,500 3,300 Inventory 1,500 1,500 Other current assets 555 515 Total current assets $6,840 $5,437 Total current liabilities $3,420 $2,722 For the year, net credit sales were $13,940 million, cost of goods sold was $9,000 million, and net cash provided by operating activities was $1,254 million. Compute the current ratio, accounts receivable turnover, average collection period, inventory turnover, and days in inventory at the end of the current year. (Round answers to 1 decimal place, e.g. 1.6.)
Answer:
a. Current ratio = Total current assets/Total current liabilities
Current ratio = $6,840/$3,420
Current ratio = 2 : 1
b. Accounts receivable turnover = Net credit sales / [Net beginning accounts receivables + Net ending accounts receivables / 2]
Accounts receivable turnover = $13,940 / [$3,300+$3,500/2]
Accounts receivable turnover = $13,940 / $3,400
Accounts receivable turnover = 4.1 times
c. Average collection period = 365 / Accounts receivables turnover
Average collection period = 365 / 4.1
Average collection period = 89.0244
Average collection period = 89 days
d. Inventory turnover = Cost of goods sold / [Beginning inventory+Ending inventory/2]
Inventory turnover = $9,000 / [$1,500+$1,500/2]
Inventory turnover = $9,000 / $1,500
Inventory turnover = 6 times
e. Days in inventory at the end of the current year = 365 / Inventory turnover
Days in inventory at the end of the current year = 365 / 6
Days in inventory at the end of the current year = 60.8333
Days in inventory at the end of the current year = 61 days
Fleming Company provided the following information on selected transactions during 2021: Dividends paid to preferred stockholders $ 500,000 Loans made to affiliated corporations 1,400,000 Proceeds from issuing bonds 1,600,000 Proceeds from issuing preferred stock 2,100,000 Proceeds from sale of equipment 800,000 Purchases of inventories 2,400,000 Purchase of land by issuing bonds 600,000 Purchases of treasury stock 1,200,000 The net cash provided (used) by financing activities during 2021 is
Answer:
$2,000,000
Explanation:
Calculation to determine what The net cash provided (used) by financing activities during 2021 is
Using this formula
Net cash provided (used) by financing activities=(Dividends paid to preferred stockholders)+Proceeds from issuing bonds+Proceeds from issuing preferred stock+(Purchases of treasury stock )
Let plug in the formula
Net cash provided (used) by financing activities=($ 500,000) +$1,600,000 + $2,100,000 + ($1,200,000)
Net cash provided (used) by financing activities=$2,000,000
Therefore The net cash provided (used) by financing activities during 2021 is $2,000,000
During January, the solar cell factory begins 57,000 solar cells, and completes 53,000 of them. The remaining 4,000 solar cells are 25% through the production process. 61,000 solar cells are sold during the month.Actual production costs (i.e., costs put into production during the month) are $12.9 million: $3.1 million direct material and $9.8 million fixed overhead.1. After all needed adjustments have been made, and under absorption costing, what is the total cost included in (20 points)a. finished goods inventory as of January 31
Answer:
"2000 units" is the right solution.
Explanation:
The given values are:
Transferred from WIP,
= 53,000 units
Units sold,
= 61,000 units
Beginning inventory,
= 10000 units
Now,
The total number of finished goods will be:
= [tex]( Beginning \Inventory + Transferred \ from \ WIP - Units \ Sold )[/tex]
On substituting the values, we get
= [tex]( 10000 + 53000 - 61000 )[/tex]
= [tex]2000 \ Units[/tex]
A quality analyst wants to construct a control chart for determining whether three machines, all producing the same product, are in control with regard to a particular quality variable. Accordingly, he sampled four units of output from each machine, with the following results.
Machine 1 Measirement 17 15 15 17
Machine 2 Measurement 16 25 18 25
Machine 3 Measurement 23 24 23 22
What are the Mean chart three-sigma upper and lower control limits?
a. 22 and 18
b. 23.16 and 16.84
c. 22.29 and 16.71
d. 23.5 and 16.5
e. 24 and 16
Answer:
b. 23.16 and 16.84
Explanation:
Mean (X-bar) = Sum of observations / No of observations
Range (R) = Highest observation - Lowest observation
Machine 1
Mean (X-bar) = (17 + 15 + 15 + 17) / 4
Mean (X-bar) = 16
Range (R) = (17 - 15)
Range (R) = 2
Machine 2
Mean (X-bar) = (16 + 25 + 18 + 25) / 4
Mean (X-bar) = 21
Range (R) = (25 - 16)
Range (R) = 9
Machine 3
Mean (X-bar) = (23 + 24 + 23 + 22) / 4
Mean (X-bar) = 23
Range (R) = (24 - 22)
Range (R) = 2
Mean of means (X-double bar) = Sum of X-bar / Number of samples = (16 + 21 + 23) / 3 = 20
Mean of ranges (R-bar) = Sum of R / Number of samples = (2 + 9 + 2) / 3 = 4.33
From table of constants for calculating the 3-sigma upper and lower control limits, For n = 4, A2 = 0.729
UCL = X-double bar + (A2 x R-bar)
UCL = 20 + (0.729 x 4.33)
UCL = 23.1566
UCL = 23.16
LCL = X-double bar - (A2 x R-bar)
LCL = 20 - (0.729 x 4.33)
LCL = 16.8434
LCL = 16.84
g The liquidity trap refers to the situation where Multiple Choice the Fed adds excess reserves to the banking system, but it has minimal positive effect on lending, investment, or aggregate demand. excessive consumer debt limits the growth in consumer spending necessary to bring the economy out of recession. the public debt is so large that federal borrowing drives up interest rates and discourages private sector spending. a financial crisis causes a run on banks and the elimination of billions in excess reserves.
Answer:
The Fed adds excess reserves to the banking system, but it has minimal positive effect on lending, investment, or aggregate demand
Explanation:
liquidity trap can be regarded as a case whereby monetary policy becomes ineffective as a result of very low interest rates, and activities of
consumers, whereby consumer will prefer saving their money instead of
investing it in some investment as well as higher-yielding bonds. It should be noted that the The liquidity trap refers to the situation where The Fed adds excess reserves to the banking system, but it has minimal positive effect on lending, investment, or aggregate demand
Pizza ltd. leased equipment from Tasty Company under a four-year lease requiring equal annual payments of sh.86, 038, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4-year useful life and no residual value. If Pizza ltd.’s incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Pizza ltd.) is 8%, what is the amount recorded for the leased asset at the lease inception?
Answer:
Sh. 300,001.60
Explanation:
Note: Missing word has been attached
Particulars Amount
Annual payments 86,038
x PV Annuity due 8%, 10 periods 3.48685
Amount recorded for the leased asset 300,001.60
Homestead Jeans Co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. Monthly fixed costs are $54,000, and variable costs are $29 per unit. The present selling price is $42 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 18,000 units of the product at $32 each. Dawkins Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Homestead Jeans Co.
Required:
a. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Dawkins order.
b. Briefly explain the reason why accepting this additional business will increase operating income.
c. What is the minimum price per unit that would produce a positive contribution margin?
Answer:
18000*2
Explanation:
Yahir wants to become an Actor. What are the most helpful examples of milestones for this goal? Check all that apply.
taking an acting class
running a race
taking a science class
learning how to cook
participating in a school play
auditioning for a part in a television show
The helpful examples of milestones for becoming an actor includes:
taking an acting classparticipating in a school play auditioning for a part in a television showWho is an actor?An actor means someone who profession is based on acting on the stage, films, television etc.
The helpful examples of milestones for becoming an actor includes taking an acting class, participating in a school play and auditioning for a part in a television show.
Therefore, the Option A, E and F is correct.
Read more about Actor skills
brainly.com/question/1543496
Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 1,700 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $8 per unit of average inventory. Every time an order is placed for more of item X, it costs $26. a. Whenever item X is ordered, what should the order size be
Answer:
EOQ = 105.11898 rounded off to 105 units per order
Explanation:
To calculate the optimum order size when each order is placed, we need to find the EOQ or Economic order quantity. It is the quantity that should be ordered each time to minimize the inventory related costs. The formula to calculate EOQ is attached. The EOQ is calculated as follows.
EOQ = √[(2 * 1700 * 26) / 8]
EOQ = 105.11898 rounded off to 105 units
Laurie owns land that serves as security for a $60,000 mortgage. Her basis in the land is $20,000 and the fair market value is $50,000. Laurie is not personally liable for the loan. The bank forecloses on the property. What is the tax consequence to Laurie?
A. Laurie recognize income in the amount of his discharge of indebtedness; $60,000.
B. Laurie has a gain on the transfer and must recognize income of $40,000.
C. Laurie has $40,000 of income; a gain of $30,000 on the transfer and discharge of indebtedness of $10,000.
D. Both (a) and (b).
E. None of the above.
Answer:
D. Both a and b.
Explanation:
Laurie has land of $60,000 as mortgage. Her basis in the land is $20,000 which means she can recognize the income of $40,000 as a gain on transfer. The fair market value of land is $50,000, the amount of discharge of indebtness is $60,000 which is the amount of mortgage.
Irene has made Sara an offer on the purchase of a capital asset. Irene will pay (1) $200,000 cash or (2) $50,000 cash and a 6% installment note for $150,000 guaranteed by City Bank of New York. If Sara sells for $200,000 cash, she will invest the after-tax proceeds in certificates of deposit yielding 6% interest. Sara’s cost of the asset is $25,000. Why would Sara prefer the installment sale?
Answer:
Irene would prefer the instalment sale because she can defer the payment of tax until a future date. On the other hand, if she accept the cash sale, she would have to pay the tax immediately. The amount invested in certificate of deposit would be after tax.
Thus the value of an instalment payment would be greater than the value of a cash payment
Explanation:
Bakan Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product. Production volume 8,600 units 9,600 units Direct materials $ 98.70 per unit $ 98.70 per unit Direct labor $ 25.60 per unit $ 25.60 per unit Manufacturing overhead $ 73.20 per unit $ 69.20 per unit The best estimate of the total variable manufacturing cost per unit is:_______
Answer:
$159.1
Explanation:
The computation of the total variable manufacturing cost per unit is shown below;
At 8,600 units,
The total cos is
= (Direct material per unit + Direct labor per unit + Manufacturing cost per unit) × Number of units
= ($98.70 per unit + $25.60 per unit + $73.20 per unit) × 8,600 units
= $197.5 per unit × 8,600 units
= $1,698,500
At 9,600 units
The Total cost
= ($98.70 per unit + $25.60 per unit + $69.20) × 9,600 units
= $193.5 per unit × 9,600 units
= $1,857,600
So, the best estimated would be;
= ($1857,600 - $1,698,500) ÷ (9,600 units - 8,600 units)
= $159,100 ÷ 1,000 units
= $159.1
Fabrick Company's quality cost report is to be based on the following data: Lost sales due to poor quality $ 78,000 Quality data gathering, analysis, and reporting $ 23,000 Net cost of spoilage $ 88,000 Re-entering data because of keying errors $ 98,000 Test and inspection of in-process goods $ 24,000 Final product testing and inspection $ 78,000 Statistical process control activities $ 49,000 Returns arising from quality problems $ 16,000 Downtime caused by quality problems $ 26,000 What would be the total appraisal cost appearing on the quality cost report
Answer:
$102,000
Explanation:
Calculation to determine What would be the total appraisal cost appearing on the quality cost report
Using this formula
Total appraisal cost=Test and inspection of in-process goods + Final product testing and inspection
Let plug in the formula
Total appraisal cost=$ 24,000+$78,000
Total appraisal cost=$102,000
Therefore What would be the total appraisal cost appearing on the quality cost report is $102,000
The likelihood that a decision maker will ever receive a payoff precisely equal to the EMV when making any one decision is: a. Low (near 0%) b. High (near 100%) c. Dependent on the number of alternatives d. Dependent upon the number of states of nature 3 points
Answer: low (near 0%)
Explanation:
The expected monetary value(EMV) simply refers to the amount of money that an economic agent can expect to make based on a particular decision that's made.
It should be noted that the likelihood that a decision maker will be able to receive a payoff that is exactly as thesame as the EMV when a decision is being made will be near to zero as it's very low that it'll happen.
Dockwiller Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as D53. Data concerning this product are given below: The above per unit data are based on annual production of 8,000 units of the component. Direct labor is a variable cost. The company has received a special, one-time-only order for 500 units of component D53. There would be no variable selling expense on this special order and the total fixed manufacturing overhead and fixed selling and administrative expenses of the company would not be affected by the order. Assuming that Dockwiller has excess capacity and can fill the order without cutting back on the production of any product, what is the minimum price per unit below which the company should not accept the special order
Answer: $30
Explanation:
The company has excess capacity which means that we do not have to worry about opportunity costs.
We also do no have to worry about fixed costs and selling expenses.
The only relevant cost is therefore the variable costs:
= Direct labor + Direct material + Variable manufacturing overhead
= 26 + 3 + 1
= $30
Below $30 would mean incurring a loss.
Jonathan has a debt of $3,000 that needs to be repaid with 3 annual equal principal repayments with interest on the outstanding balance. The debt has an annual effective interest rate of 8%. In order to match his payment obligations exactly, Jonathan decides to purchase the following zero coupon bonds. Time to Maturity Par Value 1 year $1,000 2 years $ 800 3 years $ 900 Calculate the number of units of the 3-year bond Jonathan should buy, assuming fractional purchase is possible
Answer:
Jonathan
The number of units of the 3-year bond that Jonathan should buy is:
3.88 or 3 and 22/25 bonds.
Explanation:
a) Data and Calculations:
Present value of debt = $3,000
Annual effective interest rate = 8%
Total future value of the debt with interest = $3,492.30
Equal annual repayment of the debt = $1,164.10 ($3,492.30/3)
Number of 3-year bond that Jonathan should buy = $3,492.30/$900 = 3.88 or 3 and 22/25 bonds
Time to Maturity Par Value
1 year $1,000
2 years $ 800
3 years $ 900
From an online calculator, the total amount to be paid with interest is $3,492.30:
N (# of periods) 3
I/Y (Interest per year) 8
PV (Present Value) 3000
FV (Future Value) 0
Results
PMT = $1,164.10
Sum of all periodic payments $3,492.30
Total Interest $492.30
Answer:
1.2
Explanation:
Given that we are making 3 Equal Principle Payments on a loan of $3000, the principle that we will repay each year will be [tex]\frac{3000}{3} = $1000[/tex].
First Year:
The interest that we will need to repay during the first year will be 3000*.08 which will be $240 dollars of interest, so we will be paying a total of 1000 + 240, or $1240 for the first year reducing the amount due to $2000.
Second Year:
The interest that we will need to repay during the second year will be 2000*.08 which will be $160 of interest, so we will be paying a total of 1000 + 160, or $1160 which will reduce the amount due $1000.
Third Year:
This is the year that we care for. We have a total interest amount of $80, so we will be paying a total of $1080 for the third year.
Given that the par value of the Zero Coupon bond for the third year is $900, we will need [tex]\frac{1080}{900} = 1.2[/tex] coupons for the final year, giving us our answer of 1.2 3-year bonds that Jonathan should buy.
Prokp Co.'s records for April disclosed the following data relating to direct labor: Actual labor cost (payroll) for April$35,000 Labor rate variance$5,000favorable Labor efficiency variance$3,900unfavorable Actual direct labor hours worked (AQ) 2,500 Prokp's total standard direct labor hours allowed (SQ) for units produced in April (to nearest whole number) were: Multiple Choice
Answer:
2,256 hours
Explanation:
The computation of the total standard direct labor hours allowed (SQ) for units produced is shown below;
As we know that
Labor rate variance = (Actual hours × Actual rate) - (Actual hours × Standard rate)
($5,000) = $35,000 - (2,500 × Standard rate)
2,500 × Standard rate = $40,000
Standard rate = $16
Now
Labor efficiency variance = (Actual hours × Standard rate) - (Standard hours × Standard rate)
$3,900 = (2,500 × $16) - (Standard hours × $16)
Standard hours × $16 = 36,100
Standard hours = 2,256.25
= 2,256 hours
Can You Learn To Lead, written by the New York Times, do you believe anyone can learn to read? Why or why not? Explain your answer by pointing out details from the article.
Answer:
GUESS WHAT TIME IT IS FOR YOU time for u to ask goo gle not us.. thx for the points tho
Explanation:
have a good day :)
g Projects with different lives: Your firm is deciding whether to purchase a high-quality printer for your office or one of lesser quality. The high-quality printer costs $45,000 and should last four years. The lesser quality printer costs $35,000 and should last three years. If the cost of capital for the firm is 14 percent, then what is the equivalent annual cost for the best choice for the firm
Answer:
The lesser quality machine should be purchased because it has a lower equivalent annual cost of $15,075.60
Explanation:
The equivalent annual cost is the present value of the printer machine divided by the present value annuity factor.
Annuity factor for n years = 1- (1+r)^(-n)/r
Annuity factor for four years = (1- 1.14^-4)/0.14 =2.9137
Annuity factor for three years =(1- 1.14^-3)/0.14= 2.3216
Printer Equivalent annual cost of printer
High quality 45,000/2.9137 15,444.22
Lesser quality 35,000/2.3216 15,075.60
The lesser quality machine should be purchased because it has a lower equivalent annual cost of $15,075.60
The demand for a resource rises as Question 16 options: its productivity rises and the relative prices of substitutable resources rise. its productivity rises and prices of substitutable resources fall. its productivity falls and the relative prices of substitutable resources fall. its productivity falls and prices of substitutable resources fall.
Answer:
its productivity rises and the relative prices of substitutable resources rise.
Explanation:
In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.
The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. Thus, there exist a negative relationship between the quantity of goods demanded and the price of a good i.e when the prices of goods and services in the market increases or rises: there would be a significant decline or fall in the demand for this goods and services.
This ultimately implies that, an increase in the price level of a product usually results in a decrease in the quality of real output demanded along the aggregate demand curve.
A substitute product can be defined as a product that a consumer sees as an alternative to another product and as such would offer similar benefits or satisfaction to the consumer.
For substitute products (resources), the cross-price elasticity of demand is always positive because the demand of a product increases when the price of its close substitute (alternative) increases.
Hence, the demand for a resource rises as its productivity rises and the relative prices of substitutable resources rise.