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aleksandrvk [35]
3 years ago
5

John's friend just gave him a pair of concert tickets to see his favorite rock group perform this weekend. Each ticket sells for

$25. John's boss asked him to work overtime the same weekend and at the same time as the concert. John currently makes $10.00 an hour and his overtime pay for the four hours his boss asked him to work is double the hourly rate. If John decides to go to the concert, his opportunity cost is
Business
1 answer:
Len [333]3 years ago
6 0

Answer:

$80 lost for not working

Explanation:

Opportunity cost refers to the sacrificed benefits as a result of preferring on a particular option over another. As people make choices, the forfeit one option in favor of another. Opportunity cost is the missed value of the next best alternative.

For John, he has a choice between working or going to the concert.  He has two tickets worth $50. Working would mean her twice her regular income, which is $20 per hour. If he works for four hours, his total earning will be $80. If John chooses to go to the concert, he will miss the opportunity to earn $80. The opportunity cost will be the missed $80 that he would have received from working.

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A manufacturing company incurs direct materials costs of $6 per unit. The total direct materials cost is______when the company m
Alja [10]

Answer:

$12,000

Explanation:

The manufacturing company has a direct materials cost of $6

The company manufactures 2,000 unit

Therefore total direct material cost can be calculated as follows

= 2,000×6

= $12,000

Hence the total direct material cost of $12,000

4 0
2 years ago
Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. Company is currently operating at 75 p
yulyashka [42]

Answer:

Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600 when the fixed costs are not 20 %

Yes Strawberry line should be dropped as it reduces the overall profit by$ 1720 even when the fixed costs are  20 %

Explanation:

Cotrone Beverages

Differential Analysis

                          Totals                    Totals             Difference / Change

                      including    (less)   Without   (equals)

                     Strawberry             Strawberry

Sales                           253,200    167,600           85600  Decrease

Variable costs              201,400   124,200          77200    Decrease

Fixed costs allocated  35,600        28,480          7120    Decrease

<u>Operating profit (loss)   </u><u>13,200       14,920           (1720)     Increase</u>

<u>Working </u>

<u>Total Fixed Costs Reduced will be = </u> 35,600 *20%= 7120

Here we see the profit is increased by 1720 therefore strawberry line should be dropped.

Cotrone Beverages

Differential Analysis

                          Totals                    Totals             Difference / Change

                      including    (less)   Without   (equals)

                     Strawberry             Strawberry

Sales                           253,200    167,600           85600  Decrease

Variable costs              201,400   124,200          77200    Decrease

Contribution margin     51,800       43,400           8,400    Decrease

Fixed costs allocated  35,600        23,600          12000    Decrease

<u>Operating profit (loss)   </u><u>13,200       16,800           (3,600)   Increase</u>

<u></u>

Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600

<u><em>Working </em></u>

<u><em>We find the totals with and without the strawberry product line and then subtract to find the   differential costs</em></u>

Cotrone Beverages

Product                        Original             Strawberry       Orange     Total

Sales                            $65,200            $85,600         $102,400   253,200

Variable costs              44,000              77,200             80,200      201,400

Contribution margin $21,200                $8,400          $22,200       51,800

Fixed costs allocated 9,400                  12,000              14,200     35,600

Operating profit (loss) $11,800               $(3,600)           $8,000     13,200

If we drop the strawberry line then the new totals would be

Product                        Original          Orange      Total

Sales                            $65,200       $102,400   167,600

Variable costs              44,000          80,200      124,200

Contribution margin $21,200          $22,200       43,400

Fixed costs allocated 9,400               14,200     23,600

Operating profit (loss) $11,800           $8,000     16,800

6 0
2 years ago
When employees who don’t want to attend an all-day workshop take the attitude "You can make me go, but you can’t make me pay att
Galina-37 [17]

Answer:

The answer is lose-lose

Explanation:

In a lose-lose approach, one's  actions hurt oneself as much as they do their opponent.

6 0
2 years ago
Read 2 more answers
The journal entry to record the purchase of materials on account is a(n)
Pani-rosa [81]
Raw Materials Inventory $XX Accounts payable
8 0
2 years ago
Neoclassical economists believe that economic growth can be achieved through the increase in the potential level of GDP. This ca
11111nata11111 [884]

Answer:

The correct answer is the option D: All of the above.

Explanation:

To begin with, the neoclassical theory of economic growth is considered to be one of the most well known and important theory in the economics sciences due to the fact that it establishes how the economy can grow and more important what are the key factors that need to be affect in order to that growth happens. Moreover, it states that a steady growth rate can be achieved only by the combination of three major factors that are: the labor, the capital and the technology. That is why that with the purpose to increase the GDP there will be a need in rise the productivity through an investment in human capital, in physical capital and in technology as well.

7 0
3 years ago
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