Answer:
The opportunity cost of each pipe and what is the sunk cost is $77 and $67 per pipe respectively.
Explanation:
Opportunity cost: The opportunity cost is that cost which is incurred to choose the best options with the available options.
Sunk cost: The sunk cost is that cost which is not recovered in the future. Its other name is the past cost. It does not help to make future decisions as if it is incurred then it cannot be recovered again
So, the opportunity would be the current price i.e $77
And, the sunk cost is $67 per pipe ($77 - $10)
Answer:
Predetermined manufacturing overhead rate= $10 per direct labor hour
Explanation:
Giving the following information:
Product A:
Direct labor hours= 1,600
Product B:
Direct labor hours= 400
Estimated overhead= $20,000
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 20,000/2,000
Predetermined manufacturing overhead rate= $10 per direct labor hour
B.below the equilibrium price, causing a surplus
<u>Answer:</u>
Difference between money paid to and money received from other nations in trade is called balance of trade is a <u>TRUE</u> statement.
<u>Explanation:</u>
The difference between the export and the import done by the country is usually termed as the balance of trade. Even though the sum of payments and receipts is necessarily equal, in different types of transactions there will be disparities — excesses of transactions and receipts, named deficits and surpluses.
Trade balance does not include any goods (not even product import and export). For example, China, a nation where many of the globe's consumer goods are manufactured and exported, has registered a trade surplus since 1995. Because of its dependence on oil imports and consumer goods, the United States has shown a trade deficit since 1976.
Answer:
Net Investment = 4,000
Explanation:
Gross Investment = 10,000
Depreciation = Market Value - Book value
Depreciation =26,000 - 20,000
Depreciation = 6,000
Net Investment = Gross Investment - Depreciation
Net Investment = 10,000 - 6,000
Net Investment = 4,000
NOTE: Gross investment for 2017 will be the 3 new beds that Sophie bought during 2017 at a total cost of 10,000. To calculate Net investment we should calculate depreciation first by deducting book value from market value.
