The cost of producing a good and getting it to the customers is called the ____

Annette Anderson has a choice of receiving either $5,000 in two years or a discounted sum today. If her opportunity cost is 8% w

kolezko [41]

Answer:

the present value is $4,286.69

Explanation:

The computation of the sum received today is shown below:

As we know that

Present value = Future value ÷ (1+rate of interest)^number of years

= $5,000 ÷ (1 + 0.08)^2

= $5,000 ÷ 1.1664

= $4,286.69

hence, the present value is $4,286.69

We simply applied the above formula so that the correct value could come

And, the same is to be considered

8 0

3 years ago

Kelly Tumlin wants to open a dog grooming salon that will offer healthy, natural pet care and holistic pet products. All of the

expeople1 [14]

Answer:

Kelly Tumlin wants to open a dog grooming salon that will offer healthy, natural pet care and holistic pet products. All of the products sold at the salon will be of the highest quality and made of all-natural ingredients. Tumlin wants to pamper pets just like a spa pampers their owners. To determine the feasibility of the grooming salon, Tumlin hired a marketing researcher who studied all the market information available and determined that single, white-collar workers between the ages of 30 and 60 were the most likely people to use the services proposed by Tumlin. The researcher also determined the west side of the city offers the best location for the enterprise even though zoning regulations are much stricter in that area.

Refer to Dog Spa. The fact that people would actually treat their dogs to a luxurious spa treatment reflects a change in political factors within the external environment

The zoning is a political factor that led to the regulations

Explanation:

7 0

3 years ago

Sunland Company purchased a depreciable asset for $725000 on April 1, Year 15. The estimated salvage value is $68000, and the es

Natali5045456 [20]

Answer:

$405,458

Explanation:

Date of acquisition - 01/04/2015

Date of disposal - 01/05/2018

Time line - 3years 1 month

Useful life - 5years

Salvage value - $68000

Depreciation method - Straight line

Cost of Asset - $725,000

Annual Depreciation = (725000-68000)/5 =657,000/5 = 131500

Accumulated depreciation = (131500*3) + 131500/12

$394,500+10,958

6 0

3 years ago

Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither

Svetach [21]

Answer:

I sold a used laptop for $108, even though I was willing to go as low as $100 in order to sell it. = Producer Surplus

A local store was having a sale on watches, so I bought a watch for my brother. = Economic Surplus or "Neither"

Even though I was willing to pay up to $37 for a jersey sweater, I bought a jersey sweater for only $30. = Consumer Surplus

Explanation:

"Economic Surplus" refers to the sum of the gain that both consumer and producer have when it comes to selling or buying the product. Both the buyer and seller in the situation above have gains. The buyer was able to have a gain in buying the watch on sale, while the seller considered the profit as a gain rather than as a loss.

"Producer Surplus" refers to the difference between the lowest price that the seller is willing to sell its product and the market price of the good. The seller in the situation above is willing to sell as low as $100, but the market price for the laptop is actually higher.

"Consumer Surplus" refers to the difference between the highest price that a buyer is willing to buy a product and the market price of the good. The buyer is willing to pay $37 for the jersey sweater, but the jersey sweater costs a lot lower.

So, this explains the answers above.

4 0

3 years ago

The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May

NeTakaya

Answer:

1. Prepare a retained earnings statement.

Net income = $943,400

Retained earning at May 31, 2018 = $3,792,500

2. Prepare a balance sheet, assuming that the current portion of the note payable is $50,000.

Net Total Assets = Stockholder's equity = $4,292,500

Explanation:

1. Prepare a retained earnings statement.

To do this, the income statement is first prepared to obtain the net income as follows:

Clairemont Co.

Income Statement

for the fiscal year ended May 31, 2018

Details $

Sales 11,343,000

Cost of goods sold (7,850,000)

Gross Income 3,493,000

Selling and Distribution expenses:

Sales salaries expense (916,000)

Advertising expense (550,000)

Dep. expense - Store equipment (140,000)

Miscellaneous selling expense (38,000)

Administrative expenses:

Office salaries expense (650,000)

Rent expense (94,000)

Insurance expense (48,000)

Dep. exp - Office equipment (50,000)

Office supplies expense (28,100)

Miscellaneous admin expense (14,500)

Operating income 964,400

Interest expense (21,000)

Net income  943,400 

The retained earning statement can therefore, be stated as follows:

Clairemont Co.

Retained Earnings Statement

for the fiscal year ended May 31, 2018

Details $

Retained earnings at June 1, 2017 2,949,100

Net income for the year 943,400

Dividends (100,000)

Retained earning at May 31, 2018  3,792,500 

2. Prepare a balance sheet, assuming that the current portion of the note payable is $50,000.

Clairemont Co.

Balance sheet

for the fiscal year ended May 31, 2018

Details $ $ 

Fixed Assets

Office equipment 830,000

Accumulated dep.- office equip (550,000) 280,000

Store equipment 3,600,000

Accumulated dep.- store equip (1,820,000) 1,780,000

Net Fixed Assets 2,060,000

Current Assets

Cash 240,000

Accounts receivable 966,000

Inventory 1,690,000

Estimated returns inventory 22,500

Office supplies 13,500

Prepaid insurance 8,000

Total current assets 2,940,000

Current Liabilities

Accounts payable (326,000)

Customer refunds payable (40,000)

Salaries payable (41,500)

Note payable (50,000)

Working Capital 2,482,500

Long-term Liability

Note payable (300,000 - 50,000) (250,000)

Net Total Assets  4,292,500 

Financed by:

Common stock 500,000

Retained earning at May 31, 2018 3,792,500

Stockholder's Equity  4,292,500 

Note:

Since both the Net Total Assets and Stockholder's equity are to $4,292,500, it implies the financial statement is accurately prepared as both as always be equal.

5 0

4 years ago

The cost of producing a good and getting it to the customers is called the _____ . penalty cost