Explanation:
Spain's opportunity cost of producing a pound of cheese is
= 4 barrels of oil
Austria's opportunity cost of producing a pound of cheese is
= 10 barrels of oil
Spain's opportunity cost of producing a barrel of oil is
=
= 0.25
Austria's opportunity cost of producing a barrel of oil is
=
= 0.1
A country is said to be having a comparative advantage in the production of a commodity if it has a relatively lower opportunity cost of production.
Here, Spain has a lower opportunity cost of producing cheese, so it has a comparative advantage in producing cheese.
Similarly, Austria has a lower opportunity cost of producing oil, so it has a comparative advantage in producing oil.
Spain can gain from trade as long as it is getting more than 4 barrels of oil for a pound of cheese.
While Austria can gain from trade as long as it is getting more than 0.125 pounds of cheese for a barrel of oil.
Both will gain from trade if the price of the trade is 9 barrels of oil per pound of cheese and 7 barrels of oil per pound of cheese.
Spain will not accept 1 barrel of oil per pound of cheese and Austria will not pay 16 barrels of oil per pound of cheese.
Answer:
B) liabilities.
Explanation:
When the payment is received from the customer before performing the services is known as unearned service revenue
The journal entry is
Cash A/c Dr XXXXX
To Unearned Service revenue A/c XXXXX
(Being advance payment is received)
We simply debited the cash account as cash is received and credited the respective account i.e unearned service revenue
Answer:
$152,450
.00
Explanation:
Depreciation is a non-cash item and as such, this will not be included in the cash disbursement for the month.
The cash disbursements for marketing and administrative expenses on the June marketing and administrative expense budget will consider the fixed and variable costs elements excluding depreciation.
Cash disbursements for marketing and administrative expenses on the June marketing and administrative expense budget
= ($1.10 * 7500) + ($152,250 - $8,050)
= $152,450
.00
Answer:
34.285%
Explanation:
<u> Income Statement : </u>
<u>Particular Amount</u>
Sales $175,000
<u>Less: Cost of goods sold $115,000
</u>
<u>Gross profit $ 60,000
</u>
Gross profit Margin = [(Net Sales - cost of goods sold) / Net Sales]100
Gross profit Margin = [($175,000 - $115,000) / $175,000] 100
Gross profit Margin = [$60,000 / $175,000]100
Gross profit Margin = [0.34285]100
Gross profit Margin = 34.285%
Answer: $104.78
Explanation:
Total allocated value per square foot = Selling price - land value - site improvement
= 482,500 - 150,000 - 25,000
= $307,000
Allocated value per square foot = 307,000/2,930
= $104.78