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3 years ago

If Shawn can produce donuts at a lower opportunity cost than Sue, then ____

Business

1 answer:

Archy [21]3 years ago

4 0

Answer:

(A) Shawn has a comparative advantage in the production of donuts.

Explanation:

Shawn renounce to less goods than Sue when producing donuts.

This meas, Shawn has a comparative advantage in the production of donuts as their cost from the economic point of view are lower.

This do not imply that Sue cannot outproduce Shawn, it means it cost her more than Shawn

For example, if Sue produce 10 Donuts, but to produce donuts resing to produce 20 of other goods, each donut has an opportunity cost of 2

While Shawn can produce 8 donuts and resing to produce 8 of other goods:

each donut has an opportunity cost of 1

Therefore, is better for the overall economy to Shawn produce donuts and trade with Sue for the other good.

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3 years ago

The Carbondale Hospital is considering the purchase of a new ambulance. The decision will rest partly on the anticipated mileage

Shtirlitz [24]

Answer:

a. Year 6 Forecast = 3,775

b. Mean Absolute Deviation (MAD) = 108.3

c. Year 6 Forecast = 3,780

Explanation:

Given

The miles driven during the past 5 years are as follows

Year 1 -- 3,100

Year 2 --- 4,050

Year 3 --- 3,450

Year 4 ---- 3,750

Year 5 --- 3,800

a. The forecast for year 6 is calculated as follows;

Using a 2 year moving average

Forecast = ½(Year 4 + Year 5)

Forecast = ½(3750 + 3800)

Forecast = ½ * 7550

Forecast = 3,775

b. Calculating the Mean Absolute Deviation (MAD), if two years moving average is used.

------------------------------2 year difference ----- Difference

Year 1 -- 3,100 ------------------------------------------

Year 2 --- 4,050 -----------------------------------------

Year 3 --- 3,450 ---- 3,575 -------- 125

Year 4 ---- 3,750 ---- 3,750 ------ 0

Year 5 --- 3,800 ----- 3,600 ------ 200

The 2-year difference column is calculated using.

Summation of previous 2 years forecast * ½

Year 1 and 2 are empty because they don't have previous 2 years.

For year 3;

2 year difference = ½ (year 1 + year 2)

= ½(3,100 + 4,050)

= ½ (7,150)

= 3,575

For year 4

2 year difference = ½ (year 2 + year 3)

= ½(4,050 + 3,750)

= ½ (7,500)

= 3,750

For year 5:

2 year difference = ½ (year 3 + year 4)

= ½(3,750 + 3,450)

= ½ (7,200)

= 3,600

Mean Absolute Deviation (MAD) = (Summation of Difference)/3

Mean Absolute Deviation (MAD) = (125 + 0 + 200)

Mean Absolute Deviation (MAD) = 325/3

Mean Absolute Deviation (MAD) = 108.3

c. for year 6 using a weighted 2-year moving average with weights of 0.40 and 0.60

For year 5:

Forecast = 0.4 * year 4 + 0.6 * year 5

= 0.4(3,750) + 0.6(3,800)

= 3,780

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3 years ago

Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division Queensland New South

PtichkaEL [24]

Answer:

Queensland 14.7%

New South Wales is 24.0%

Explanation:

This is a case of modified return on investment since the question was specific that the return on investment should in terms margin and assets turnover.

The first task would be to compute margin and turnover whereas the return on investment would be the multiples of both performance measures.

Margin =operating income/sales

Asset turnover=sales/average operating assets

operating income/sales*sales/average operating assets=operating income/average assets

This question also require proofing the above formula as I have done.

Margin Assets turnover ROI

Queensland$82,320/$784,000=10.5%$784,000/$560,000=1.4 14.7%

South Wales$118,800/$1,485,000=8% $1,485,000/$495,000= 24.0%

R0I=margin*assets turnover

Queensland=10.5%*1.4=14.7%

New south sales=8%*3=24%

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3 years ago

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Karo-lina-s [1.5K]

Answer:

Radar's additional income for accepting the order is calculated as follows:

Sales - 320 x $460 = $147,200

less Cost of Sales = 320 x $180 + $48,000 = $105,600

Additional Income = $41,600

Explanation:

The additional income of $41,600 is $147,200 - $105,600, which is the result of deducting cost of sales from Sales.

The cost of sales includes the variable cost per bike, including the incremental fixed costs ($48,000) to make this order.

To make a decision whether to accept an order or not, the company needs to consider all variable costs, including the incremental fixed costs. The resulting additional income is what is available to offset the fixed costs.

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3 years ago

You're about to buy a new car for $10,000. The dealer offers you a one-year loan where you pay $860.66 every month for the next

WINSTONCH [101]

Answer:

The actual effective annual rate is <u>3.33%</u>.

Explanation:

Effective Annual Rate (EAR) refers to an interest rate has been adjusted for compounding over specified period of time.

Effective annual rate can therefore be described as the interest rate that paid to an investor in a year after compounding has been adjusted for.

Effective annual rate can be computed using the following formula:

EAR = [(1 + (i / n))^n] - 1 .............................(1)

Where;

i = Annual interest rate claimed by the dealer = 3.28%, or 0.0328

n = Number of compounding periods or months = 12

Substituting the values into equation (1), we have:

EAR = [(1 + (0.0328 / 12))^12] - 1 = 0.0332976137123635

EAR = 0.0333, or 3.33% approximately.

Therefore, the actual effective annual rate is <u>3.33%</u>.

4 0

3 years ago