Answer:
$15,146
Explanation:
$42,000 x .32197* = $13,523 (rounded)
*PV of $1: n = 10; i = 12%
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Paulie's opportunity cost of producing one cup of ice cream is 8.5 t-shirts.
<h3>What is the opportunity cost?</h3>
The potential benefits that a person, investor, or business forgo while choosing between two possibilities are known as opportunity costs. Opportunity costs can be easily disregarded since they are by nature invisible. Understanding the potential opportunities missed when a business or individual chooses one investment over another is necessary for making wiser decisions.
To accurately calculate opportunity costs, it is necessary to balance the benefits and drawbacks of each option.
Opportunity costs have a value that can assist individuals and organizations in making more profitable choices.
Here, the opportunity cost for Paulie for ice cream will be calculated by dividing 17 by 2 Thi will be:
= 17 / 2
= 8.5 t-shirts
Therefore Paulie's opportunity cost of producing one cup of ice cream is 8.5 t-shirts
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Answer:
Net income= $21,480
Explanation:
Giving the following information:
Raw materials used $ 17,600
Direct labor wages 33,600
Depreciation on production equipment 3,060
Rent on manufacturing facilities 4,060
Total manufacturing cost= 58320
Sales salaries and commissions 25,600
Administrative supplies and utilities 5,600
Sales revenue 111,000
Units produced 4,600
Units sold 4,600
In this case total manufacturing cost= cost of goods sold.
Income statement:
Sales= 111,000
COGS= 58320 (-)
Gross profit= 52,680
Sales salaries and commissions 25,600 (-)
Administrative supplies and utilities 5,600 (-)
Net income= $21,480