Answer: Option B
Explanation: Opportunity cost refers to the of loss of profit when an individual or firm chooses one alternative over other.
The statement in the given case, depicts the opportunity cost one has to pay of using the scarce resources that could be sued on different alternatives.
The lunch is never free depicts that one could have used it in other alternatives that may have produced some economic benefits.
Hence, the correct option is B.
Answer:
Service facilities must be located close to suppliers and laborers.
Explanation:
Services, unlike products, are intangible and are not produced or delivered the same way as products are.
<u>While production facilities for products, should be located close to suppliers and laborers, this is not the case with service facilities.</u>
Cash Balance at the beginning of February:
70,000
Collected $25,000 of AR:
+25,000
Paid 10,000 owed
-10,000
Cash Balance at the end of February:
70,000 + 25,000 - 10,000 = 85,000
Answer: 25%
Explanation:
The annual rate of return is calculated by simply dividing the Annual income by the average investment.
Annual Income
Annual revenues of $133,500
Annual expenses of $76,000
Annual Income = Revenues - Expenses
Annual Income = $57,500
Average Investment
Calculated by dividing the Addition of the beginning and ending (salvage value) Investment figure by 2.
= (449,000+11,000)/2
= $230,000
Annual Rate of return is therefore,
= 57,500/230,000
= 0.25
= 25%
Answer:
Joint costs allocated to Product Y = $60,000
Explanation:
Given:
Particular Product Units Produced Sales
X 5,000 $70,000
Y 3,000 $30,000
<u>Z 2,000 $100,000</u>
<u>Total 10,000 </u>
Joint costs allocated to Product Y = (Total Joint costs × Y's total unit) / Total units produced
Joint costs allocated to Product Y = ($300,000 × 3,000) / 10,000
Joint costs allocated to Product Y = $90,000
