Answer:
Implicit Costs = $35,000
correct option is b. $35,000
Explanation:
given data
total revenue = $100,000
rent = $3,000
overhead averages = $500 per month
Ramona earn = $35,000 per year
to find out
total implicit costs
solution
we know that here Total Rent paid is
Total Rent paid = 3000 × 12
Total Rent paid = $36000
and
Total employee payment = 2000 × 12
Total employee payment = $24000
and
Total ingredient and overhead = 500× 12
Total ingredient and overhead = $6000
and
Explicit Costs = 36000 + 24000 + 6000 = $66000
so here
Implicit Costs = The opportunity cost of not working as a manager
Implicit Costs = $35,000
correct option is b. $35,000
It's somewhat see through
Answer:
d. Tax impact x Capital structure impact x EBIT / Sales
Explanation:
The net profit margin ratio could be computed by dividing the net income from the sales and the net income is come when the expenses are deducted from revenues
Also the capital structure is the combination of equity, preferred stock, debt.
So mainly it is broken into tax impact, capital structure impact and net profit margin ratio
Therefore the option d is correct
Answer: $12,000
Explanation:
As no production has been started yet, no other costs have been incurred by Naples for the equipment other than the $12,000.
The lowest price that Tebit should offer therefore should be the price that the equipment was purchased for as the equipment has not not been used to produce anything and so has not incurred any variable costs or donated any incremental value that would decrease or increase its value.
Answer:
$16,050
Explanation:
The computation of the total amount of the period cost is shown below:
= Sales commission per unit × number of units sold + Fixed selling and administrative expense + Variable administrative expense per unit × number of units sold
= $1.80 × 4,500 units + $6,600 + $0.30 × 4,500 units
= $8,100 + $6,600 + $1,350
= $16,050
