1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kifflom [539]
3 years ago
8

"Bubba is a shrimp fisherman who used $2,000 from his personal savings account to buy a boat and equipment for his shrimp busine

ss. The savings account paid 2% interest. What is Bubba's annual opportunity cost of the financial capital that he invested in his business
Business
1 answer:
Katyanochek1 [597]3 years ago
5 0

Options:

A. $20

B. $200

C. $40

D. $400

Answer:C. $40

Explanation: Opportunity cost is a term used in Economics to describe the value of the next most profitable alternative of this an investor puts his or her resources into,in this case the opportunity cost for Bubba is the percentage of the interest which Bubba earned from the interest.

Opportunity cost for Bubba can be calculated as follows

(2%/100)* $2,000=$40.

Opportunity cost helps economists to ensure that resources are effectively put to use.

You might be interested in
Why is the interest rate of a loan one of the most important things to consider when shopping around for loans?
Orlov [11]
<span>The interest rate can drastically change the total amount paid to the lender</span>
7 0
3 years ago
Read 2 more answers
Drying times for newly painted microwave oven cabinets are normally distributed with a mean of 2.5 minutes and a standard deviat
Marina86 [1]

Answer: 3.22

Explanation:

Given that;

mean = 2.5 min

standard deviation = 0.25 min

now to get the value of X required, we say

z = (x - u) / a

where z is the distance from the mean measured in the standard deviation units, x is the value we are interested in, u is the mean distribution, a is the standard deviation of the distribution.

the time delay should be just enough to allow 99.8% of the cabinets to dry completely = 99.8/100 = 0.9980

first we determine an appropriate z value.

Using the standardized normal tables,

value of z for approximately 0.9980 is 2.88

so using our initial equation z = (x - u) / a

we substitute the value

z = (x - u) / a

2.88 = ( x - 2.5) / 0.25

2.88 * 0.25 = x - 2.5

0.72 = x - 2.5

x = 0.72 + 2.5

x = 3.22

5 0
2 years ago
Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2021 are as follows:
Lynna [10]

Answer:

Ending inventory : $868

Explanation:

FIFO (First-In-First-Out) is a method of inventory valuation where the inventory that is received first is sold first. In other words, the earliest inventory is used first. This is common for perishable inventory such as fruits and vegetables which if not used fast, will be wasted.

01/01/21 : Beginning Inventory : 200 units x $5 = $1000

01/15/21 : Purchases : 100 units x $5.3 = $530

01/28/21 : Purchases : 100 units x $5.5 = $550

Total units = 200 + 100 + 100 = 400 units

Units sold = Total inventory available for sale - ending inventory

= 400 - 160 = 240 units.

COGS:

Beginning Inventory : 200 units x $5 = $1000

Purchases : 40 units x $5.3 = $212

Cost of goods sold : $1000 + $212 = $1212

Ending inventory:

Purchases : (100 - 40) units x $5.3 = $318

Purchases : 100 units x $5.5 = $550

Ending inventory : $318 + $550 = $868

6 0
2 years ago
Lowering the discount rate can promote full employment because
Keith_Richards [23]
Lowering the discount rate can promote full employment because <span>companies are more likely to expand and hire more workers. High inflation is the circumstance which usually accompanies a period of economic expansion. </span>
7 0
2 years ago
On June 19, Don Co., a U.S. company, sold and delivered merchandise on a 30-day account to Cologne GmbH, a German corporation, f
nirvana33 [79]

Answer: $197,600

Explanation: Don Co is making a sale to Cologne GmbH and on the date of the transaction there is an exchange rate called the spot rate. Don Co will record in its books the value of the transaction on the set date at the spot rate which is:

200,000 euros @ .988

= $197,600

on the date of the settlement of the debt by Cologne GmbH, the spot rate is also considered which will be 200,[email protected] .995 = $199,000

Note that on the payment date, the exchange rate has gone up and now Don Co has a higher receivable value that what is in its book.

the difference of $1,400 ($199,000-$197,600) will now be noted in the books of Don Co as an exchange gain on the transaction.

8 0
3 years ago
Other questions:
  • When a company applies the initial value method in accounting for its investment in a subsidiary and the subsidiary reports inco
    15·1 answer
  • General motors and chrysler recently experienced financial distress resulting in near bankruptcies fundamentally because
    14·1 answer
  • Permian Underground Machines &amp; Pipes Co. (PUMP) is in the oil and gas equipment and services industry. It is considering a n
    15·1 answer
  • When Jeff Bezos founded Amazon in 1994, he was laying the foundation for the world’s largest ________, because Amazon uses the I
    9·1 answer
  • Jonamser Bank has separate legal, marketing, finance, and human resources divisions. Each of these units has qualified specialis
    8·1 answer
  • Which of the following is not a component included in a standard business plan?
    10·2 answers
  • 2 <br><br> New-derection product innovation
    14·1 answer
  • Trade promotions are sales promotion activities that are targeted for manufacturers, wholesalers, and retailers.
    14·1 answer
  • Which of the following is NOT a promotion strategy or activity
    14·1 answer
  • What is brand personality​
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!