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3 years ago

Select the items below that describe why scarcity exists.

2 answers:

5 0

Scarcity exist because of the unlimited wants of people. There will be no scarcity of something if there is no demand and wants for that thing.

Yanka [14]3 years ago

5 0

The top two answers are correct.

People's wants are unlimited and resources are limited.

You might be interested in

Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his division’s return o

baherus [9]

Answer:

NPV: $180,285.49

IRR: 21.336%

simple rate of return: 72.13%

Explanation:

6,100,000 investment

contribution margin 3,000,000

fixed expense: <u> 900,000 </u>

EBITA 2,100,000

We will calculate the NPV without the depreciation, as the depreciation is the distribution of the investment cost over the project life.

If we include the depreciation we will be counting the investment amount twice. Entirely at Time 0 and then subtracting on each cash inflow.

We will calculate the NPV at 20% as is the company's discount rate. Even if the current division returns are in 24% as the company accepts project which yields 20%.

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 2,100,000

time 5 years

rate 20% = 20/100 = 0.2

$2100000 \times \frac{1-(1+0.2)^{-5} }{0.2} = PV\\$

PV $6,280,285.49

NPV = PV of cash inflow - investment

6,280,285.49 - 6,100,000 = 180,285.49

The internal rate of return is the rate at which the NPV of a priject is zero.

We calculate this using excel formula IRR

or a financial calculator

it could also be done with trial and error using the PV tables.

<u>I will explain you in Excel</u>

FIrst, you write the inflow and outflow per year:

-6,100,000

2,100,000

then we write on another cell:

=IRR(

then, select the cells

and press enter

21.336%

<u>the simple rate of return:</u>

(total return - investment) / investment

(2,100,000 x 5 - 6,100,000) / 6,100,000 =

4,400,000 / 6,100,000 = 0.721311475 = 72.13%

7 0

3 years ago

Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: If $25,

GaryK [48]

Answer:

The missing part of the question is found below:

Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow:

Total Hiking Fashion

Sales revenue $480,000 $340,000 $140,000

Variable expenses 355,000 235,000 120,000

Contribution margin 125,000 105,000 20,000

Fixed expenses 76,000 38,000 38,000

Operating income (loss) $49,000 $67,000 $(18,000)

Answer

By discontinuing fashion line of business operating income would increase by $5,000

Explanation:

The impact of eliminating Fashion line is evident in the revised Income statement below:

Hiking

Sales revenue $340,000

Variable expenses ($235,000)

Contribution margin 105,000

Fixed expenses($76,000-$25,000) ($51,000)

Operating income $54,000

By discontinuing the fashion line of business,the operating income would increase by $5,000 ($54,000-$49,000) from $49,000 when operating the two lines of business to $54,000 when fashion is closed up.

The most appropriate action is to concentrate on the hiking line which might mean that Boots plus has a competitive edge in the Hiking business sector.

4 0

3 years ago

Explain how a country could have a deficit on its primary income but a current account surplus. 4 marks

Tatiana [17]

<h2>The following are the reasons for how a country could have a deficit on its primary income but a current account surplus:</h2>

The identified and associated sources of primary income would be different than the sources of financial activities that reflect their collection in the current account.
The expenses on developmental activities could be drawn from the primary account rather than drawing them directly from the current account.
There could be diversions of funds to manage the accounts in order to earn interest on them.

7 0

4 years ago

An upcoming convention has secured 300 rooms at $140 per room for Friday night. The rack rate for Friday night is $250 per room

m_a_m_a [10]

Answer:

$67,000

Explanation:

The total revenue will be income from the 300 rooms and that from 100 rooms

=(300 x $140) + ($100 x 250)

=$42,000 +$25,000

=$67,000

6 0

3 years ago

Assume that General Electric (GE)'s current assets are $401 billion, fixed assets are $797 billion, current liabilities are $323

notka56 [123]

Answer:

Answer is explained below in the explanation section.

Explanation:

Solution:

We can not solve this question as it lacks necessary data.

1. GE's Translation Exposure using current/noncurrent:

$401 billion - $401 billion = 0.

0 is the GE's translation exposure using current/noncurrent method.

2. Using Monetary/Non-monetary:

We can not calculate this requirement as we don't have the breakdown of GE's assets and liabilities under monetary/nonmonetary. So, it is not possible under the given information.

3. GE's Translation Exposure using Temporal method:

Again, we do lack necessary data to solve for this requirement. We need GE's breakdown of current assets and inventory and monetary assets to solve this question. Therefore, it is not possible to solve this question.

4. GE's Translation Exposure Using Current Rate methods:

GE's Exposure = (Current Assets + Fixed Assets) - Current Liabilities

GE's Exposure = ($401 billion + $797 billion) - $323 billion

GE's Exposure = ($1198 billion) - $323 billion

GE's Exposure = $875 billion

8 0

3 years ago