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Vlad [161]
3 years ago
5

LO 2.3Which of the following methods of cost estimation relies on only two data points?

Business
1 answer:
denis23 [38]3 years ago
7 0

Answer:

the high-low method

Explanation:

The high-low method -

It is the method used by comparing the total cost of the highest level of activity with the lowest level of activity , is referred to as the high - low method.  

This method is used in order to separate the fixed and variable costs for a limited amount of data .

Hence , this method compare the data of two points .

Therefore , the correct option from the given options is the high - low method.

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You want to go the Six Flags amusement park. The ticket price to enter and enjoy the rides in Six Flags is $65. You live in Rich
Lyrx [107]

Answer:

Results are below.

Explanation:

<u>The opportunity cost is the amount of money that you won't earn when choosing one option over another. </u>In this case, one option makes you expend money and the other earn money.

Opportunity cost= 12*4 + 25

Opportunity cost= $73

<u>Now, the total cost incorporated what you will expend in Six Flags:</u>

Total cost= 65 + 40 + 73

Total cost= $178

4 0
2 years ago
Al, walks in off the street, says the grounds could use some sprucing up, and offers to do it for $8 an hour. Management gives h
Rufina [12.5K]

Answer:

<u>Option B</u> must pay him as an employee, withhold appropriate taxes and issue a W-2 at year end

Explanation: He is paid based on hours worked, and uses the company equipment thus is an employee who is controlled by an employer. The independent contractors buy their own supplies, provide their own equipment and paid based on tasks performed

4 0
3 years ago
Village East expects to pay an annual dividend of $1.40 per share next year, and $1.68 per share for the following two years. Af
VashaNatasha [74]

Answer:

$15.15

Explanation:

Given:

  • D1 = $1.4
  • D2 = $1.68  
  • Growth = 3.4% = 0.034
  • Discount rate = 13.7 % = 0.137

As we know that:

  • P3= ($1.68 × (1+034)) / (0.137 - 0.034)= $16.86

So, P0:

= $1.40 / 1.137 + $1.68 / 1.1372 + ($1.68+ $16.86)/ 1.1373

= $15.15

Hope it will find you well.

8 0
3 years ago
Avicorp has a $10 million debt issue outstanding, with a 6% coupon rate. The debt has semiannual coupons, the next coupon is due
rjkz [21]

Answer:

Explanation:

Pretax cost of debt is the annual rate(YTM) of the bond. Using a financial calculator, input the following to calculate it;

N = 5*2 = 10

PV = -(95% *10,000,000) = -9,500,000

Coupon PMT = (6%/2)*10,000,000 = 300,000

FV = 10,000,000

then compute semiannual rate; CPT I/Y = 3.604%

convert to annual rate = 3.604*2 = 7.21%(this is the pretax cost of debt)

After tax cost of debt is calculated because interest payable on debt has tax shield. The formula is as follows;

Aftertax cost of debt = pretax cost of debt (1-tax)

AT cost of debt = 7.21% (1-0.40)

AT cost of debt = 4.33%

8 0
3 years ago
Assume that you are working for a manufacturing company in the United States that hopes to sell its products throughout the worl
Nostrana [21]

The correct matches are the following.

1. Increasing the number of products your company exports from the United States to Canada without tariffs that could hurt profits. = e) NAFTA.

2. Resolving an issue that involves rules of trade that are impacting your business as you try to increase distribution to several markets in Africa. = b) World Trade Organization.

3. Selling your products to an expanding middle class of consumers in Guatemala. = d) DR-CAFTA

4. Problems selling to Japanese consumers due to the instability of the exchange rate between American and Japanese currencies. c) International Monetary Fund.

5. Allowing your manufacturing plant in Spain to quickly reduce barriers in its efforts to market and sell products in France. = a) European Union.

Knowing these organizations and their main functions will help you to understand foreign trade, its characteristics in a b¿globalizaed world, and the peculiarities according to each region. Every trade agreement has its details and you want to become an expert in the region you choose to maximize your sales and profits.

That is why many countries associate in trade agreements, as is the case of NAFTA, the North America Free Trade Agreement signed by Mäxico, the United States, and Canada, now turned into USMCA, the United States, México, and Canada Agreement.

8 0
2 years ago
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