Online banking tools allow you to pay bills from your computer.

When the interest rate increases, the opportunity cost of holding money Group of answer choices increases, so the quantity of mo

Contact [7]

An increase in the interest rate increases the opportunity cost of holding money and leads to a reduction in the quantity of money demanded

<h3>What is opportunity cost ?</h3>

The opportunity cost of a particular activity option in microeconomic theory is the loss of value or benefit that would be incurred by engaging in that activity, as opposed to engaging in an alternative activity that offers a higher return in value or benefit.

The value of the next best alternative or option is referred to as the opportunity cost. This value may or may not be monetary. Value can also be measured using other criteria such as time or satisfaction. One formula for calculating opportunity costs could be the ratio of what you give up to what you gain.

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5 0

2 years ago

Lancelot Corporation manufactures tennis gear and uses budgeted machine-hours to allocate variable manufacturing overhead. The f

Ivenika [448]

Answer:

$56,000 Favorable

Explanation:

The computation of the flexible-budget amount for variable manufacturing overhead is shown below

The Budgeted machine hours per unit os

= 24,000 ÷ 8,000

= 3

The Budgeted machine hours allowed for 8,500 units is

= 8,500 × 3

= 25,500

Now the Budgeted variable overhead rate per machine hour is

= $288,000 ÷ 24,000

= $12.00

Now

Flexible-budget amount is

= 25,500 × $12.00

= $306,000

So, the Flexible-budget variance is

= $250,000 - $306,000

= $56,000 Favorable

3 0

3 years ago

Currently, you make one of the components needed for final assembly of your product and you are considering buying the part from

VashaNatasha [74]

Answer:

1. Break even quantity is 18,125 units

2. Cost to make 28,000 units = $ 775,000

3. Total costs to buy 28,000 units = $ 696,000

4. Savings by using low cost option ( buy from outside) $ 79,000

Explanation:

Computation of Break even point

Variable cost to make equipment in house $ 25 per unit

Cost to purchase the unit from outside $ 17 per unit

Differential Cost per unit $ 8 per unit

Fixed costs to be paid to outside supplier $ 220,000

Fixed costs to be incurred in house $ 75,000

Incremental fixed costs $ 145,000

Break even point - Differential in fixed costs / Differential cost per unit

$ 145,000/ $ 8 = 18,125 units

Computation of costs to make 28,000 units

Variable costs per unit - $ 25 per unit

Units to be produced - 28,000 units

Total Variable costs $ 25 * 28,000 units $ 700,000

Fixed costs $ 75,000

Total costs to make 28,000 units $ 775,000

Computation of costs to buy 28,000 units

Variable costs per unit - $ 17 per unit

Units to be produced - 28,000 units

Total Variable costs $ 17 * 28,000 units $ 476,000

Fixed costs $ 220,000

Total costs to make 28,000 units $ 696,000

Computation of savings

Buying 28,000 units $ 775,000

Making 28,000 units $ 696,000

Savings from buying from outside $ 79,000

6 0

3 years ago

How does a local water budget differ from the water budget of the whole earth?

Brrunno [24]

The way that a local water budget differs from the water budget of the whole Earth is that the local water budget is not balanced and the whole Earth is balanced.
Some societies in their local communities have more water than others, meaning that at the local level, these budgets are not equal, because some budgets are higher than the other ones. However, if you take a look at the budget for the whole planet, you will see that it is pretty balanced.

6 0

3 years ago

Someone help me with this plz

shepuryov [24]

Answer:

With what

Explanation:

post the pic/question next time

8 0

3 years ago