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3 years ago

Opportunity costs refer to_____________.

Business

1 answer:

Mamont248 [21]3 years ago

4 0

Answer:

D. trade-offs associated with financial decisions.

Explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

Let's assume Martin can produce either 5 jeans or 10 shirts in one hour. If Martin decides to produce jeans instead, his opportunity cost are the shirts he trades off when he decided to produce jeans.

I hope my answer helps you

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Sorry, I withdraw my question.

guajiro [1.7K]

Answer: >?

Explanation:

8 0

3 years ago

Read 2 more answers

Daily demand for a certain product is normally distributed with a mean of 138 and a standard deviation of 13. The supplier is re

VMariaS [17]

Answer:

A. Continuous review system

B. Order quantity = 2,049 Books

C. Reorder point=987

Explanation:

a. To manage inventory, the company is using CONTINUOUS REVIEW SYSTEM

b. Calculation to find the order quality

Using this formula

Order quantity = √((2DS)/H)

Let plug in the morning

Order quantity=√ ((2 x 49,404 x 17)/0.40)

Order quantity = 2,049 Books

Calculation for annual demand

Annual demand=138*358 days

Annual demand=49,404

C. Calculation for reorder point

First step is to find the σL

73 % S.L. - z = 0.613

Using this formula to find the σL

σL = (Lσ^2)

Let plug in the formula

σL=√(7(13)^2)

σL= 34.39

Second step is to find the Reorder point using this formula

Reorder point = d bar(L) + zσL

Let plug in the formula

Reorder point = (138)(7) + 0.613(34.39)

Reorder point = 966+21

Reorder point=987

4 0

3 years ago

Digg Co. installs a manufacturing machine in its factory at the beginning of the year at a cost of $36,000. The machine's useful

Nastasia [14]

Answer:

Annual depreciation (year 1)= $1,400

Explanation:

Giving the following information:

Buying price= $36,000.

Useful units= 300,000 units of product.

Salvage value= $6,000

During its first year, the machine produces 14,000 units of product.

To calculate the depreciation expense for the first year under the units of production method, we need to use the following formula:

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Annual depreciation= [(36,000 - 6,000)/300,000]*14,000

Annual depreciation= 0.1*14,000= $1,400

3 0

3 years ago

Sweat equity, and other methods of reducing the initial cost of getting a company off the ground without resorting to amassing o

vovangra [49]

Answer:hes wrong i just failed a mf test cause of it the right answer is bootstrapping on oddy

Explanation:

3 0

3 years ago

Galvatron Metals has a bond outstanding with a coupon rate of 6.1 percent and semiannual payments. The bond currently sells for

Eva8 [605]

Answer:

After tax cost of debt is 4.16%

Explanation:

The yield on the debt which is pre-tax cost of debt can be computed using the rate formula in excel, which is given as follows:

=rate(nper,pmt,-pv,fv)

where nper is the number of coupon payments,this is calculated as 19*2 since it has a semi-annual coupon interest

pmt is the periodic coupon payment 6.1%/2*$2000=$61

pv is the current price of the bond which is $1933

fv is the face value repayable on redemption $2000

=rate(38,61,-1933,2000)

=3.20%

This is semi-annual yield , annual yield is 3.20%*2=6.40%

After tax cost of debt=6.40%*(1-t)

where t is the tax rate at 35%=0.35

after tax cost of debt=6.40%*(1-0.35)

=4.16%

5 0

3 years ago