Answer:
a. economies of scale.
Explanation:
Local electricity companies generally have natural monopolies resulting from both economies of scale and/or control of natural resources. Economies of scale refers to the average total costs decreasing as the total output generated by the company increases. For example, it is extremely expensive to generate electricity for 1 single home, but the average total cost for generating electricity for 1 million homes is very low. Generally utilities are monopolies because it is very expensive to set and start operating the company, but once it is operating its average costs per consumer are very low.
Answer:
subrogation clause
Explanation:
The subrogation clause establishes an insurance company's rights to collect the money it paid for an event relating to an insurance contract from the individual or business that was responsible for the event which resulted in loss, injury or damage to the insured.
In this case, Joe's title company has the right to collect the funds from the seller since it already paid a compensation to Joe. The whole purpose of having insurance is that your financial position is not affected by an unexpected event, but it is not meant to provide a profit for the insured.
Answer:
Total cost = Total ordering cost + Total holding cost
Total cost = DCo + QH
Q 2
Where
D = Annual demand
Co = Ordering cost per order
Q = EOQ
H = Holding cost per item per annum
D = 40,000 units
Co = $48
H = 18% x $8.00 = $1.44
EOQ = √2DCo
H
EOQ = √2 x 40,000 x $48
$1.44
EOQ = 1,633 units
Explanation:
EOQ equals 2 multiplied by annual demand and ordering cost divided by holding cost per item per annum. The holding cost per item per annum is calculated as holding cost rate multiplied by unit cost.
Answer:
Dr interest expense $5,756.25
Cr cash $5,250
Cr Discount on bonds payable $506.25
Explanation:
Amortization of discount=$10,125/10 years*6/12=$506.25
The 6/12 implies that the amortization takes place every six months instead of annually.
The semiannual interest payment=$150,000*7%*6/12=$5,250
The interest payment would be credited to cash $5,250 and debited to interest expense for the year.
The amortization of discount would be credited discounts on bonds payable and credited to interest expense account as shown above in the answer section
Answer:
1. the arithmetic average quarterly return = 8.79%
2. the standard deviation of quarterly returns = 17.8788%
3. the Sharpe ratio of Samsung stock for the next quarter= 0.435593
Explanation:
From the given question;
We use the EXCEL SOFTWARE TO CALCULATE THE:
the arithmetic average quarterly return
the standard deviation of quarterly returns &
the Sharpe ratio of Samsung stock for the next quarter
In the two diagram attached below, the first show the data entry and the output and the second diagram show how we compute the cell reference to estimate the answers.
