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Step2247 [10]
2 years ago
6

An Uber driver faces costs for driving that include sunk costs like insurance that contribute to the average cost per mile of $.

50. Yet when a rider offers to pay less than that for a ride, the driver agrees because
Business
1 answer:
crimeas [40]2 years ago
4 0

Answer: sunk costs don't increase as driving increases.

Explanation: sunk costs are irrelevant costs because they have already occured in the past and cannot be avoided. Sunk costs thus do not differ between alternatives, and are unavoidable. The calculation for insurance and other sunk costs are likely not based on the amount of rides the Uber picks up, but rather calculated at a constant rate. So regardless of whether or not the rider pays more or less than the $.50 on the insurance, this will not have any effect on the insurance that is constant and has likely already been paid out.

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Michael's, Inc., just paid $2.60 to its shareholders as the annual dividend. Simultaneously, the company announced that future d
mixas84 [53]

Answer:

$65.37

Explanation:

Calculation for how much are you willing to pay today to purchase one share of the company's stock

Using this formula

P/0 = D0 ( 1 + g ) / R-g

Let plug in the formula

P/0 = $2.60 (1 + .056) / .098 - .056

P/0 = $2.60 (1 .056)/0.042

P/0=$2.7456/0.042

P/0=$65.37

Therefore how much are you willing to pay today to purchase one share of the company's stock will be $65.37

6 0
3 years ago
A tremendous flood along the Mississippi River destroys thousands of factories, reducing the nation's capital stock by 5%. What
motikmotik

Answer:

Both employment and the real wage rate would decrease

Explanation:

Given that the capital stock of a nation or country jas a direct impact on such country in terms of savings and investments which directly translates to additional.economic development.

Hence, in this case, when a tremendous flood along the Mississippi River destroys thousands of factories, reducing the nation's capital stock by 5%. What happens to current employment and the real wage rate is that "Both employment and the real wage rate would decrease"

This because there won't be adequate money available to create more employment. And with lease employment opportunities than the available labor, the real wage rate tends to decrease over time.

4 0
3 years ago
g Product #1 Product #2 Historical cost $26 $51 Replacement cost 16 28 Estimated cost to dispose 23 25 Estimated selling price 5
Darya [45]

Answer:Product 1 will be valued at $16,  Product 2 will be valued at $29

Explanation:

Lower of Cost or Market

Lower of Cost or Market is a Method for Valuing inventory which stipulates  that inventory must be valued at the lower of cost or market price. Market price is defined as the replacement cost of inventory. There is however a Criteria to be followed when using Replacement costs

The replacement cost should not exceed or should not be greater than the Net Realizable Value, Net Realizable Value is the net amount we would receive from the sale of inventory after settling cost of selling inventory. If Replacement Cost is greater than Net relizable value, Net Realizable Value will be compared to historical cost in determining the value of inventory

The Replacement Cost Should also not be less than Net relizable value minus Ordinary profit, if it is less , Net relizable value minus Ordinary profit will be compare to historical costs in determining the value of inventory.

Replacement costs will be used if they are lower than Net realizable value and Higher than Net relizable value minus Ordinary profit

Product 1

Historical cost = $26

Net Realizable Value = $52 - 23 = $29

Net realizable Value minus Ordinary Profit = $29 - ( 52 -26) = $3

Replacement Cost $16

Replacement costs ($16) are less than Net realizable value ($29) But they are higher than Net realizable value minus Ordinary Profit ($3),. Product 1 will be valued at the lower of cost $26 or $16

Product 1 will be valued at $16

Product 2

Historical cost = $51

Net Realizable Value = $80 - 25 = $55

Net realizable Value minus Ordinary Profit = $29 - ( $80 -51) = $29

Replacement Cost $28

Replacement costs ($28) are less than Net realizable value ($55). They are also lower than Net realizable value minus Ordinary Profit ($29). Product 2 will be valued at the lower of cost $51 or $29

Product 2 will be valued at $29

5 0
3 years ago
Lauren is the owner of a bakery that earns 0 (zero) economic profit. Last year, her total revenue was $145,000, her rent was $12
kow [346]

Answer: The correct answer is " a. $92,000.".

Explanation: The explicit costs are observable, that is, those that we can easily take into account and decrease our operating result (salaries paid to employees, material costs, taxes, etc.)

So her total explicit cost were: $12 000 + $65 000 + $15 000 = $92 000.

6 0
3 years ago
"Discuss the financial and operational implications for airlines as they try to offer the newest technology services?"
Oksana_A [137]

Answer with Explanation:

The introducing of newest technology would definitely have financial and operational implications. These implications are given as under:

Financial implications

  • Cost Reduction: The operational costs would be reduced by investing in the newest technology which will make the cash flow position better with time.
  • Benefits Lost Risk: It is possible that the investment might not bring value to the company because of any emergent problems, whose mitigation requires incurring of additional costs.
  • Cost Advantage: The lower operational cost can drive higher sales because the company will be charging lower fare prices to its customer thus giving Cost Advantage.
  • Investing in newest technology might not bring value to the company because it is not attracting potential customers but it might pay off later in the form of developed customer loyalty.

Operational implications

  • Implementing a newest technology might improve the operational processes through which the customer go through, which would increase the customer satisfaction.
  • Implementation problems of newest technology.
  • Long term Customer retention will easy for the airline company due increased customer satisfaction.
  • Operational efficiencies related to services will process the customer fastly saving the companies precious time wasted in these process thus reducing the future human resource cost.
  • Using robots might bring adverse marketing because the people might think that the human resource are no more required and risks associated with the acceptance of technology due to cultural differences.
  • Better Security systems would increase the security level and safety levels for the customers.
7 0
2 years ago
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