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3 years ago

Opportunity costs occur when decisions are made. economists recommend that those decisions be based on what?

1 answer:

6 0

Those decisions should be based on COSTS AND BENEFITS.
In making decision on which course to follow, the decision made will be based on the costs of the products involved and the benefits that each one of them has to offer. The product with the lowest cost and the highest benefits should be chosen.

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Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to proudcts. Mnaufacturing over

tatyana61 [14]

Answer:

2040.

Explanation:

To reach the total manufacturing cost we need to calculate machining and assembling overhead rate first, in order to calculate the rate we need to divide manufacturing overhead cost on number of hours

Machining OH rate = 280000 / 50000 = 5.60

Assembling OH rate = 360000/40000 = 9.00

manufacturing cost:

machine Assembly Total

Material 425 175 600

labor 275 300 575

Overhead 865

(50*5.60) 280

(65*9) 585

Total cost 2040

5 0

3 years ago

Bubba is a shrimp farmer. In an ironic twist, Bubba is allergic to shellfish, so he cannot eat shrimp. Each day he has a one-

attashe74 [19]

Answer and Explanation:

In the absence of sufficient information about the expenses and other factors, which related to money, we have to consider market price as the value of shrimp.

The value of Shrimp is $10,700 per ton because, In this scenario, we have only market rate to consider the value of shrimp.

Therefore $10,700 is the price of 1-ton shrimp.

6 0

3 years ago

Hayes Corporation has $522 million of common equity on its balance sheet and 9,000,000 shares of common stock outstanding. The c

mylen [45]

Answer:

sry need points

Explanation:

5 0

2 years ago

If a new home can be constructed for 120,000 what is the opportunity cost of federal defense spending assume a defense budget of

Alex_Xolod [135]

Answer:

58,333.33

Explanation:

Opportunity cost is the value of the next best alternative. It is the forgone benefits as a result of choosing one option over the others. Opportunity cost occurs due to the scarcity of resources that forces people to make choices. The value of the sacrificed option is the opportunity cost.

If the cost of constructing a new home is 120,000, the opportunity cost of one house equals the next best alternative of spending the 120,000. With a budget of 7 billion, the opportunity cost of spending 7 billion will be 7 billion divided by 120,000.

=7,000,000,000/120,000

=58,333.33

4 0

3 years ago

Your company has been bought out by another company. In the acquisition, you have been asked to leave the company and as severan

expeople1 [14]

Answer:

$614,457

Explanation:

The present value of the annual cash inflow of $100,000 for ten years can be found by the following formula:

Present Value = Annual Cash Inflow * Annuity Factor (Step 1)

Here

annuity Factor at 10% for 10 years time is

By putting values we have:

Present Value = $100,000 × 6.14457 = $614,457

Step 1 : Annuity Factor

Annuity Factor = (1 - (1 + r)^-n) / r

Here r is 10% and n is 10 years.

So by putting values, we have:

Annuity Factor = (1 - (1 + 10%)^-10) / 10% = 6.14457

8 0

3 years ago