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3 years ago

Susan can bake 200 cookies in an hour or watch her favorite tv show. If she chooses to watch her show, her opportunity cost is

Business

1 answer:

Oksanka [162]3 years ago

3 0

Answer:

200 cookies

Explanation:

The concept of opportunity cost arises as a result of the limited resources available to satisfy the unlimited human wants.

Opportunity cost is the cost or worth of the item forgone from the list of wants. Hence is is also called real cost or opportunity foregone.

The scale of preference ranks the wants in the order of preference.

If the resources available can only satisfy the first want, the second on the list is the opportunity cost.

As such, Susan's opportunity cost is the 200 cookies she failed to bake.

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Financial data for Stirling Inc. for last year are as follows:

Tom [10]

Answer:

profit margin: 6.04%

Assets turnover: 2.08

ROI 25.89%

Residual Income 137,330

Explanation:

profit margin:

income/sales = 326,480/5,404,000 = 0.060414507 = 6.0414507%

Assets turnover:

$\frac{net \: sales}{average \: assets} \\\\where:\\average \: assets = \frac{ending + beginning}{2}$

(2,561,000 + 2,629,000)/2 = 2,595,000 average assets

5,404,000/2,595,000 = 2.082466281 Assets TO

ROI

$\frac{net \: income}{average \: equity} \\\\where:\\average \: equity= \frac{ending + beginning}{2}$

(1,206,000+1,316,000)/2 = 1,261,000 average equity

326,480/1,261,000 = 25.890563%

Residual Income:

current income - income at desired RoR

That means calculate which income generates a ROI of 15% which is the minimum required return:

ROI = income / equity = 0.15

X/1,261,000 = 0.15

X=1,261,000 x 0.15 = 189,150

Now we calculate the diference between this number and the current income.

326,480 - 189,150 = 137,330 Residual Income

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Ferris Corporation makes a powdered rug shampoo in two sequential departments, Compounding and Drying. Materials are added at th

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Answer:

Materials = 44,000

Conversion = 40,800

Explanation:

Step 1 Determine the Number of Closing Work In Process Units

Closing Work In Process Units = Opening Work In Process Units + Units started in process - Units transferred out

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Units transferred out - 100% = 36,000

Total equivalent units = 44,000

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Note : Ending work-in-process was 60% processed, therefore 60% completed in terms of conversion costs

Closing Work In Process Units - 60% = 4,800

Units transferred out - 100% = 36,000

Total equivalent units = 40,800

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