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Kisachek [45]
3 years ago
9

Linda’s Autoplex performs oil changes on automobiles, light trucks, and sport utility vehicles. She is a profitmaximizing busine

ss owner whose firm operates in a competitive market. The marginal cost of an oil change is $10. The marginal productivity of the last worker that Linda hired was 1.5 oil changes per hour. What is the maximum hourly wage that Linda was willing to pay the last worker hired?
a. $10
b. $15
c. $20
d. $30
Business
1 answer:
yan [13]3 years ago
8 0
The answer is b $15.......
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"Consider the case of Will who paid $15 to see a movie, but after watching the film for 20 minutes he knows that it’s truly terr
Gelneren [198K]

Answer:

There is an opportunity cost to going to the movie and he should leave the movie.

Explanation:

Yes, there is an opportunity cost involved when the person goes for the movie. The opportunity cost will the work that he can do instead of going to the movie. For instance, if the person has the option to study or to watch a movie and he chooses the movie then the opportunity cost is the study. Moreover, he should leave the movie because it is terrible and if he does other work by leaving the movie then he will be benefited because the opportunity cost of doing other work will be lower.

6 0
4 years ago
A new operating system for an existing machine is expected to cost $565,000 and have a useful life of six years. The system yiel
Inessa [10]

Answer:

The net present value of each potential investment:

                         Machine A        Machine B

NPV                   $167,675             $2,267

Explanation:

a) Data and Calculations:

                                                         Machine A        Machine B

Cost of machine                              $565,000         $410,000

Incremental after-tax income            165,000             75,000

Salvage value                                      25,000             26,000

Estimated useful life                           6 years             8 years

Required rate of return                      10%                   10%

Annuity factor                                     4.355                5.335

PV factor                                             0.564                0.467

PV of incremental after-tax income $718,575         $400,125

                                                ($165,000*4.355)   ($75,000*5.335)

PV of salvage value                            $14,100             $12,142

Total PV of income                         $732,675          $412,267

NPV                                                  $167,675             $2,267

= Total PV of income minus PV of initial investment cost

7 0
3 years ago
Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $2
Ulleksa [173]

Answer:

DR Allowance for Doubtful Accounts                    2,000

CR Accounts Receivable—A. Hopkins                                            2,000

Explanation:

Because Gideon uses the allowance method, when a debt is written off, it will be written off from the allowance that was created for doubtful debts instead of directly to the bad debt account.

Accounts Receivable will be credited to show that it is decreasing and Allowance for Doubtful debt will be debited because expenses are debited when they increase.

6 0
3 years ago
The balance sheets for Plasma Screens Corporation, along with additional information, are provided below:
Nutka1998 [239]

Answer:

Please see the Cash Flow Statement for Plasma Screens Corporation below:

Explanation:

<em>PLASMA SCREENS CORPORATION       </em>

<em>Statement of Cash Flows       </em>

<em>For the Year Ended December 31, 2021       </em>

     

CASH FLOWS FROM OPERATING ACTIVITIES     $

Net Income             68,000

<u><em>Adjustments to reconcile net income to</em></u>

<u><em>net cash provided by operating activities:</em></u><em>      </em><u><em> </em></u>

Depreciation on Fixed Assets          161,000

<u><em>(Increase) Decrease in Current Assets:</em></u>      

Accounts Receivables                   13,900  

Inventory                   (14,900)

Prepaid Rent                     (1,900)

<u><em>Increase (Decrease) in Current Assets:</em></u>      

Accounts Payable              13,900  

Interest Payable              (6,900)

Income Tax Payable          <u>     </u><u>2,900  </u>

NET CASH PROVIDED BY OPERATING ACTIVITIES   <u>236,000</u><u>  </u>

     

CASH FLOWS FROM INVESTING ACTIVITIES      

Purchase of Equipment                                       <u>(109,000)</u>

NET CASH USED IN INVESTING ACTIVITIES     <u>(109,000)</u>

     

CASH FLOWS FROM FINANCING ACTIVITIES      

Payment of Notes Payable                               (115,000)

Payment of Cash Dividends                                     <u> (24,500)</u>

NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES  <u>(139,500)</u>

NET INCREASE (DECREASE) IN CASH       (12,500)

Cash Balance, December 31 2020                154,300

Cash Balance, December 31 2021                 141,800  

7 0
4 years ago
Assume that you have entered into a swap agreement for a notional of 100M USD under which every 6 months you agree to pay LIBOR
hodyreva [135]

Answer:

C) 0.5 USD

Explanation:

Swap is an arrangement in which two parties exchange their interest rates for mutual benefit. One party may receive fixed rate and other will receive floating rate based on LIBOR. In the given scenario the swap agreement was originated when the LIBIOR was 3%. The fixed rate was set to be at 4% so the net gain at the time of inception was 1%. When LIBOR increased after six month the net gain declined to only 0.5%.

4 0
3 years ago
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