Answer:
$27,000
Explanation:
Assuming the minimum cost per day is the same as the penalty for each day the project lasts longer than 27days which is $1,000
Mininum completion cost = 27 × $1,000 = $27,000
Answer:
Lower overhead leads to lower prices and higher profit margins. However, fixed costs of acquiring the land are just one of the components of total overhead.
Explanation:
Overhead costs are costs that are not directly associated with running a business, like accounting or legal costs or in this case costs of acquiring land. Since these indirect costs vary and are not the same in every period, they are supposed to be measured monthly. However, small overhead definitely places a business in better position than the competition, as it can charge fewer price for its products and could lead to increase of profit margin. Bought land is just one of the factors that is included in these indirect costs, however if total overhead is really lower, than the firm's claims can be perceived as true.
Answer:
$449,830
Explanation:
A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity.
Don draper will receive total 7 payments in 6 years time.
Formula for Present value of annuity is as follow
PV of annuity = P + P x [ ( 1- ( 1+ r )^-n ) / r ]
P = Payment = $80,000
r = rate of return = 8%
n = number of years = 6 years
PV of annuity = $80,000 + $80,000 x [ ( 1 - ( 1+ 8% )^-6 ) / 8% ]
PV of annuity = $80,000 + $369,830
PV of annuity = $449,830
Answer:
The correct answer is option c.
Explanation:
Game theory is a tool in economics. It helps to understand the situation in cases where rational players interact and act in a strategic manner. For instance in an oligopoly market where there are few firms, which are interdependent.
These firms or producers are rational players who have to decide output and price level in order to maximize their economic profits.
The theory of monopoly can be applied only in case of monopoly market. The cartel theory is applicable if firms have formed a cartel. Aggressive competition model is not always necessary.
So, the correct answer here will be option c.
Answer: $11,000
Explanation:
The solution to this problem is not tedious or complicated
Solution;
Amount is = $110,000
Percentage of down payment is given as = 10%
To get the amount of the down payments we find the 10% of $110,00
10% of $110,000 is = 10÷100
=0.1
We multiply it by the amount which is 0.1×110,000= $ 11,000
