1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alex
3 years ago
10

Suppose a company owns a fancy 3D printer which cost $1500 to buy. The printer depreciates $200 per year. (a) If the interest ra

te is 3 percent, what is the implicit rental price of the printer per year? (b) Does your answer to part (a) depend on whether the company used its own money to buy the printer, or if it took out a loan? Why? Suppose a newer edition of the 3D printer comes out for $2000. Because better technology is used, there is less depreciation; it only depreciates by $150 a year. (c) Calculate the implicit rental price for the new edition of the printer. Which edition of the printer - old or new - has a larger implicit rental price? (d) Suppose the interest rate was instead 5 percent, rather than 3 percent. Which edition of the printer - old or new - has a larger implicit rental price? Compare your answer with part (c), and comment on any difference.
Business
1 answer:
egoroff_w [7]3 years ago
6 0

Answer:

a) Implicit Rental Price:

Normal annual cost = $200

3% of $1,500           =      45

Implicit rental price = $245

b) The answer to part (a) does not depend on whether the company used its own money to buy the printer or if it took out a loan, provided that the cost of the loan remains within the 3% accepted rate.  The reason for my answer is that the calculation of the implicit rental price is an economic measurement that tries to capture the opportunity cost of a project and not just the actual cost.

c) Implicit Rental Price:

Normal annual cost = $150

3% of $2,000          =     60

Implicit rental price = $210

The old edition of the printer has a larger implicit rental price.

d) Interest rate = 5%

Old edition: Implicit Rental Price:

Normal annual cost = $200

5% of $1,500           =      75

Implicit rental price = $275

New Edition:

Normal annual cost =  $150

5% of $2,000          =    100

Implicit rental price = $250

The old edition of the printer still has a higher implicit rental price of $270 compared to the new edition's $250, with a difference of $20.

Explanation:

Determining the implicit rental price for the 3D printer, one is forced to consider the lost interest that the investment in the printer would occasion.  By this, the use of the implicit rental price ensures that the only cost of a project is not the direct costs, but also includes some opportunity costs.  Opportunity costs are costs incurred from the revenue lost because another option is chosen.

You might be interested in
Whatever the quality improvement approach, what key concept(s) is/are common between each approach?
Ber [7]

The common key concepts that are common to the quality improvement approach are the following;

-          Usage of QI tools, this is used for mapping, analyzing and collecting data.

-          Outcomes and measuring are also used.

-          Lastly, application of statistical process control

5 0
3 years ago
When a firm practices perfect price​ discrimination, it A. charges each consumer her reservation price. B. captures all the soci
frosja888 [35]

Answer:

Option E All the statements are correct.

Explanation:

The reason is that the company which practices perfect price discrimination is the one which is charging different to different customers. So the prcie that the firm charges the price that the customer is willing to pay. This is very common in markets the seller present a number of products and quotes a higher price and then have a healthy conversation with you and then agrees the price. Some people agree at the spot and some agree by heavy debate and forces the seller to reduce the cost otherwise the customer is going away. So this means the company is charging reservation price, takes all the consumer surplus from consumer and captures the social gain which is the maximum gain possible to extract from the person.  

Due to charging different prices to different customers the production is almost average and this constitutes to the quantity that it would had produced if it was operating in the competitive market.

So all the answer are correct here.

4 0
3 years ago
What is the business owners commitment to the team during the iteration?
trasher [3.6K]
<span>This part is the unparalleled individual in charge of dealing with the Item Excess and guaranteeing the estimation of the work the improvement group performs. The Item Proprietor has the obligation of characterizing what is the correct item to construct, deciding the request in which highlights will be manufactured, and ensuring that the item really works. The Item Proprietor is in charge of characterizing the highlights of the item to be produced by the group as far as: Usefulness: Recognizes every item prerequisite as an Item Excess Thing and supplies points of interest for those necessities when they are required by the group, including indicating the acknowledgment tests for every necessity Need: Characterizes the request in which those build-up things will be created, as indicated by the esteem that they convey to Clients and clients, which furnishes the group with an Item Accumulation prepared for Dash/Cycle arranging Objective: Characterizes the discharge objectives and settles on choices concerning discharge arranging The Item Proprietor has the accompanying duties: Characterize the highlights of the item Settle on discharge date and substance In charge of the productivity of the item (return for money invested) Organize highlights as per advertise esteem Modify highlights and needs as required Acknowledge or reject work comes about This individual keeps up the Item Excess and guarantees that it is noticeable to everybody. Everybody comprehends what things have the most noteworthy need, so everybody on the advancement Group realizes what will be taken a shot at. The Item Proprietor is one individual, not a board. Boards of trustees may exist that prompt or impact this individual yet colleagues who need to change a thing's need should first persuade the Item Proprietor. Along these lines, hierarchical techniques for setting needs and necessities are affected after some time by this part. For the Item Proprietor to succeed, everybody in the association must regard their choices. Nobody is permitted to guide the advancement colleague to work from an alternate arrangement of needs. Colleagues are not permitted to take after the course of anybody whose heading does not concur with the bearing gave by the Item Proprietor. The Item Proprietor's choices are unmistakable in the substance and prioritization of the Item Excess. This perceivability requires that the Item Proprietor give a valiant effort. Perceivability makes the part of Item Proprietor both a requesting and a compensating background. The Item Proprietor is in charge of the first of the three Scrum services, Dash/Emphasis Arranging. The advancement group assesses the organized Item Overabundance, recognizes the best need things, and focuses on finishing the chose things amid a Run/Emphasis. These things turn into the reason for the Dash/Cycle Build-up. As an end-result of the advancement group's responsibility regarding finishing the chose undertakings, the Item Proprietor submits that they won't acquaint new necessities with the group amid the Run/Emphasis. Prerequisites are permitted to change however just outside the Run/Cycle. After the group starts a Dash/Cycle, it stays concentrated on the objectives of that Run/Emphasis. The main exemption to this decide is that a comparable measure of work can be expelled from a Run/Emphasis to suit another prerequisite.</span>
7 0
3 years ago
Leisure Heating &amp; Cooling installs and services commercial heating and cooling systems. Leisure uses job costing to calculat
marshall27 [118]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Overhead is allocated to each job based on the number of direct labor hours spent on that job.

At the beginning of the current year:

The estimated overhead= $66,750.

Estimated direct labor hours= 4,450

In November, Leisure started and completed the following two jobs:

Job 101

Direct materials used= $16,000

Direct labor hours used=195

Job 102

Direct materials used= $ 10,500

Direct labor hours used= 72

Leisure paid a $30 per hour wage rate.

A) predetermined overhead rate= total estimated manufacturing overhead/ total amount of allocation base

predetermined overhead rate= 66,750/4450= $15 hour

B) Job 101:

Manufacturing overhead allocated= direct labor hours*predetermined overhead rate

Manufacturing overhead allocated= 195*15= $2925

Job 102:

Manufacturing overhead allocated= 72*15= $1080

C) Job 101:

Total cost= direct materials + direct labor + manufacturing overhead

Total cost= 16000 + 195*30 + 2925= $24,775

Job 102:

Total cost= 10500 + 72*30 + 1080= $13740

4 0
3 years ago
PLEASE HELP
loris [4]
<span>C) Cash, debit $11,000; Katelyn's Capital, credit $11,000
</span>
6 0
3 years ago
Read 2 more answers
Other questions:
  • This is the person or persons who offers a good or service.
    6·1 answer
  • A negative result of high tariffs is that they can sometimes lead to
    9·1 answer
  • What can you infer about the family's financial situation? explain how it has changed over the years?
    12·2 answers
  • You sell T-shirts at your school’s football games. Each shirt costs $5 to make and sells for $10. In the season you sell 100 shi
    6·1 answer
  • Kim placed an order with her broker for 800 shares of each of three IPOs being offered this week. Each of the IPOs has an offer
    11·1 answer
  • Securitization, the process of forming new securities by bundling or slicing up groups of securities like mortgages and bonds, i
    13·1 answer
  • Jimmy knows that to pass the fitness test he needs to be able to run 5 kilometers in 35 minutes. His pace monitor measures in mi
    9·2 answers
  • Organizations that typically do not integrate the management of operations in different countries.
    5·1 answer
  • All of the following are reasons why some countries are more efficient than others at using capital and labor, except:
    9·1 answer
  • How do you calculate a company's net worth?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!