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3 years ago

Margo spends $30,000 on one year's college tuition. The opportunity cost of spending one year in college for Margo is:

Business

1 answer:

Tju [1.3M]3 years ago

5 0

Answer:

Purchases she could have made with $30,000 plus the earnings foregone

Explanation:

Opportunity cost refers to the benefit obtained from the next best alternative.

Here, the opportunity cost of spending a year in the college is the purchases worth of $30,000 that she would have do it and the money income that she would have earned it.

Opportunity cost can be represented in terms of monetary and non monetary.

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aylor & Edwards Inc. manufactures television sets. Last month, direct materials (electronic components, etc.) costing $550,0

fenix001 [56]

Answer:

Unitary prime cost= $170.24

Explanation:

Giving the following information:

Last month, direct materials (electronic components, etc.) costing $550,000 were put into production.

Direct labor= $880,000.

Manufacturing overhead equaled $495,000

The company manufactured 8,400 television sets during the month.

Unitary prime cost= (direct material + direct labor)/number of units

Unitary prime cost= (550000 + 880000)/8400= $170.24

7 0

3 years ago

Abba, Inc. is considering dropping a product line. During the prior year, the line had sales of $207,000 and a contribution marg

damaskus [11]

Answer:

Overall net income will decrease by $34,000.

Explanation:

Calculation to determine net operating income

Using this formula formula

Net operating income=Contribution margin -Avoidable costs

Where,

Contribution margin =$124,000

Avoidable costs= Salaries $60,000

+Advertising $20,000+Administrative expenses $10,000

Let plug in the formula

Net operating income=$124,000-($60,000+$20,000+$10,000)

Net operating income=$124,000-$90,000

Net operating income=$34,000 Decrease

Therefore If this product line is dropped overall net operating income will:decrease by $34,000

8 0

3 years ago

Chang, Inc.'s balance sheet shows a stockholders' equity-book value (total common equity) of $750 comma 500. The firm's ear

Artist 52 [7]

Answer:

The price/book ratio is 2.45

This price/book ratio indicates that the Chang, Inc company has 2.45 higher market value of the stock than the book value of the equity

Explanation:

For computing the price/book ratio, we have to apply the formula which is shown below:

= Market price of equity ÷ book value of equity

where,

the market value of equity = firm's earnings per share × price/earnings ratio × number of outstanding common stock shares

= $3.00 × 12.25 × 50,000 shares

= $1,837,500

And, the book value of equity is $750,500

Now put these values to the above formula

So, the answer would be equal to

= $1,837,500 ÷ $750,500

= 2.45

This price/book ratio indicates that the Chang, Inc company has 2.45 higher market value of the stock than the book value of the equity

4 0

3 years ago

A company's flexible budget for the range of 35,000 units to 45,000 units of production showed variable overhead costs of $2 per

Gnom [1K]

Answer:

c. $3,200 favorable.

Explanation:

We know that

Total controllable cost variance = Budgeted overhead cost - actual overhead cost

where,

Budgeted overhead cost = Variable overhead + Fixed overhead

where,

Variable overhead = 40,000 units × $2 = $80,000

And, the fixed overhead = $72,000

So, the budgeted overhead = $152,000

And, the actual one is $148,800

So, the total controllable cost variance would be

= $152,000 - $148,800

= $3,200 favorable

7 0

3 years ago

Is the type of competition that occurs in a competitive market without identical producers.

amm1812

Answer:

Monopolistic

Explanation:

The type of competition that occurs in a competitive market without identical producers is a monopolistic one.

8 0

3 years ago