<span>This type of ration is known as the terms of trade between Maldonia and Sylvania. Terms of trade, simply put, is the ratio of what a country agrees to export in reference to a good they will be importing from another country. In this case, the terms of trade are not monetary but an equal trade of two separate goods between two different countries.</span>
Answer:
a. $39,790.
Explanation:
The computation of the incremental income of processing further is shown below:
Sales - Deluxe - 11,900 Units × $31.10 $370,090
Sales - Super - 5,900 Units × $19.90 $117,410
Total Sales $487,500 (a)
Further Processing Costs $11,900
Sale Price of speciality Food $435,810
19,900 Units × $21.90
Total $447,710 (b)
Net Incremental Income $39,790 (a - b)
Hence, the correct option is a.
Goods and services are not factors of production.
Factors of production are inputs that are needed to provide goods or services. They include, land, labor, capital, and entrepreneurship.
<h2>Further Explanation:</h2><h3>Factors of reproduction </h3>
- Factors of reproduction or resources are inputs or resources that are used in the generation of goods and services with an aim of making profit.
- There are four main factors of production which include; Land, Labor, Capital and Entrepreneurship.
<h3>Land </h3>
- This refers to all the natural resources that are available to be used in the production of goods.
- These natural resources includes raw materials from the ground, non-renewable resources such as petroleum and renewable resources such as timber.
- The income or reward earned from land as a factor of production is rent.
<h3>Labor </h3>
- This refers to the manpower or work done by human beings.
- The value of labor depends on the skills, education and motivation of workers.
- The reward for labor as a factor of production is wages and salaries.
<h3>Capital </h3>
- This refers to the capital goods, that is, man-made objects that are used for production of goods and services such as machinery, equipment and chemicals.
- They also include industries and commercial buildings.
- The reward or income earned from capital goods is interest
<h3>Entrepreneurship </h3>
- It involves coming up with an idea and developing it into profitable business.
- An entrepreneur is therefore an individual who combines the other factors of production to build a business and add the supply in the economy.
- The reward or income earned by entrepreneurs is profit.
Keywords: Factors of production, labor, land, capital
<h3>Learn more about</h3>
Level: High school
Subject: Business
Topic: Factors of reproduction
Answer:
Net income for the year = $257,000
Explanation:
Retained earnings for the year= Net income - dividends paid.
Since no dividends were paid, retained earnings for the year = net income for the year. At the end of each accounting period, retained earnings are reported on the balance sheet, and the retained profits for the year are added to the beginning balance of retained earnings, to give a cumulative ending balance of $2,499,000.
therefore retained earnings for the year = ending retained earnings balance - beginning retained earnings balance = $2,499,000.-$2,242,000= $257,000.
Net income for the year is thus = $257,000 since no dividends were paid.
<span>Value added at Alejandro's store at 2016 is the profit he made after deducting expenses.
His expenses are as follows: $150,000 worth of jerseys + employed one worker for $40,000 + $20,000 worth of supplies from an office supply store = $ 210, 000. Since he sold the Jersey for $280, 000; he made a profit of $ 280, 000 - $ 210, 000 = $ 70, 000. Value added to Alejandro's store is $70, 000</span>
