Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
D. $77,600
Explanation:
The $77,600 made to purchase equipment would be reported as a cash outflow in the investing activities section. This is because asset purchased such as equipment is an investment while the cash used to purchase the asset is regarded as cash outflow.
Dividends are recorded in the financing section, while cash paid for interest and paid to suppliers would be recorded in the operating activities.
Answer:
No, because the second method has lower total costs of production.
Explanation:
In a bid to make profits businesses must always compare different processes and choose the cheapest one.
This will eventually reflect in the profitability of the business.
In this instance let's get the cost of each process.
Fabric costs $110 a bolt and labor costs $20 an hour.
The first dress maker can sew 400 garments with 100 bolts of fabric and 1,500 hours of labour
Total cost = (100 bolts * 110) + (1500 * 20)
Total cost = $41,000
For the second dress maker he can sew 400 garments with 150 bolts of fabric and 1,000 hours of identical labour
Total cost = (150 *110) + (1000 * 20)
Total cost = $36,500
As can be seen the second dressmaker has a lower cost of production so he is more efficient than the first dress maker
Answer:
a. How much time would it take the two to complete the project if they divide the calculations equally and the slides equally? Briefly discuss.
Brian: 5 hours for PowerPoint and 5 hours for the calculations, total 10 hours.
Debbie: 10 hours for PowerPoint and 6 hours for the calculations, total 16 hours.
In total they would spend 26 hours combined.
If they divide the work equally, they will spend too much time.
b. How much time would it take the two to complete the project if they use comparative advantage and specialize in calculating or preparing slides? Briefly discuss
Brian will spend 10 hours doing PowerPoint slides and Debbie will spend 12 hours doping calculations. Total time spent 22 hours. By specializing they will save 4 hours.
c. If Brian and Debbie have the same opportunity cost of $5 per hour, is there a better solution than for each to specialize in calculating or preparing slides? Briefly discuss
Yes, Debbie could pay $50 to Brian so that he does everything in 20 hours. That way they can save 2 more hours.
Answer: I don’t think there’s anything else, maybe That’s why a lot of people don’t like baruto because it’s kinda unfinished.
Explanation:
