We need to compare the total expenses between the two options.
Option 1: We will purchase motherboards
Expenses = $65 * 50,000
Expenses = $3,250,000
Option 2: We will manufacture our own boards
Expenses = ($32*50,000) + ($10*50,000) + ($16*50000) + $75000
Expenses = $2,975,000
We choose option 2 since it is lesser by $275,000.
Answer:
Net income $2,950
Explanation:
Stacey's piano rebuilding company
Income statement adjusted for the month of January
Operating revenue
Rebuilding fees revenue. $19,000
Total operating revenue. $19,000
Operating expenses
Wages expense. $16,500
Utility expenses. $400
Total operating expenses $16,900
Operating income. $2,100
Other item:
Rent revenue. $850
Net income. $2,950
Answer:
The answer is 8.55 percent
Explanation:
This is Capital Assets Pricing Model(CAPM) shows the relationship between undiversified risk(systemai risk) and the expected rate of return for shareholders. It is used to determine the cost of equity. This model is widely used in finance.
The formula is: Risk free rate of return + beta(market return - risk free rate of return ).
Note that risk free rate of return - market return is known as risk premium i.e the compensation for taking risk.
Risk free rate of return - 4 percent
market return - 11 percent
Beta - 0.65
4 + 0.65(11 - 4)
4 + 0.65(7)
4 + 4.55
=8.55 percent
Answer:
B) reports AGI of $90,000 with a $10,000 passive loss carryover.
Explanation:
regular business income $90,000
passive income:
- Activity A: $20,000 gain
- Activity B: $30,000 loss
Mark's adjusted gross income will include the income from his normal business activities = $90,000. But he should also report the passive activities which result in a net loss of $10,000 (= $20,000 - $30,000 = -$10,000). This loss from his passive activities must be reported as passive loss carryover.
The part of the business cycle given that shows a period of contraction is <u>Point B. </u>
<h3>Why does point B show contraction?</h3>
When the economy is in a period of contraction, the business cycle would show a fall from the peak to the trough.
The peak is point A and the trough is Point C. Point B shows the fall from A to C which means that Point B must be the contraction.
In conclusion, option B is correct.
Find out more on the business cycle at brainly.com/question/26086110.