Chang Industries has 2,000 defective units of product that already cost $14 each to produce. A salvage company will purchase the
defective units as is for $5 each. Chang's production manager reports that the defects can be corrected for $6 per unit, enabling them to be sold at their regular market price of $21. The $14 per unit is a: Multiple Choice Incremental cost. Sunk cost. Out-of-pocket cost. Opportunity cost. Period cost.
-Incremental cost is the total cost of producing an additional unit.
-Sunk cost is a cost that has already been paid and that it is not possible to get it back.
-Out-of-pocket cost is a cost that requires a direct payment in the actual period.
-Opportunity cost is the cost of not receiving a benefit when you choose an alernative over another one.
-Period cost is a cost that is not associated with the production of goods.
According to this, the answer is that the $14 per unit is a sunk cost because the company has already spent that manufacturing the products and it is not able to recover that money.
E S ( elasticity of supply ) = .5 ( supply is inelastic: E S < 1 ) The formula is: E S = Δ Q / Δ P * P / Q, where: Δ Q is the change in quantity, Δ P is change in price, P is initial price and Q is initial quantity. .5 = Δ Q / 25 * 50 / 100,000 Δ Q = .5 * 25 * 100,000 / 5 Δ Q = 25,000 Quantity at the new price: Q ( new ) = 100,000 + 25,000 = 125,000
The correct answer is letter a. Activities related to selecting acceptable risks so that general insurer objectives are met. Underwriting is best described as "<span>Activities related to selecting acceptable risks so that general insurer objectives are met."</span>
Here are the choices a. Activities related to selecting acceptable risks so that general insurer objectives are met. b. Actuarial science c. Production-related activities performed primarily by agents in the field d. Process of developing pricing structures for insurance, often performed by an actuary e. A function most often performed by adjusters
Insider trading is an illegal practice where a person indulges in trading activities for his own benefit with the help of confidential information.
In the above case, Simone took park in insiders trading because she had rights to some confidential information. She made use of that information towards her benefit and sold her shares before time.
