Workplace communication can suffer when individuals

Cameron visits a sporting goods store to buy a new set of golf clubs. He is willing to pay $750 for the clubs but buys them on s

svetoff [14.1K]

Answer:

$175

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Consumer surplus = willingness to pay - price of the good

Consumer surplus = $750 - $575 = $175

4 0

3 years ago

Interstate Manufacturing is considering either replacing one of its old machines with a new machine or having the old machine ov

Aleksandr-060686 [28]

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

a) Net Present Value of Alternative 1

Given that

Net Initial cash investment = $150,000

Rate of return on investment = 10%

Salvage value of old machine = $15,000

Subsequent Cash Inflow is

= Expected Revenue Generated - Operating Cost After Overhaul

= $95,000 - $42,000

= $53,000

Year Subsequent Cash Inflow($) Present Value Table (10%) Present Value Of Cash Inflow($)

1 $53,000 0.909 $48,177

2 $53,000 0.826 $43,778

3 $53,000 0.751 $39,803

4 $53,000 0.683 $36,199

5 $68,000

(53,000+15,000) 0.621 $42,228

Total $210,185

Now

Net Present Value is

= Present Value of Cash Inflow - Present Value of Cash Outflow

= $210,185 - $150,000

= $60,185

b).Net Present Value of Alternative 2

Net initial cash investment = 300,000

Rate of return on investment = 10%

Cash Outflow is

= Expected Revenue Generated - Operating Cost

= $100,000 - $32,000

= $68,000

Year Cash Outflow($) Present Value Table (10%) Present Value ($)

1 $68,000 0.909 $61,812

2 $68,000 0.826 $56,168

3 $68,000 0.751 $51,068

4 $68,000 0.683 $46,444

5 $88,000 0.621 $54,648

($68,000 + $20,000)

Add: Salvage value of old machine now $29,000

Total value $299,140

Now

Net Present Value is

= Present Value of Cash Inflow - Present Value of Cash Outflow

= $299,140 - $300,000

= -$860

c).According to the analysis, we recommended alternative 1 for selecting by management as it contains positive net present value

7 0

3 years ago

Simple Interest versus Compound Interest [LO1] First City Bank pays 7 percent simple interest on its savings account balances, w

inna [77]

Answer:

You would have $1,251 more money in second city bank than the first city bank.

Explanation:

First city bank pays 7% simple interest.

Interest = (PRT)/100

Interest = (6000 * 7 * 9)/100 = 378000/100 = $3,780

Amount in first city bank after 9 years = 6000 + 3780 = $9,780

The second city bank pays 7% interest compounded annually, so we would find the amount after 9 years.

P = $6,000

R = 7% = 7/100 = 0.07

T = 9

A = P(1 + R) ^ {t}\\

A = 6000(1 + 0.07)^ {9}\\

A = 6000(1.07)^{9}\\

A = 6000 * 1.838459212420\\

A = 11030.75527452\\

A = 11031

Amount after 9 years in second city bank = $11,031

Difference between first city bank and second city bank: 11031 - 9780 = 1251.

8 0

3 years ago

Companies operating in a highly automated environment that produce many different products with varying levels of production sho

PSYCHO15rus [73]

Answer:

Activity based costing says that we must not absorb the Overhead cost on the basis of one absorption basis as this overhead is not generated as a result of this absorption basis(Machine hrs or labor hours). This use of one absorption basis is inappropriate (not fair allocation). We must find a fair basis that drives this cost. Upon investigation the management found that the total overhead cost suppose which is $1,050,000 can be divided into three cost pools (parts) and each part has a cost driver(a basis of allocation) which can be used to allocate this cost.The costs in the ABC system are allocated to unit product on more fair basis than the tradition absorption costing which only assume one fair basis for allocation of overhead costs. ABC criticizes traditional costing technique for using only one basis for absorption of Overheads.

Now following example will help you in understanding the difference between Absorptiion Costing and Activity based costing.

Suppose both Mr. A and Mr. B drank 5 glasses of juices. Each glass of juice costs $4. According to the Traditional absorption costing technique each individual must pay:

(5 Juices/2)*$4=$10

But ABC says its unfair, use a more appropriate basis for cost allocation. So upon investigating we came to know that Mr. A drank 3 glasses of juice and Mr. B drank 2 glasses of juice. So Mr. A must pay $12(3*$4) and Mr. B must pay $8(2*$4). This is more appropriate or fair basis of absorbing the overhead cost to each individual and is Activity Based Costing.

6 0

3 years ago

The revenue, in millionsmillions of dollars, for a company in year tt is given by the function: r(t)=15e0.19t,0≤t≤15 r(t)=15e0.1

Maslowich

The net profit of the company in this case is given by the subtraction of the income minus the costs.
We have then:
b (t) = r (t) - c (t)
b (t) = 15 * e ^ (0.19 * t) - 12 * e ^ (- 0.03 * t).
We must determine the number of years.
from january 1st in the year 2000 until january 1st in the year 2007:
t = 2007-2000 = 7.
We have then evaluating t = 7 in the function:
b (7) = 15 * e ^ (0.19 * 7) - 12 * e ^ (- 0.03 * 7).
b (7) = 46.99 millions of dollars
answer:
the net profit was 46.99 millions of dollars

5 0

3 years ago