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Ludmilka [50]
3 years ago
5

Consider the following scenario to answer the following questions: Kukla makes tables, with an opportunity cost of 3 rugs per ev

ery 4 tables. Zola makes rugs, with an opportunity cost of 2 tables per every 3 rugs. Ollie proposes that Kukla give Zola 2 tables in exchange for 2 rugs. What are Kukla and Zola’s reactions?
A. Neither Kukla nor Zola likes the propoşal.
B. Zola likes the proposal, but Kukla does not.
C. Kukla likes the proposal, but Zola does not.
D. Ollie's proposal is not feasible.
E. Kukla and Zola both like the proposal
Business
2 answers:
mote1985 [20]3 years ago
3 0

Answer:

E

Explanation:

In this question, we are told to state what the reaction of Koka and Zola will be;

Kukla and Zola both like the proposal. As according to the given opportunity cost for Kukla (3 rugs per every 4 tables) she can get 1.5 rugs for 2 tables .But with the offer made now she can get 2 rugs for giving 2 tables.

Given the opportunity cost for Zola ( 2 tables per every 3 rugs ) she must give 3 rugs for getting 2 tables. But with the offer made she can now get 2 tables for giving away only 2 rugs .

So both Kukla and Zola are happy with the offer.

weeeeeb [17]3 years ago
3 0

Answer:

C) Kukla likes the proposal, but Zola does not.

Explanation:

Kukla makes tables:

  • opportunity cost of 0.75 rugs per table
  • opportunity cost or 1.33 tables per rug

Zola makes rugs:

  • opportunity cost of 1.5 rugs per table
  • opportunity cost of 0.67 tables per rug

Kukla will want to exchange two tables (with an opportunity cost of 2.67 rugs) for two rugs because he (or she?) will gain 0.67 rugs.

Zola will not want to exchange two rugs (with an opportunity cost of 1.33 tables) for two tables because she (or he?) will lose 0.67 tables.

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AysviL [449]

Answer:

Total deduction                               2,443.21

Explanation:

8,288

x 6.20% Sccial Security                      513.856

x 1.45% Medicate                                120.176

x 6.20% FUTA&SUTA  (for 7,000)       434              

Income tax witheld                           1,375.17

Total deduction                               2,443.21

We will multiply his taxable wages for period by the tax rate.

We must noticew FUTA and SUTA applies fdor the first 7,000 only so we multiply by 7,000 not by 8,288

3 0
3 years ago
Identify how changes within an organization affect the OM strategy for a company. For​ instance, discuss what impact the followi
Ierofanga [76]

Answer:

a. Maturing of a product

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This will cause many changes in the strategy as technological innovation would reduce manual labor cost. Also, the organization would need skilled employees to deal with the new technology.

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6 0
3 years ago
Suppose that an investor with a 10-year investment horizon is considering purchasing a 20-year 8% coupon bond selling for $900.
leonid [27]

Answer:

8.67%

Explanation:

PMT (Semi-annual coupon) = par value*coupon rate/2 = 1,000*8%/2 = 40

N (No of coupons paid) = 10*2 = 20

Rate (Semi-annual reinvestment rate) = 7%/2 = 3.5%

Future value of reinvested coupons = FV(PMT, N, Rate)

Future value of reinvested coupons = FV(40, 20, 3.5%)

Future value of reinvested coupons = $1,131.19

FV = 1,000

PMT (Semi-annual coupons) = 40

N (No of coupons pending) = 10*2 = 20

Rate (Semi-annual YTM) = 9%/2 = 4.5%

Price of the bond after 10 years = PV(FV, PMT, N, RATE)

Price of the bond after 10 years = PV(1000, 40, 20, 4.5%)

Price of the bond after 10 years = $934.96

Total amount after 10 years = Future value of reinvested coupons + Price of the bond after 10 years

Total amount after 10 years = $1,131.19 + $934.96

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Total Annual Return = [(Total amount after 10 years / Amount invested)^(1/holding period)] -1

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patriot [66]

Answer:

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