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3 years ago

Which of the following might help to solve a free-rider problem? Select all that apply:

Business

1 answer:

Delvig [45]3 years ago

7 0

Answer:

Explanation:

Since not everyone in a given community would be inclined to pay for a public good, everyone could be made to pay for it through tax.

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A company estimates that the appropriate discount rate (i.e., the cost of capital) for Project A, Project B, Project C and Proje

aliina [53]

Answer:

a. Project A requires an up-front expenditure of $1,000,000 and generates a net present value of $3,200.

Explanation:

The company should accept project A because it provides a positive net present value of $3,200 that is the highest among all the projects.

When the IRR of a project is lower than the required rate of return of the project, it will generate the negative net present value because at IRR the net present value of the project will be zero and at a higher rate than IRR it will be negative.

The project with a profitability index of less than 1 generates a negative NPV because the present value of future cash flows is less than the initial cash outflow.

Project D also generates a positive net present value but it is lower than project A. So, after comparing the results we will choose the project with higher NPV.

4 0

3 years ago

When Lofonift Inc. introduced its flagship product, an MP3 player, it captured the MP3 player market by offering its product at

mestny [16]

Answer:

Predatory pricing.

Explanation:

When Lofonift Inc. introduced its flagship product, an MP3 player, it captured the MP3 player market by offering its product at the lowest price in the market. This gradually forced many of its competitors out of business. Once its competitors were out of business, Lofonift Inc. raised its prices. In this scenario, Lofonift Inc. most likely indulged in predatory pricing.

Predatory pricing is a strategy used by some business owners to reduce the cost of a particular commodity or item to the lowest possible amount such that the available competitors will be driven out of business.

8 0

2 years ago

Sheddon Industries produces two products. The products' identified costs are as follows: Product A Product B Direct materials $

bekas [8.4K]

Answer:

The cost per unit for product B is $ 15 per unit

Explanation:

Only Manufacturing Costs are used in Product Costing. Thus to find the Cost Per Unit of Product B, we Prepare a Manufacturing Cost Summary for Product B.

Step 1 Prepare a Manufacturing Cost Summary for Product B

Direct materials $ 15,000

Direct labor $24,000

Overhead costs($24,000/$36,000) × $54,000 $36,000

Total Cost for Product B $75,000

Step 2 Calculate the Cost Per Unit for Product B

Cost Per Unit = Total Cost / Number of Units Produced

= $75,000 / 5,000 units

= $ 15 per unit

3 0

3 years ago

Read 2 more answers

The QuickBooks Online ecosystem gives you and your clients access to a wide range of (1.)__________ to help (2.)___________ thei

Debora [2.8K]

Answer:

Apps,streamline

Explanation:

The QuickBooks EcoSystem can be regarded as a quick box software along with different apps that has connection with it. It brings about good functionality in Businesses, through QuickBooks EcoSystem, accountant of a company can easily connect with different apps that allows to manage client and improve productivity. It should be noted QuickBooks Online ecosystem gives you and your clients access to a wide range of apps to help streamline their business and increase efficiencies.

8 0

3 years ago

Jobs Inc. has recently started the manufacturer of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks

trapecia [35]

Answer:

Jobs Inc.

1. The offer should not be accepted.

2. The offer should be accepted.

Explanation:

a) Data and Calculations:

Units of Tri-Robos to be manufactured = 21,300

Costs of manufacturing:

Direct materials $1,086,300

Direct labor ($39 per robot) 830,700

Variable overhead ($5 per robot) 106,500

Allocated fixed overhead ($28 per robot) 600,000

Total $2,623,500

Unit cost = $123.17 ($2,623,500/21,300)

Price from Tiench Inc per unit = $113

Total offer price = $2,406,900 ($113 * 21,300)

Make Buy Net Income Increase (Decrease)

Direct materials $1,086,300 $ $

Direct labor 830,700

Variable overhead 106,500

Fixed overhead 195,000

Purchased price 2,406,900

Totals $2,218,500 $2,406,900 $188,400 Decrease

Make Buy

Direct materials $1,086,300

Direct labor ($39 per robot) 830,700

Variable overhead ($5 per robot) 106,500

Allocated fixed overhead ($28 per robot) 600,000

Total $2,623,500 $2,406,900

Opportunity cost 375,000

Total $2,998,500 $2,406,900 $591,600

8 0

3 years ago