Answer:
Concord Corporation
(a) Net sales $971,000
(b) Gross profit $313,633
(c) Income from operations $98,033
(d) Gross profit rate = 313,633/971,000 * 100
= 32.3
Explanation:
a) Data and Calculations:
Sales revenue $1,000,000
Sales returns and allowances $29,000
Net Sales $971,000
Cost of goods sold $657,367
Gross profit 313,633
Operating expenses $215,600
Income from operations $98,033
Ian loaned his friend $30,000 to start a new business. He considers this loan to be an investment, and therefore requires his friend to pay him an interest rate of 8% on the loan. He also expects his friend to pay back the loan over the next four years by making annual payments at the end of each year. Ian texted and asked that you help him calculate the annual payments that he should expect to receive so that he can recover his initial investment and earn the agreed-upon 8% on his investment. Calculate the annual payment and complete the following capital recovery schedule:
Answer:
Payment = Pmt(8%, 4, -30000) = $9,057.62
Interest Paid = Beginning amount * 8%
Principal paid = Payment - Interest Paid
End Balance = Beg Amount - Payment
Payment Beg Amount Payment Interest paid Principal paid End Balance
1 30,000 $9,057.62 2,400 6,657.64 23,342.38
2 23,342.38 $9,057.62 1,867.39 7,190.23 16,152.14
3 16,152.14 $9,057.62 1,292.12 7,765.45 8,386.69
4 8,366.39 $9,057.62 670.94 8,386.69 -
Journalize the following selected transactions for January. Journal entry explanations may be omitted.
Jan. 1 Received cash from the investment made by the owner, $14,000.
2 Received cash for providing accounting services, $9,500.
3 Billed customers on account for providing services, $4,200.
4 Paid advertising expense, $700.
5 Received cash from customers on account, $2,500.
6 Owner withdrew $1,010.
7 Received telephone bill, $900.
8 Paid telephone bill, $900.
Answer:
Jan. 1 Received cash from the investment made by the owner, $14,000.
Dr Cash 14,000
Cr Capital, owner 14,000
Jan. 2 Received cash for providing accounting services, $9,500.
Dr Cash 9,500
Cr Service revenue 9,500
Jan. 3 Billed customers on account for providing services, $4,200.
Dr Accounts receivable 4,200
Cr Service revenue 4,200
Jan. 4 Paid advertising expense, $700.
Dr Advertising expense 700
Cr Cash 700
Jan. 5 Received cash from customers on account, $2,500.
Dr Cash 2,500
Cr Accounts receivable 2,500
Jan. 6 Owner withdrew $1,010.
Dr Withdrawals 1,010
Cr cash 1,010
Jan. 7 Received telephone bill, $900.
Dr Utilities expense 900
Cr Accounts payable 900
Jan. 8 Paid telephone bill, $900.
Dr Accounts payable 900
Cr Cash 900
What type of business organization generates the most total sales
Answer:
probably the medical field
After discontinuing the ordinary business operations and closing the accounts on May 7, the ledger of the partnership of Anna, Brian, and Cole indicated the following:
Cash 7,500
Noncash assets 105,000
Liabilities 27,500
Anna capital 45,000
Brian capital 15,000
Cole capital 25,000
112,500 112,500
The partners share net income and losses in the ratio of 3:2:1. Between May 7-30, the noncash assets were sold for 150,000, the liabilities were paid, and the remaining cash was distributed to the partners.
(A) Prepare a statement of partnership liquidation.
(B) Assume the facts as in (A) except that noncash assets were sold for 45,000 and any partner with a capital deficiency pays the amount of the deficiency to the partnership, prepare a statement of partner liquidation
Answer:
The Partnership of Anna, Brian, and Cole
A) Statement of Partnership Liquidation:
Available cash for distribution = $157,500
Payment of liabilities = 27,500
Cash available for distribution $130,000
Distribution to partners:
Anna 67,500
Brian 30,000
Cole 32,500
Total distributed $130,000
B) Statement of Partnership Liquidation:
Available cash for distribution = $52,500
Payment of liabilities = 27,500
Cash available for distribution $25,000
Capital accounts balances = 85,000
Deficiency = $60,000
Distribution of deficiency to partners:
Anna 3/6 30,000
Brian 20,000
Cole 10,000
Total distributed $60,000
Explanation:
a) Data and Calculations:
Cash 7,500
Noncash assets 105,000
Total assets 112,500
Liabilities 27,500
Anna capital 45,000
Brian capital 15,000
Cole capital 25,000
112,500
Profit sharing ratio = 3:2:1
Sales proceeds from noncash assets = $150,000
Total cash available = $157,500 ($150,000 + 7,500)
Total capital repaid $85,000
Balance to be redistributed: $45,000
Partners Excess Capital Total
Anna 3/6 22,500 45,000 $67,500
Brian 2/6 15,000 15,000 30,000
Cole 1/6 7,500 25,000 32,500
Opinion polling and market research are examples of stratified random sampling.
A
True
B
False
An Energy Star air conditioner unit costs $300 while a standard unit costs $200. The two units have the same cooling capacity. The Energy Star unit costs 5 cents per hour less to run. If you buy the Energy Star unit and run it for 12 hours per day for 6 months of the year, how long does it take to recover the $100 extra cost
Answer: 167 days
Explanation:
Energy star unit saves 5 cents per hour.
When run for 12 hours per day it saves:
= 5 * 12
= 60 cents
The extra cost of $100 in cents is:
= 100 * 100
= 10,000 cents
Days it will take for $100 to be recovered:
= 10,000 / 60
= 166.67 days
= 167 days
In 6 months you would have saved:
= 60 cents * 180 days
= 10,800 cents
= $108
It will take a period of 167 days to recover the $100 extra cost.
Energy star unit saves 5 cents per hour and when its run for 12 hours per day, it saves:
= 5 * 12
= 60 cents
The extra cost of $100 in cents is:
= 100 * 100
= 10,000 cents
The number of days it will take for $100 to be recovered:
Days = 10,000 / 60
Days = 166.67 days
Days = 167 days
In 6 months you would have saved::
Saved amount = 60 cents * 180 days
Saved amount = 10,800 cents
Saved amount = $108
In conclusion, It will requires a period of 167 days to recover the $100 extra cost.
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Stosch Company's balance sheet reported assets of $117,000, liabilities of $30,000 and common stock of $27,000 as of December 31, Year 1. If Retained Earnings on the balance sheet as of December 31, Year 2, amount to $78,000 and Stosch paid a $29,000 dividend during Year 2, then the amount of net income for Year 2 was which of the following?
a. $47,000
b. $60,000 $
c. 29,000
d. $18,000
Answer:
See below
Explanation:
With regards to the following, recall that;
Retained earning at end = Beginning retained earning + Net income - dividend earned
$78,000 = Net income - $29,000
Net income = $78,000 + $29,000
Net income = $107,000
Therefore, the net income for year 2 would be $107,000
The monetary unit assumption: Multiple Choice Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold. Means that we can express transactions and events in monetary, or money, units. Presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods. Means that a business is accounted for separately from other business entities, including its owner. Prescribes that a company record the expenses it incurred to generate the revenue reported.
Answer:
Means that we can express transactions and events in monetary, or money, units.
Explanation:
monetary unit assumption: Means that we can express transactions and events in monetary, or money, units.
Going concern assumption - accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
Time period assumption - Presumes that the life of a company can be divided into time periods, such as months and years, and that useful reports can be prepared for those periods.
Business entity assumption - Means that a business is accounted for separately from other business entities, including its owner
Matching principle - Prescribes that a company record the expenses it incurred to generate the revenue reported.
Fill in the blanks to complete the sentence.
A company expects to sell 500 units during the second quarter and 550 units in the third quarter. Currently, during the second quarter, they have 46 units on hand. If they desire safety stock of 10% of the next quarter's sales, __________units will need to be produced in the second quarter.
Answer:
509 Units
Explanation:
At second quarter,
safety stock = 10%
With 550 units, for target of the next quarter
Then, safety stock = [(550 ×( 10/100) ]
= 55 units.
Buy the remaining unit is 46, and the expected unit to be sold is 500
Then, units that will be neededto be produced in the second quarter. Is
= (55 + 500) -46
=509 units
Harold Manufacturing produces denim clothing. This year, it produced 5,000 denim jackets at a manufacturing cost of $45 each. These jackets were damaged in the warehouse during storage. Management investigated the matter and identified three alternatives for these jackets. Jackets can be sold as is to a secondhand clothing shop for $6 each.Jackets can be disassembled at a cost of $32,000 and sold to a recycler for $12 each.Jackets can be reworked and turned into good jackets. However, with the damage, management estimates it will be able to assemble the good parts of the 5,000 jackets into only 3,000 jackets. The remaining pieces of fabric will be discarded. The cost of reworking the jackets will be $102,000, but the jackets can then be sold for their regular price of $45 each.Required:1. Calculate the incremental income.
Answer:
ALTERNATIVE 1 $30,000
ALTERNATIVE 2 $28,000
ALTERNATIVE 3 $33,000
Explanation:
Calculation for the incremental income
ALTERNATIVE 1 Sell as it is
Incremental revenue $30,000
(5,000*$6)
Incremental costs $0
Incremental Income $30,000
ALTERNATIVE 2 Disassemble and sell to recycler
Incremental revenue $60,000
(5,000*$12)
Incremental costs $32,000
Incremental Income $28,000
ALTERNATIVE3 Rework and turn into good jackets
Incremental revenue $135,000
(3,000*$45)
Incremental costs $102,000
Incremental Income $33,000
Therefore based on the above calculation the company should choose ALTERNATIVE 3 of the amount of $33,000
Which of the following does not represent trade talks or a "round" of negotiations?
the Doha Round
the Paris Round
the Kennedy Round
the Tokyo Round
Answer:
The Paris Round
Explanation:
Just finished.
Answer:
The paris round
Explanation:
I DID THIS PROBLEM
Boxer Company owned 24,000 shares of King Company that were purchased in 2019 for $350,000. On May 1, 2021, Boxer declared a property dividend of 1 share of King for every 10 shares of Boxer stock. On that date, there were 46,000 shares of Boxer stock outstanding. The market price of the King stock was $20 per share on the date of declaration and $39 per share on the date of distribution. By how much is retained earnings reduced by the property dividend
Answer:
$92,000
Explanation:
Calculation for By how much is retained earnings reduced by the property dividend
Using this formula
Reduction in Retained earnings=(Boxer stock outstanding/Declared property dividend )×King stock market price)
Let plug in the formula
Reduction in Retained earnings=(46,000/10 shares ) x $20
Reduction in Retained earnings= $92,000
Therefore By how much is retained earnings reduced by the property dividend is $92,000
Contracts are typically private agreements in that they bind the two parties and no one else. Thus, parties not in privity of contract usually do not have rights to a contract. However, there are exceptions to the general rule. This activity outlines the importance of paying special attention to ramifications that result from assigning or delegating a contract, including the effects these actions have on assignees. Read the case and then answer the questions to create a strategy for how someone might determine the results of the scenario. Katerina owned property in Miami right on the beach that she leased to Scotty. Scotty used the property for business purposes, which was allowed under the lease. Three months into the lease, Scotty transferred his lease to a sports agent company for $5,000, which became the new tenant under the lease. Katerina became upset with Scotty's transferring of the lease because she thought that since she leased the property to Scotty, he should not be allowed to let anyone else lease the property. Furthermore, she had a strong aversion to sports agents after watching the movie Jerry Maguire, and she did not want any money-grubbing sports agents working on her property. Subsequently, Katerina wonders whether there is any way she can limit the ability of Scotty to transfer the lease. Walk through the different types of transferring of rights and duties. What type of transfer of rights or duties is described in this case
Answer:
The type of transfer of rights or duties described in this case is an assignment of contract rights.
Explanation:
Transfer of contract rights or duties may be either the assignment or the delegation of contractual rights and responsibilities to a third party. While assignment involves the transfer of rights or benefits from the assignor to the assignee, delegation involves the appointment of another party to perform one's duties under a contract.
Farm workers in Oaks Farmville face a 1/85 probability of death at work and each of them receives a yearly wage of $159,106. Farm workers in Valley Farm face a 1/127 of death at work. Assume that both kinds of job require the same level of skills, effort and that all workers have the same preferences and tastes. The values of an statistical life is computed to be $1,262,558. How much should the workers in the less risky job should get paid
Answer:
$154,182.02
Explanation:
Probability of Farm workers in ( O.F ) facing death at work = 1/85 = 0.012
Probability of Farm workers in ( V.F ) facing death at work = 1/127 = 0.008
Value of a statistical life = $1,262,558
Determine how much the workers in less risky job should get paid
The less risky job is working in Valley farm(V.F ) with a death probability of = 1/127 = 0.008
The more risky job is working in valley farm ( probability = 1/85 = 0.012 )
Yearly wage of risky job = $159106
payment for less risky job can be calculated using the relation below
statistical life = ( cost incurred to reduce risk) / ( percentage of risk to death reduced ) ---------------- ( 1 )
cost incurred to reduce risk = yearly wage to high risk workers - yearly wage to low risk workers
= 159106 - X
percentage of risk to death reduced = (probability of death to high risk workers) - ( probability of death to low risk worker )
= 1/85 - 1/127 = 0.0039
back to relation 1
1262558 = ( 159106 - X ) / ( 0.0039)
159106 - X = 1262558 ( 0.0039 )
hence X ( amount to be paid to workers in the less risky job )
X = 159106 - 4923.9762 = $154,182.02
Khaled is a preschool teacher working at a public school, but he is considering quitting his job to start a daycare facility of his own. Indicate which of the four types of interdependency is most relevant to each factor in Khaled's decision. Use the market for daycare facilities as Khaled's market of interest.
A. Khaled knows there are few daycare facilities in the area, but many families looking for daycare.
B. An increase in graduation rates for teachers saturates the market for preschool teachers. This decreases the wages of teachers.
C. If Khaled opens his own facility, he will be responsible for taxes, insurance, licensing, and facility upkeep, among other things. However, as a teacher Khaled will only need to keep up his teaching license. In addition, Khaled will not be able to take a long vacation in the summer if he runs a daycare center.
D. Khaled is up for a raise in the next 6 months at his teaching job.
It should be noted that since Khaled knows there are few daycare facilities in the area, but many families looking for daycare, this illustrates an example of dependencies between people or business in the same market.
Interdependencies.It should be noted that an increase in graduation rates for teachers saturates the market for preschool teachers. This decreases the wage of teachers is an example of dependencies between markets.
In a scenario where Khaled opens his own facility, he will be responsible for taxes, insurance, licensing, and facility upkeep, among other things. However, as a teacher Khaled will only need to keep up his teaching license but will not be able to take a long vacation in the summer if he runs a daycare center, this is dependencies between each of your individual choices.
Lastly, when Khaled is up for a raise in the next 6 months at his teaching job, this scenario is an example of dependencies through time.
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Qtr5g66677
Math problem
Answer:
The dot over a number signifies that it is a repeater which would go on for ever, as when we endeavor to describe 1/3 decimally as 0.33333 . . . . (etc)
With a series of numbers we place the dot over the first and last, as with 0.97979797979 . . . (etc)
The remarkable feature being that a proper fraction divided by 9s e.g. 46/99 is exactly equal to the numerator with the repeater sign followed by the decimal.
Sheridan Shoes Foot Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted with its attorney and determined that it is possible that they may lose the case. The attorneys estimated that there is a 45% chance of losing. If this is the case, their attorney estimated that the amount of any payment would be $794000. What is the required journal entry as a result of this litigation
Answer:
No Journal entry. Disclose contingent liability of $794000 in Notes to Financial Statements
Explanation:
A Provision is recognized when it is Probable ( Probabity > 50%) that there would be an outflow of economic resources and that a reliable estimate can be made - IAS 37
Since there is a 45% chance of losing, it is not probable to recognize a provision. Thus a Contingent liability is recognized instead
Contingent Liabilities are only disclosed if the amounts are significant and are not shown on the face of the financial statement (no journal entry)
Falisari Corporation has computed the following unit costs for the year just ended:
Direct material used $ 25
Direct labor 19
Variable manufacturing overhead 35
Fixed manufacturing overhead 40
Variable selling and administrative cost 17
Fixed selling and administrative cost 32
Which of the following choices correctly depicts the per-unit cost of inventory under variable costing and absorption costing?
Variable Costing Absorption Costing
A. $ 79 $ 119
B. $ 79 $ 151
C. $ 96 $ 119
D. $ 96 $ 151
E. None of the answers is correct.
Answer:
A. $ 79 $ 119
Explanation:
Calculation for the choices that correctly depicts the per-unit cost of inventory under variable costing and absorption costing
Calculation for Variable costing using this formula
Variable costing = Direct materials + Direct labor + Variable Manufacturing Overhead
Let plug in the formula
Variable costing = = $25 + $19 + $35
Variable costing = $79
Calculation for Absorption costing using this formula
Absorption costing = Direct materials + Direct labor + Variable Manufacturing Overhead + Fixed Manufacturing Overhead
Let plug in the formula
Absorption costing= $25 + $19 + $35 + $40
Absorption costing= $119
Therefore the choices that correctly depicts the per-unit cost of inventory under variable costing and absorption costing are :$ 79 $ 119
What is capital market
Answer:
Capital market is a market where buyers and sellers engage in trade of financial securities like bonds, stocks, etc. The buying/selling is undertaken by participants such as individuals and institutions. Capital market consists of primary markets and secondary markets. ...
Explanation:
What are the reasons for economic marginalisation?
Answer:
People can be marginalised due to multiple factors, like gender, geography, ethnicity, religion, displacement, conflict or disability. Poverty is both a consequence and a cause of being marginalised.
For example you can take adivasis
Adivasis are becoming increasingly marginalised because they are losing their lands and access to the forests. Due to these things they lose their main sources of livelihood and food.
Determine the variance and indicate if each variance is favorable (F) or unfavorable (U). Variances are absolute numbers so no ( ) or - for negative. Amounts are in whole dollars and can contain a $ and a comma or not. For example, $123,456 or 123456. Indicate F or U for each variance. Item Budget Actual Variance F or U Sales price $400 $390 Cost of goods sold $192,500 $180,000 Materials usage $90,000 $89,000 Sales revenue $360,000 $390,000 Selling & Admin Expense $24,500 $20,000
Answer:
Item Budget Actual Difference F/U
Sales price $400 $390 $10 U
COGS $192,500 $180,000 $12,500 F
Materials usage $90,000 $89,000 $1,000 F
Sales revenue $360,000 $390,000 $30,000 F
Sell&Admin Exp, $24,500 $20,000 $4,500 F
Pro-tech Software acquired all of the outstanding stock of Reliable software for $14 million. The book value of Reliable's net assets( assets minus liabilities) was $8.3 million. The fair values of Reliable's assets and liabilities equaled their book values with the exception of certain intangible assets whose fair values exceeded book values by $2.5 million. Calculate the amount paid for goodwill.
Answer:
$ 3,200,000
Explanation:
Calculation for the amount paid for goodwill.
Goodwill = $ 14,000,000 - ($8,300,000 + $ 2,500,000)
Goodwill = $ 14,000,000 -$10,800,000
Goodwill= $ 3,200,000
Therefore the amount paid for goodwill is $ 3,200,000
New technology: Group of answer choices seldom contributes to competitive advantage or operational efficiency. frequently enables competitive advantage from product/service differentiation at lower cost. seldom enables competitive advantage from product/service differentiation at lower cost. frequently enables competitive advantage from product/service differentiation, but typically at higher cost. frequently enables operational efficiencies, but seldom enables competitive advantage.
Answer:
frequently enables competitive advantage from product/service differentiation at lower cost.
Explanation:
According to economic theory, technology is one of the factors that contributes to economic growth.
It also increases the competitive advantage of a firm by increasing the amount of goods that can be produced and also increases the quality of the output.
Differentiation is achieved at a lower cost.
The balance in the prepaid rent account before adjustment at the end of the year is $32,000, which represents four months' rent paid on December 1. The adjusting entry required on December 31 is:________
a. debit Rent Expense, $8,000; credit Prepaid Rent, $8,000
b. debit Prepaid Rent, $24,000; credit Rent Expense, $8,000
c. debit Rent Expense, $24,000; credit Prepaid Rent, $8,000
d. debit Prepaid Rent, $8,000; credit Rent Expense, $8,000
Answer:
the answer is b bro
Explanation:
have a wonderful day bro
A company has two products: standard and deluxe. The company expects to produce 37,775 standard units and 63,640 deluxe units. It uses activity-based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of its three activity cost pools. Budgeted Activity of Cost Driver Activity Cost Pool Budgeted Cost Standard Deluxe Activity 1 $ 103,850 2,500 5,250 Activity 2 $ 106,000 4,500 5,500 Activity 3 $ 95,120 3,000 2,800 Required: 1. Compute overhead rates for each of the three activities. 2. What is the expected overhead cost per unit for the standard units
Answer:
Results are below.
Explanation:
First, we need to calculate the activity rates for each cost pool:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Activity 1= 103,850 / (2,500 + 5,250)= $13.4 per unit of activity
Activity 2= 106,000 / (4,500 + 5,500)= $10.6 per unit of activity
Activity 3= 95,120 / (3,000 + 2,800)= $16.4 per unit of activity
Now, we can allocate overhead to Standard:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Standard:
Activity 1= 13.4*2,500= $33,500
Activity 2= 10.6*4,500= $47,700
Activity 3= 16.4*3,000= $49,200
Total allocated costs= $130,400
Finally, the unitary cost:
Unitary cost= 130,400 / 37,775
Unitary cost= $3.45
a) Determine a minimum inventory production plan (i.e., one that allows arbitrary hiring and firing). b) Determine the production plan that meets demand but does not hire or fire workers during the six-month period. c) Let’s say subcontracting is allowed. Let’s say we implement the constant workforce with subcontracting plan, what would the cost of subcontracting need to be to beat the cheaper of the two options above? d) Using this subcontracting cost of $50, formulate a LP and solve to optimality for the constraints of this problem
Answer:
Hello your question is incomplete attached below is the complete question
answer:
A) 32 units ( number of units per month per worker )
B) number of workers required = 975 / 32 ≈ 31
c) mean of the two values = 138 + 41 ) / 2 = $89.50
Explanation:
A) Determine a minimum inventory production plan ( i.e. one that allows arbitrary hiring and firing )
The number of units per month per worker = 32 units
To have a minimum/least inventory; production plan = demand by hiring or firing
of employees
attached below is the table
B) determine the production plan that meets demand but does not hire or fire workers during the six-month period
To determine this production plan we have to find the per month production = (Total demand - beginning inventory ) / 6
= ( 6350 - 500 ) / 6 = 975 units produced
number of workers required = 975 / 32 ≈ 31
C) Calculate The cost of subcontracting needed to beat the cheaper of the two options above
regular cost = 8 * 5 = $40
we will keep 30 workers in order to determine how much subcontracting is needed and the maximum and minimum value of each unit is kept hence the overall cost < $253900.
if subcontracting cost = $138 then total cost = $253820
If subcontracting cost = $41 then total cost = $245090.
Therefore mean of the two values = 138 + 41 ) / 2 = $89.50
D) subcontracting cost of $50 formulating a LP and solve to optimality for the constraints of this problem
Z <= (Y+1)*7680 , X + 32Y >= 5850
You bought two acres of land for $200,000 ten years ago. Although it is zoned for commercial use, it currently holds eight small, singlefamily houses. A property management firm that wants to continue leasing the eight houses has offered you $400,000 for the property. A developer wants to build a 12-story apartment building on the site and has offered $600,000. What value should you assign to the property
Answer:
$500,000
Explanation:
in order to calculate the value you should determine the expected return or sales price of the land = price of land x probability of sale
In this case, you have two offers and apparently you haven't decided which to choose, so the expected return = ($400,000 x 50%) + ($600,000 x 50%) = $200,000 + $300,000 = $500,000
Suppose that Portugal and Germany both produce oil and cheese. Portugal's opportunity cost of producing a pound of cheese is 3 barrels of oil while Germany's opportunity cost of producing a pound of cheese is 11 barrels of oil.
By comparing the opportunity cost of producing cheese in the two countries, you can tell that has a comparative advantage in the production of cheese and has a comparative advantage in the production of oil.
Suppose that Portugal and Germany consider trading cheese and oil with each other. Portugal can gain from specialization and trade as long as it receives more than of oil for each pound of cheese it exports to Germany. Similarly, Germany can gain from trade as long as it receives more than of cheese for each barrel of oil it exports to Portugal.
Based on your answer to the last question, which of the following prices of trade (that is, price of cheese in terms of oil) would allow both Germany and Portugal to gain from trade?
a. 7 barrels of oil per pound of cheese
b. 18 barrels of oil per pound of cheese
c. 2 barrels of oil per pound of cheese
d. 5 barrels of oil per pound of cheese
Answer:
Portugal and Germany and Comparative Advantage
a. Portugal
b. Germany
c. 3 barrels of oil
d. 1/11 barrels of cheese
e. 4 (11/3) barrels of oil per pound of cheese.
Explanation:
a) Data and Calculations:
Portugal's opportunity cost of producing a pound of cheese = 3 barrels of oil
Germany's opportunity cost of producing a pound of cheese = 11 barrels of oil
3/11 = 0.27
b) Portugal enjoys comparative advantage in the production of cheese while Germany enjoys comparative advantage in the production of oil because Portugal can produce cheese at lower costs than Germany while Germany can produce oil more efficiently than Portugal. When these two countries specialize in the production of the product that they enjoy comparative advantage, more goods will be produced in total, and they can exchange their surpluses with each other.
What is Trumpism and what are its consequences for society?
Answer:
Trumpism is a term for the political ideology, style of governance, political movement and set of mechanisms for acquiring and keeping power that are associated ...Explanation:
Northwest Iron and Steel is considering getting involved in electronic commerce. A modest e-commerce package is available for $30,000. The company wants to recover the cost in 2 years. Find the equivalent amount of new revenue that must be realized every 6 months at an interest rate of 3% per quarter using a factor formula, and a single-cell spreadsheet function that includes an EFFECT function.
The equivalent amount of new revenue that must be realized every 6 months at an interest rate of 3% per week is:_________
Answer:
$8,693
Explanation:
Effective annual interets rate: AI = (1+i/m)^n - 1
i = 3*2=6%, m = 26
AI = [1+6%/26]^26 - 1
AI = 1.0617 - 1
AI = 0.0617
Let semi annual income be $X. So, present value of four semiannual income will be aggregated to get principal invetsed money of $30,000
30,000 = ∑[X/1.0617^n}
30,000 = 3.451 * X
X = 8693.132425383947
X = $8,693
Therefore, firm have to earn $8,693 after every 6 months at an interest rate of 3% per week to recover $30,000 initial investment in 2 years
The firm has to earn $8,693 after every 6 months at a rate of interest of 3% per week to recover $30,000 initial investment in 2 years.
What do you mean by present value?Present value(PV) is the present value of future cash flows or cash flows provided for a specified amount of return. Future cash flows are reduced by the discount rate, and when the discount rate is high, the present value of future cash flows decreases.
As per the given information:
[tex]\rm\,Effective \;annual \;interest \;rate: AI = (1+\frac{i}{m} )^{n} - 1\\\\i = 3\times2=6\%, \rm\,m = 26\\\\AI = [1+\dfrac{6\%}{26} ]^{26} - 1\\\\AI = 1.0617 - 1\\\\AI = 0.0617[/tex]
Let semi-annual income be $X.
So, the present value of four semiannual incomes will be aggregated to get principal invested money of $30,000
[tex]30,000 = \rm\,Summation[\frac{X}{1.0617} ^{n}]\\\\30,000 = 3.451 \times \rm\,X\\\\X = 8693.132425383947\\\\X = \$8,693[/tex]
Hence, the firm has to earn $8,693 after every 6 months at a rate of interest of 3% per week to recover $30,000 initial investment in 2 years.
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