Answer:
A) They would be indifferent, as Sally's income net of costs equals $25,000.
Explanation:
Sally's economic profit = accounting profit - opportunity costs
- accounting profit = $12,000
- opportunity costs = $25,000 - $15,000 in lost salaries + $2,000 (lost investment revenue) = $12,000
economic profit = $12,000 - $12,000 = $0
Since the economic profit is $0, Sally should be indifferent between running her own business or working for someone else.
Answer:
The c orrect answer is A.
Explanation:
Giving the following information:
Annual deposit= 1,410
Annual interest rate= 5%
Number of years= 8 years
To calculate the future value of her investment, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {1,410*[(1.05^8)-1]}/ 0.05
FV= $13,464.24
Answer:
Production
Production departments or companies are the manufacturing branches of a business to produce products or delivery of services to customers
Answer:
Net purchases:
= Purchases - Purchase Returns and Allowances - Purchase Discount
= 500,000 - 14,000 - 9,000
= $477,000
Cost of goods sold:
= Net purchase + Freight-in
= 477,000 + 15,000
= $492,000
