Answer:
A. Lowest Total Cost:
A. 315,550 or more
B. Lowest total cost of annual volume of 120 boats
C. C
Explanation:
The lowest total cost among the three alternatives is b.
If the company goes for new location it will have to incur fixed cost of $270,000 and variable cost per boat will be $600.
If the company Subcontracts then Total cost per boat is $2,620
If a company goes for expanding existing facility then it will incur fixed cost of $57,000 and variable cost will be $1,030 per boat.
If company produces 315,000 or more boats then it will have lowest possible cost for the boat.
For an output of 120 bots the best possible alternative is option C. The fixed cost will be $475 per boat ($57,000 / 120 boats)
The total cost will be $1,505 ($475 + $1,030)
Command economies have public enterprises where the government controls everything including business and production. In socialism, the means of production, distribution, and exchange are owned or regulated by the community as a whole.
Answer:
C
Explanation:
The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.
As more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.
If the PPF is a straight line, it means there is a constant opportunity cost no matter the point one is on the curve
Answer:
''there will be at most as many POSITIVE rates...''
Explanation:
The measure of investments' rate of return which excludes external factors such as inflation is known as Internal Rate of Return(IRR)
It is used in;
(1). Savings and loans.
(2). Liabilities
(3). Fixed incomes
(4). Private equity and capital management.
(5). Maximizing total present value and so on.
It can be calculate using the formula below:
NPV= C(n)/(1+r)^n = 0
That is internal rate of return can be use in solving NPV = 0.
Therefore, 'With respect to engineering economics and the internal rate of return (IRR), Descartes’ rule of signs indicates there will be at most as many POSITIVE rates of return as there are sign changes in the cash flow profile.''
Answer:
Dr Bond investment $50,000
Cr cash $50,000
Dr cash $1,250
Cr interest revenue $1,250
Dr cash $50,000
cr bond investment $50,000
Explanation:
On July 1 2019,Red company would have parted with cash of $50,000 which means that cash account should be credited with $50,000 while bond investment account is debited with same amount
On receipt of first interest payment of $1,250 (5%*$50,000*1/2) cash is debited with $1,250 while interest revenue is credited with the same amount.
Upon receipt of face value at redemption,the journal entry would be opposite of the initial one
