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k0ka [10]
3 years ago
15

Zach has decided to start his own photography studio. To purchase the necessary equipment, Zach withdrew $10,000 from his saving

s account, which was earning 3% interest, and borrowed an additional $5,000 from the bank at an interest rate of 8%. What is Zach's annual opportunity cost of the financial capital(implicit + explicit)that has been invested in the business?
Business
1 answer:
Serga [27]3 years ago
3 0

Answer:

Zach's annual opportunity cost of the financial capital(implicit + explicit)that has been invested in the business is $700.        

Explanation:

opportunity cost = 3%($10,000) +8%($5,000)

                           = $300 + $400

                           = $700

Therefore, Zach's annual opportunity cost of the financial capital(implicit + explicit)that has been invested in the business is $700.        

   

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A produce distributor uses 779 packing crates a month, which it purchases at a cost of $12 each. The manager has assigned an ann
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Answer:

$1,498.86

Explanation:

Given that;

Packing of crates per month(u) = 779

Annual carrying cost of 39% of the purchase price per crate

Ordering cost (S) = $27

D = 779 × 12 = $9,348 crates per year

H = 0.39P

H = 0.39 × $12

H = $4.68 crates per year

Total ordering cost = D/Q × S

= ( $9,348 / 779 ) × $27

= $324

Total Holding cost = Q / 2 × H

= ( 779 / 2 ) × $4.68

= $1,822.86

Annual savings = Total holding cost - Total ordering cost

= $1,822.86 - $324

= $1,498.86

The firm would be saving $1,498.86 annually.

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8 0
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A minor can disaffirm a contract if:
SashulF [63]

Answer:

a. he or she has not ratified the contract on reaching majority.

Explanation:

Generally a minor is allowed to dissaffirm a contract they entered when they were underaged. Also when they attain the age of majority they will need to ratify the contract for it to be binding.

In the case where the contract has not been ratified on reaching majority, it can still be dissaffirmed.

Contracts with minors are void, and only some state laws allow for ratification of the contract on attainment of majority age.

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In November, one of the processing departments at Goodsell Corporation had beginning work in process inventory of $36,000 and en
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Answer:

c) $463,000

Explanation:

<u> Goodsell Corporation </u>

<u>FIFO Method </u>

<u></u>

Current Costs

Costs Added                  $ 427,000

<u>Add Beginning Work in Process Inventory  $36,000</u>

<u>Total Current Cost                                      $ 463,000</u>

Cost Transferred Out                   $ 428,000

<u> Add Ending Work in Process Inventory  $35,000</u>

<u>Total Current Cost                                      $ 463,000</u>

FIFO assigns the current period costs to the inventories. Current period costs are obtained by adding the costs transferred out and ending inventories costs  or beginning costs and costs added.

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