Answer:
These lost wages would be considered as opportunity cost
Explanation:
The lost wages would be considered as opportunity cost .
Opportunity cost is the value of the next best alternative forgone in favor of a decision. The decision of the entrepreneur to start a business of his own would mean forgoing the wages from his paid employment.
Hence, the lost wages of $50,000 becomes an opportunity cost to the decision.
These lost wages would be considered as opportunity cost
What will be the selling price per unit if Garcia uses a markup of 15% of total cost?
Answer:
Selling price = $301.3
Explanation:
The selling price would be determined by adding the total unit cost to the mark- up.
Mark up is the proportion of cost that is to be earned as profit.
Selling price = Total unit cost + Profit
Profit = 25% × unit cost
Selling price = Unit cost + Mark-up
Selling price = Unit cost + (15%× unit cost)
Total unit cost =Variable cost + unit fixed cost
Total fixed cost = 645,000 + 111,000 = 756,000
Unit fixed cost = $756,000/10,500 =×72
Total unit cost = 105 + 35 + 50 + 72 = 262
Selling price = 262 + ( 15% + 262) = 301.3
Selling price = $301.3
The question asks to identify a problem in the liabilities section of a balance sheet, specifically in the payroll information, and suggest a solution. Possible issues could be inaccurate payroll calculations or inconsistencies between records. A possible solution could be auditing the payroll and implementing regular checks.
The question asks you to review the liabilities section of the balance sheet for a company named Rings and Things with a focus on the payroll information. It's important to note that without specific details from the balance sheet and payroll information, a precise issue can't be identified. However, typical problems in this area could include inaccurate payroll calculations or discrepancies between the balance sheet and payroll records.
A solution to these issues could involve auditing the payroll procedures to identify and rectify any errors or inconsistencies. Furthermore, regular checks and audits could be implemented to prevent these types of issues from occurring in the future. It’s fundamental that Janet and Omar ensure all records are meticulous and accurate to maintain a healthy balance sheet.
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Answer:
Explanation:
Most of the liability costs are coming from payroll, the individual salesperson. This employee only worked for 20 hours during April, and yet still makes an income of $1000 dollars. This means they have an hourly rate of $50 an hour, which is way more than the standard employee should be making. I would recommend Janet and Omar to decrease the hourly rate to something more standard, like minimum wage. This would decrease their liability costs by more than 50% because California's minimum wage rate is only about $12-13.
Answer:
The answer is e. the trader who commits to purchasing the commodity on the delivery date.
Explanation:
The long position in a forward position agrees to buy the stock when the contract expires. The long futures position is an unlimited profit, unlimited risk position that can be entered by the futures speculator to profit from a rise in the price of the underlying
Answer:
Midpoint formula = - 7.43
Other formula = - 4.88
Elastic PED - Decrease price to increase total revenue
Explanation:
Price elasticity of demand is the responsiveness of quantity demanded to a change in price. The midpoint formula calculation is as follows:
(Q2 - Q1) / [(Q2 + Q1/2]
(P2 - P1) / [(P2 + P1/2]
In this scenario:
Q1 = 433 (old quantity)
Q2 = 169 (new quantity)
P1 = 0.88 (old price)
P2 = 0.99 (new price)
When this is substituted into the formula, it is as follows (I shall do it one step at a time to make it easier):
(169 - 433) / [(169 + 433/2]
(0.99 - 0.88) / [(0.99 + 0.88/2]
(169 - 433) / 301
(0.99 - 0.88) / 0.935
- 264 / 301
0.11 / 0.935
- 0.877
0.118
PED =- 7.43(PED is always a negative figure because price and quantity demanded have an inverse relationship. i.e. when one falls, the other rises)
PED is elastic if it is more than 1 and elastic if it is less than 1.
In this case, 5.8 is more than 1, hence PED is elastic.
In such a case, a change in price will always lead to a higher change in quantity demanded. Therefore, it is important to decrease the price to increase total revenue.
However, a different answer can be obtained using a different PED calculation
% change in quantity demanded
% change in price
(Q2 - Q1) / Q1
(P2 - P1) / P1
(433 - 169) / 433
(0.99 - 0.88) / 0.88
0.61
0.125
PED = - 4.88
Answer:
the options are missing, but I wrote down the two possible answers
the journal entry to record the purchase assuming perpetual inventory method:
Dr Merchandise inventory 40,000
Cr Accounts payable 40,000
the journal entry to record the damaged merchandise assuming perpetual inventory method:
Dr Accounts payable 4,000
Cr Merchandise inventory 4,000
the journal entry to record the purchase assuming periodic inventory method:
Dr Purchases 40,000
Cr Accounts payable 40,000
the journal entry to record the damaged merchandise assuming periodic inventory method:
Dr Accounts payable 4,000
Cr Purchases returns 4,000
Answer:
inflation rate= 3.8%
Explanation:
Giving the following information:
Nominal return= 11.1 percent
Real return= 7.3 percent
The real return on investments is the difference between the nominal return and the inflation rate.
Real return= nominal return - inflation rate
inflation rate= nominal return - real return
inflation rate= 11.1 - 7.3
inflation rate= 3.8%
The inflation rate is determined by subtracting the real return on an investment from its nominal return. In this case, the inflation rate is 3.8 percent.
The inflation rate can be calculated by subtracting the real return from the nominal return. In this case, the nominal return is 11.1 percent and the real return is 7.3 percent.
To calculate the inflation rate, we use the formula: Inflation rate = Nominal return - Real return. So, the inflation rate would be: 11.1 - 7.3 = 3.8 percent.
This means that the value of money decreased by 3.8 percent over the course of the year due to inflation.
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