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arlik [135]
2 years ago
13

Assume India can produce either 15 bottles of milk or 50 cartons of eggs using all of its available resources, and Indonesia can

produce either 25 bottles of milk or 35 cartons of eggs using all of its available resources. After each country fully specializes in producing the good in which it has a comparative advantage, how many cartons of eggs will India produce
Business
1 answer:
diamong [38]2 years ago
5 0

Answer:

50 cartons of eggs

Explanation:

The comparative advantage is a principle in which a country specializes in the production a good in which it has a lower opportunity cost than others.

                 Bottles of milk     cartons of eggs

India                  15                              50

Indonesia          25                             35

In this situation, the opportunity cost for India of producing 1 bottle of milk is producing 3.33 cartons of eggs. The opportunity cost for Indonesia of producing 1 bottle of milk is producing 1.4 cartons of eggs. This means that Indonesia has a lower opportunity cost and a comparative advantage in producing bottles of milk.

In the other part, the opportunity cost for India of producing 1 carton of eggs is producing 0.3 bottles of milk and the opportunity cost for Indonesia of producing 1 carton of eggs is producing 0.71 bottles of milk. This means that India has a lower opportunity cost and a comparative advantage in producing cartons of eggs.

According to this, India would specialize in producing eggs as it has a comparative advantage and the country will produce 50 cartons of eggs.

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In a CVP income statement, cost of goods sold is generally:
Nadya [2.5K]

Answer:

d) partly a variable cost and partly a fixed cost.

Explanation:

CVP income statement is also known as cost volume profit income statement, it is generally a product of CVP analysis and it include five elements:

  • Price of products.
  • Volume of activity.
  • Variable cost per unit.
  • Total fixed cost.
  • Mix of product sold.

CVP analysis are conducted to know how changes in cost and volume would impact company´s operating income and net income. It require all the cost of company should be segregated into variable and fixed cost. It also calculate contribution margin, which help to identify the profit of company before deducting fixed cost.

3 0
3 years ago
California has an average rainfall of 3 inches for the month of January. This year California had over 12 inches, which is equiv
crimeas [40]
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12/3 = 4 
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8 0
3 years ago
Kleister Company issues bonds for $100 million and repays a long-term notes payable of $10 million. The company also repurchases
solong [7]

Answer:

TRUE

Explanation:

Kleister Company:

1. Issues bonds for $100 million - INFLOW

2. Repays a long-term notes payable of $10 million. - OUTFLOW

3. The company also repurchases its own shares for $12 million - OUTFLOW

4. Issues stock dividends with a market value of $5 million. - NOT A CASH FLOW

It is therefore true that Net cash flow from financing activities will be: $78 million [100 million - 10 million - 12 million] since the dividends are stock dividends not cash dividends

4 0
3 years ago
A capital budgeting project is expected to have the following cash flows: Year Cash Flows 0 -$850,000 1 $300,000 2 $400,000 3 $5
diamong [38]

The capital budgeting project's net present value at an 18% required rate of return is <u>($4,200).</u>

<h3>What is the net present value?</h3>

The net present value represents the net discounted value of cash inflows after subtracting the present value of cash outflows.

The net present value can be determined by determining the present values of cash inflows and outflows and netting the two values.

<h3>Data and Calculations:</h3>

Required rate of return = 18%

Project period = 3 years

Year    Cash Flows    PV Factor        Present Value

0         -$850,000            1                    -$850,000 ($850,000 x 1)

1           $300,000         0.847               $254,100 ($300,000 x 0.847)

2         $400,000          0.718               $287,200 ($400,000 x 0.718)

3         $500,000        0.609               $304,500 ($500,000 x 0.609)

Net present value                                ($4,200)

Thus, the capital budgeting project's net present value at an 18% required rate of return is <u>($4,200)</u>.

Learn more about the net present value at brainly.com/question/13228231

#SPJ1

8 0
1 year ago
Your team leader puts a suggestion box in the break room. At team meetings, he lists all the reasons why the suggestions can't b
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