Answer:
$54,650
Explanation:
Total Net operating income from the two divisions is the difference between the total sales and the total expenses. The total expense is made up of the fixed cost and variable cost. Whilst the variable cost is measured and unique to each departments, the fixed cost is not attributable to a single department.
The variable cost and sales are dependent on the level of activities. The sales less the variable cost gives the contribution margin.
As such, contribution less fixed cost gives the net operating income.
Common fixed cost
= ($77,100 + $43,100 - $10,900)/2
= $54,650
This cost would have been subtracted from each department to get the net operating income hence the division by 2.
Answer:
the payback period = 4.86 years
Explanation:
Seattle's cash flows are as following:
Year Cash flow Accumulated cash flows
0 -$150,000 -$150,000
1 $30,000 -$120,000
2 $30,000 -$90,000
3 $30,000 -$60,000
4 $30,000 -$30,000
5 $35,000 $5,000
6 $35,000 $40,000
etc.
The payback period is between year 4 and 5:
- 4 years + ($30,000 / $35,000) = 4.86 years or
- year 4 + [($30,000 / $35,000) x 365 days] = 4 years and 313 days
Answer:
D. Tasha: "If coffee drinkers expect the price of coffee to rise next month, then current demand will go up and lead to a price increase this month."
This is the only one with incorrect economic analysis
Explanation:
A. is correct because a shortage of supply would drop the price as we can see in the Graph 1 with the supply curve.
B. is correct because if the two goods are substitues then a lower price for caffeinated soft drinks like Mountain Dew would cause the consumer demand for coffe to go down because the consumers would prefer the good with lower price, rising the demand for Mountain dow in detriment of coffe.
C. is correct as we can see in the Graph 1, the increse in the demand would generate a higher price but it would make the demand go back to D1
D. is incorrect because if coffee drinkers consume more coffee this monht the price would lower.
Answer:
The correct answer is "$155".
Explanation:
Given:
She sells to miller,
= $90
She sells to baker,
= $145
She sells to consumers,
= $155
Now,
The value added by miller will be:
= 
=
($)
The value added by the baker will be:
= 
=
($)
hence,
The GDP in this economy will be:
=
($)