Answer:
The correct option is B
Explanation:
In order to compute the profit, the accountant consider the Explicit cost so,
Explicit Cost = Borrowed amount × Interest rate + Ingredients amount
= $30,000 × 3% + $25,000
= $259,000
Where Revenue is $60,000
Profit = Revenue - Explicit Cost
= $60,000 - $259,000
= $34,100
Economic Profit is computed as:
Economic Profit = Total Profit - Implicit Cost
= $34,100 - $40,600
= - $6,500
where
Implicit Cost = Salary + Interest
= $40,000 + ($20,000 × 3%)
= $40,000 + $600
= $40,600
Therefore, Louis says profit is $34,100 and Greg says she lost $6,500
Answer:
The interest revenue will Savor record in Year 1 on this lease at 9% is $347,697
Explanation:
Present value of Lease Payment = $4,561,300
Less: First Payment on Jan 1, 2018 = $698,000
Remaining Balance = $3,863,300
Interest Revenue for Year 1 at 9% = $3,863,300 × 9%
Interest Revenue for Year 1 at 9% = $347,697
In many developing countries, the share paid in a deficit budget was as much as the united amount for water, health, agriculture, roads, transport and finance.
<h3>What is the surplus and deficit budget?</h3>
A budget surplus is when extra money is gone over in a budget after expenses are paid. A budget deficit ensues when the federal government spends more money than it contains in revenue. Internal loans that drive up for the bulk of public debt are further divided into two broad types – marketable and non-marketable debt.
Anyone having borrowed funds or interests from another owes a debt and is beneath obligation to return the goods or repay the funds, usually with interest. For governments, the demand to borrow to finance a deficit budget has led to the growth of various states of national debt.
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Answer:
The break-even point in economics, business—and specifically cost accounting—is the point at which total cost and total revenue are equal, i.e. "even". There is no net loss or gain, and one has "broken even", though opportunity costs have been paid and capital has received the risk-adjusted, expected return.
Explanation:
Answer:
1495 filters are considered as safety stock.
Explanation:
d = 80 filters, std devd= 5, L = 14 days, std dev L= 2 days
Std dev dL = Sq rt ( Lσ d2 + d 2σ L2 ) = sq rt ( 350 + 25600) = 161 filter
z= 2.33 at 99% SL
safety stock = 2.33 X 161 = 375 filter
Reorder point = dL + Safety stock = 80 X 14 + 375 = 1495 filters
