Answer:
A. $1,600
Explanation:
Ningbo Steel
Income Statement
Sales Revenue $11,000
Less Cost of goods sold <u>$5,000
</u>
Gross Profit $6,000
Less Operating Expense <u>$3,000
</u>
Earning Before Interest and Taxes $3,000
Less Interest Expense <u>$1,000</u>
Earning before Tax $2,000
Less Tax Expenses (2,000 *20%) <u>$400</u>
Net Profit after tax <u>$1,600</u>
Answer:
c. comparative advantage in
Explanation:
In economics, comparative advantage is the advantage a trade party has over the other party, in the production of a a particular good that has a relatively lower opportunity cost. It simply involves exploring the option that has overall best package.
North Carolina has a comparative advantage in sweet potato production relative to Florida, as the opportunity cost involved is lower, since there is little potential benefits North Carolina will get in the production of oranges.
Answer:
Edgar
The amount he will owe on this debt in 2 years for quarterly compounding is:
= $7,387.28
Explanation:
Accumulated loan debt = $5,000
Interest rate per year = 20%
Period of loan = 2 years
Interest compounding = quarterly
From an online financial calculator:
N (# of periods) 8
I/Y (Interest per year) 20
PV (Present Value) 5000
PMT (Periodic Payment) 0
Results
FV = $7,387.28
Total Interest $2,387.28
Answer:
Effect on income= $0
Explanation:
<u>Because the company has excess capacity and it is a special offer that would not affect normal sales, we will not include the fixed costs.</u>
Effect on income= total sales revenue - total variable cost
Effect on income= 24*4,960 - (20 + 4)*4,960
Effect on income= $0
