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1 year ago

When one country can produce a good more cheaply than another is considered as absolute advantage?

1 answer:

6 0

With the same limitations, absolute advantage enables one company to produce more of this kind of good or service than another.

<h3>What is an example of an absolute advantage?</h3>

Consider California and Mexico as two nations that produce tequila and wine, respectively. Off to the right, a list of the goods that each country can create is presented. As you can see, California has a clear edge in creating both items because it can produce more of everything.

<h3>How is absolute advantage determined?</h3>

Low-cost production enables the achievement of an absolute advantage. In other senses, it describes a person, business, or nation that has cheaper production costs. When (in comparison to rivals): Fewer materials are required to make a product, such an advantage is developed.

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Units-of-activity Depreciation A truck acquired at a cost of $180,000 has an estimated residual value of $9,500, has an estimate

tatiyna

Answer:

The depreciable cost is $170500

The depreciation rate is $3.1 per mile

The depreciation expense for the year is $13640

Explanation:

The depreciable cost is the cost of the asset that qualifies to be charged as depreciation expense over the estimated useful life of the asset. The depreciable cost is calculated as follows,

Depreciable cost = Cost - Residual Value

depreciable cost = 180000 - 9500 = $170500

The depreciation rate under unit of activity method is the amount of depreciation that will be charged per unit of the asset usage.

The depreciation rate = Depreciable cost / estimated useful life in units of activity

The depreciation rate = 170500 / 55000 = $3.1 per mile

The units of activity depreciation for the year can be calculated by multiplying the depreciation rate per unit by the activity for the year in unit terms.

Depreciation expense for the year = 3.1 * 4400 = $13640

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3 years ago

In accounting, emphasis is placed on determining net income in accordance with generally accepted accounting principles. In fina

aksik [14]

Answer: false

Explanation: The first statement in the given case is correct as accounting is based on determining net income. Whereas, the subject matter of finance is related to increase the value of the company and the value of its shareholders wealth.

Finance does not only focus on net income but it also focuses on other aspects like liquidity, future potential etc.

Hence the given statement is false.

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3 years ago

Prof. Business will have $1,600,000 saved up by retirement at age 65. The retired professor expects to live 20 more years after

alexdok [17]

Answer:

heyy i hope ur having a great day so far hope my answer helps :)

Explanation:

<h2><em>$136348.618</em></h2><h2><em></em></h2><h3><em>Present value (PV) =$1,600,000 </em></h3><h3><em> </em></h3><h3><em>Number of year(n) = 20 </em></h3><h3><em> </em></h3><h3><em>Rate(r) = 6.5% = 6.5 / 100 = 0.065 </em></h3><h3><em> </em></h3><h3><em>Payment monthly (PMT) = ? </em></h3><h3><em> </em></h3><h3><em>Calculation:</em></h3><h3><em> in the picture </em></h3><h2><em> </em></h2><h2><em> </em></h2><h2><em>So, Payment per month = $136348.618</em></h2>

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3 years ago

Alo Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black an

Nataly [62]

1. The break-even points in sales units are computed as follows:

Break-even point (in units) = Direct fixed cost/contribution margin per unit

Regular model = 20,000 units ($1,200,000/$60)

Deluxe model = 3,529 units ($960,000/$272)

2. The Alo Company's Sales revenue to break-even, company-wide, is computed as follows:

<u>Sales Revenue at break-even point:</u>

= Fixed costs/Contribution margin ratio

= $3,660,800/40%

= $9,152,000

Data and Calculations:

Regular Model Deluxe Model Total

Expected sales quantity 90,000 18,000 108,000

Sales $13,500,000 $12,240,000 $25,740,000

Less: Variable costs 8,100,000 7,344,000 15,444,000

Contribution margin $5,400,000 $4,896,000 $10,296,000

Less: Direct fixed costs 1,200,000 960,000 2,160,000

Segment margin $4,200,000 $3,936,000 $8,136,000

Less:Common fixed costs 1,500,800

Operating income $6,635,200

Selling price per unit $150 $680 ($12,240,000/18,000)

Variable costs per unit $90 $408 ($7,344,000/18,000)

Contribution margin $60 $272 ($680 - $408)

Contribution margin ratio for the company = 40% ($10,296,000/$25,740,000 x 100)

Company total fixed costs = $3,660,800 ($2,160,000 + $1,500,800)

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3 years ago

A piece of labor-saving equipment has just come onto the market that Mitsui Electronics, Ltd., could use to reduce costs in one

alexandr402 [8]

Answer:

Mitsui Electronics, Ltd.

1a. Payback period = 5.6 years

1b. No. The equipment would not be purchased if the company requires a payback period of four years or less.

2a. Simple rate of return = 17.86%

2b. Yes. The equipment would be purchased if the company's required rate of return is 13%.

Explanation:

a) Data and Calculations:

Purchase cost of the equipment = $ 448,000

Annual cost savings that will be provided by the equipment = $ 80,000

Life of the equipment = 10 years

1a. Payback period = 5.6 years ($448,000/$80,000)

1b. No. The equipment would not be purchased if the company requires a payback period of four years or less.

Annual return = $80,000

Initial cost of the equipment = $448,000

2a. Simple rate of return = 17.86% ($80,000/$448,000 * 100)

2b. Yes. The equipment would be purchased if the company's required rate of return is 13%.

6 0

3 years ago