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lozanna [386]
3 years ago
15

Narciso Corporation is preparing a bid for a special order that would require 880 liters of material R19S. The company already h

as 280 liters of this raw material in stock that originally cost $6.10 per liter. Material R19S is used in the company's main product and is replenished on a periodic basis. The resale value of the existing stock of the material is $5.45 per liter. New stocks of the material can be readily purchased for $6.20 per liter. What is the relevant cost of the 880 liters of the raw material when deciding how much to bid on the special order?
Business
1 answer:
bija089 [108]3 years ago
6 0

Answer:

$5,456

Explanation:

A relevant cost can be defined as the cost that are said to be in form of a future cash cost that is relevant and important to a particular decision.

The relevant cost:

Current market cost 880 liters × Current market $6.20 per liter

= $5,456.

Therefore the relevant cost of the 880 liters of the raw material when deciding how much to bid on the special order will be $5,456

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Assume that total output in a two-good economy in 2018 consists of 50,000 apples and 2 Tesla cars, with prices of 1$ per apple a
KiRa [710]

Answer:

30%

Explanation:

GDP is the sum of all products and services produced by an economy over a given period of time. In an economy with only two products, GDP will be the sum of the quantity produced by each product at its given price.

Thus, the 2018 GDP will be:

Apples: 50,000 units x $ 1 (price) = $ 50,000

Tesla: 2 (Units) x $ 25,000 (Price) = $ 50,000

GDP 2018 = $ 50,000 + $ 50,000 = $ 100,000

The GDP variation between two years is calculated by adopting a year whose price will be the basis of the calculation, usually the first year chosen, in this case by 2018. Thus, after calculating the GDP of the base year (2018), the GDP of the The following year (2019) will be calculated using the base year price. In other words, let's calculate the 2019 GDP with the quantities sold in 2019, but with the 2018 prices. This is called the real GDP calculation, which really matters for comparison between two years.

<em>Note: Real GDP calculation is required to compare GDP developments between two or more periods. If the nominal GDP (price x quantity of each year) were calculated it would not be possible to compare properly, because in this case the effects of inflation would be infiltrated in the account. Through the calculation of real GDP inflation is isolated, as it uses the same price to calculate GDP each year, in this case the base year.</em>

Apples: 55,000 units x $ 1 (base price) = $ 55,000

Tesla: 3 (Units) x $ 25,000 (Base Price) = $ 75,000

GDP 2019 = $55000+ $75000 = $ 130,000

To calculate the percentage change in GDP simply calculate the difference between the two periods divided by the base year GDP (2018) and multiply by 100.

% GDP Change = (130,000-100,000) / (100,000) * 100 = (30,000 / 100,000) * 1000 = 0.3 * 100 = 30%

Therefore, the GDP percentage growth between 2018 and 2019 was 30%.

6 0
3 years ago
Dr. Faulk's Outdoor Market wants to raise $2 million by selling 20-year coupon bonds at par. Comparable bonds in the market have
Greeley [361]

Answer:

The coupon rate should be: 6.62%.

Explanation:

* Yield to maturity calculation:

With the comparable bond in the market, we have:

+ Semiannual coupon payment = 2 million x 6.3% / 2 = $63,000

+ Price of the bond = 2,000,000 x 96.5% = $1,930,000

=> 1,930,000 = [ (63,000/YTM) x ( 1 - (1+ YTM)^(-40) ] + [2,000,000/(1+YTM)^40] <=> YTM = 3.31%.

* Coupon rate calculation:

To raise $2 million with the duration for 20-year, the present value of the coupon streams from the Bond the company offers plus the present value of the face value repayment in 20 years time; discounting at YTM, should equal to $2 million:

we have:  

2,000,000 = [ (Coupon payment/3.31%) x ( 1 - 1.0331^(-40) ] + [2,000,000/1.0331^40] <=> Coupon payment = $66,200.

=> Coupon rate = Semiannual coupon payment / Face value x 2 = 66,200/2,000,000 x 2 = 6.62%

8 0
3 years ago
The American Red Cross and the American Medical Association are nonprofit businesses. This is because they: A. plan to make a pr
MrRa [10]

Answer:B  exist to benefit a cause but not to make a profit.

Explanation:

They are to provide services which are useful to the members of the society at large.  They exist to promote the interest of members of the public which are social in nature.  With a view to ensure the smooth running of the organisation some individuals are elected to run the organisation in the position of chairman, secretary, and treasurer.  They do prepare receipt and payment account which is similar to cash account while some do prepare income and expenditure account which is similar to profit and loss account.

5 0
3 years ago
A fraud examiner can request a business’s bank records even if the business is not legally obligated to comply.a) trueb) false
galben [10]

Answer:

false

Explanation:

5 0
2 years ago
GNP measures:Select one:a. the same things as GDP, but also includes financial assets.b. production by U.S. citizens wherever th
SCORPION-xisa [38]

Answer:

The correct answer is letter "B": production by U.S. citizens wherever they work in the world.

Explanation:

Gross National Product or GNP is one of a range of indicators economists use to calculate the economic output of a country. GNP is the market value of all goods and services produced by a country's citizens for one year, whether those goods were manufactured inside the country or produced elsewhere.

8 0
3 years ago
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