Answer: This means: "d. Your economic profit has gone down and your accounting profit has stayed the same."
Explanation: The difference between the accounting and economic benefit is associated with the type of cost that each includes:
The accounting benefit is nothing more than the difference between income and cost. In this case it is still $50000.
The economic benefit includes not only explicit costs. The economic benefit is the difference between income and total costs (explicit and implicit). Therefore, this benefit is less than the accounting benefit. Because in this case the cost of working at home is considered.
Management moving production or other parts of the company's value chain to countries where wages are lower is an example of cost drivers.
<h3>What are cost drivers in business?</h3>
The cost drivers can be defined to be the direct cause of the expenses that may occur in a business. These are the activities that may cause a cost to happen in the business. For instance this could be the amount of water that is used monthly in a given area.
Hence we can say that management moving production or other parts of the company's value chain to countries where wages are lower is an example of cost drivers.
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Answer:
1. 2. April 30 $11600
31-May $20100
2. April 30 $3,200
31-May $11,90
3. Profit April 0
May$800
June $2975
Explanation:
1) Calculation for Work in Process Inventory at
April 30 and 31-May
Work in Process Inventory at
April 30=7500+4100
Work in Process Inventory at
April 30=$11600
Work in Process Inventory at31-May =4100+6900+4700+4400
Work in Process Inventory at31-May= $20100
2) Calculation for Finished Goods Inventory at
April 30 and 31-May
Finished Goods Inventory at
April 30: $3,200
Finished Goods Inventory at 31-May =7500+4400
Finished Goods Inventory at 31-May= $11,900
3) Calculation for Gross Profit
Gross Profit April : 0
Gross Profit May =3200*25%
Gross Profit May=800
Gross ProfitJune :- Job 10 =(7500+4400)*25% Gross Profit June 2975
Answer:
(a) What is the net present value of this potential investment?
Net present value of Investment is $(3,903)
(b) Should you invest in this machine?
We should not invest in this investment because Net present value of this investment is negative by discounting Minimum acceptable rate of return.
Explanation:
Present Values:
Revenue $144,146
O&M Cost ($48,049)
Initial Investment <u>$(100,000)</u>
Net Present value $(3,903)
Working :
Present Value Calculation = P x ( (1- ( 1 + r )^-10) / r
Revenue = $21,000 x ( (1- ( 1 + 0.075 )^-10) / 0.075 = 144,146
O&M Costs = $7,000 x ( (1- ( 1 + 0.075 )^-10) / 0.075 = 48,049
Christopher Columbus discovered the Jew World, but did not know that it was an unknown world. Because of his voyages, Spain was ablemto settle in present-day Florida and Mexico. Spain also settled down in most of Latin America. Also, Spain settled in half of South America. Although, now al of the places they settled in have revolted and gained independence from Spain, or were sold to other countries and later got their independence.
