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3 years ago

When nations specialize according to their comparative advantage

Business

1 answer:

yaroslaw [1]3 years ago

5 0

Answer:

The correct answer is C. Total production and consumption in the world increase.

Explanation:

Comparative advantage has to do with the goods or services that a nation tends to decrease in the price or be more economical than the other nations. This comparative advantage helps the companies to develop goods and services with the best quality but more accessible than the other countries.

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Nissley Wedding Fantasy Corporation makes very elaborate wedding cakes to order. The owner of the company has provided the follo

Lena [83]

Answer:

$230.02

Explanation:

Calculation for what amount would the company have to charge for the Tijerina wedding cake to just break even

Size related $69.16

($1.33 per guest × 52 guests)

Complexity-related $56.84

($28.42 per tier × 2 tiers)

Order-related $74.72

($74.92 per order × 1 order)

Cost of purchased decorations for cake $29.30

Total cost $230.02

($69.16+$56.84+$74.72+$29.30)

The amount that the company would have to charge for the Tijerina wedding cake to just break even will be $230.02

3 0

3 years ago

An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $9,000,

Hunter-Best [27]

Answer:

$2,288,448

Explanation:

In order to calculate after-tax salvage value we first compute depreciation as per MACRS 5 year class.

MACRS 5 years states that following depreciation is chargeable in corresponding years,

Year 1 = 20%

Year 2 = 32%

Year 3 = 19.2%

Year 4 = 11.52%

We now calculate total depreciation on asset over the useful life of 4 years.

DEP Y1 = 9,000,000 * 0.20 = $1,800,000

DEP Y2 = 9,000,000 * 0.32 = $2,880,000

DEP Y3 = 9,000,000 * 0.192 = $1,728,000

DEP Y4 = 9,000,000 * 0.1152 = $1,036,800

We can now calculate Net book value at the end of 4th year

NBV = 9,000,000 - 1,800,000 - 2,880,000 - 1,728,000 - 1,036,800

NBV = $1,555,200

Taxable value = Sale price - NBV

Taxable value = 2,520,000 - 1,555,200 = $964,800

Tax = $964,800 * 0.24 = $231,552

After tax salvage value = 2,520,000 - 231,552 = $2,288,448

Hope that helps.

4 0

3 years ago

Exercise 11-1 Compute the Return on Investment (ROI) [LO11-1] Alyeska Services Company, a division of a major oil company, provi

vaieri [72.5K]

Answer:

1. Margin = 0.32 or 32%

2. Turnover = $19,000,000 or Operating Asset Turnover = 0.52 or 52%

3. Return on Investment = 0.17 or 17%

Explanation:

Firstly, list out the parameters we were given:

Sales = $19,000,000, Net Operating Income = $6,100,000,

Average Operating Assets = $36,500,000

1. Operating Margin = Net Operating Income / Sales

Operating Margin = 6,100,000 ÷ 19,000,000 = 0.32

Operating Margin = 0.32 (to 2 decimal places)

Operating Margin = 32%

2. Turnover refers to sales or revenue made during a particular period. In which case turnover is $19,000,000

However, if the turnover referred to is the Operating Asset Turnover, that is calculated below:

Operating Asset Turnover = Sales / Average Operating Assets

Operating Asset Turnover = 19,000,000 ÷ 36,500,000

Operating Asset Turnover = 0.52 (to 2 decimal places)

Operating Asset Turnover = 52%

3. Return on Investment (ROI) = Net Operating Income / Average Operating Assets

Return on Investment (ROI) = 6,100,000 ÷ 36,500,000

Return on Investment (ROI) = 0.17 (to 2 decimal places)

Return on Investment (ROI) = 17%

8 0

3 years ago

On January 1, 2021, Lizzy's Lemonade issues 6%, 10-year bonds with a face amount of $98,000 for $91,035, priced to yield 7%. Int

Anna007 [38]

Answer: $3186

Explanation:

The interest expense that will be recorded on June 30, 2021, the first interest payment date will be calculated as:

= Issue price × Yield price × 1/2

= $91035 × 7% × 1/2

= $91035 × 7/100 × 1/2

= $91035 × 0.07 × 0.5

= $3186

3 0

3 years ago

Assume that the risk-free rate remains constant, but the market risk premium declines. Which of the following is most likely to

slava [35]

Answer: The required return on a stock with a positive beta < 1.0 will decline.

This is the correct answer because when the market risk premium declines

the required return on stocks with any positive beta will decline. The reason for this is that Beta is the sensitivity of the stock to the market premium so if the market premium declines, if the beta is positive the return will decline

Example Capm RR= RF+B(RP)

If the RF= 5%

RP=5%

Beta of stock is 0.5

The required return on the stock will be 0.05+0.5(0.05)=0.075=7.5%

If the RP declines and goes to 2%

Then Required return will be equal to 0.05+0.5(0.02)=0.07=7%

Explanation:

6 0

3 years ago