1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nonamiya [84]
3 years ago
8

Harvey quit his job at State University, where he earned $45,000 a year. He figures his entrepreneurial talent or forgone entrep

reneurial income to be $5,000 a year. To start the business, he cashed in $100,000 in bonds that earned 10 percent interest annually to buy a software company, Extreme Gaming. In the first year, the firm sold 11,000 units of software at $75 for each unit. Of the $75 per unit, $55 goes for the costs of production, packaging, marketing, employee wages and benefits, and rent on a building.
The explicit costs of Harvey's firm in the first year were:

A. $50,000B. $60,000C. $100,000D. $150,000
Business
1 answer:
son4ous [18]3 years ago
3 0

Answer:

The options are wrong,find below correct multiple choices:

$605,000

$825,000

$655,000

$150,000

The correct option is $605,000

Explanation:

Explicit costs are costs  incurred  that require actual cash settlement not costs of alternative forgone as in the case of implicit costs.

There is only example of explicit cost for Harvey Business in the first year of operation,which is the cost of production,packaging,marketing,employee wages and benefits and rent on a building.

In other words,the explicit costs incurred in year one =$55*11,000 units

                                                                                          =$605,000

The correct option  is the of those ones provided above.

You might be interested in
How do I know if I have enough money to buy a Kate spade bag?
masya89 [10]
Check the price of the bag and see if it is equal to the money you have collected
3 0
3 years ago
A ________economy usually stresses the equality of all citizens. A________ economy aims to be self-sufficient. A ________economy
Alja [10]

Answer:

Command economy

Closed Economy

Traditional Economy

Mixed Market Economy

Explanation:

A command Economy  stresses the equality of all citizens.e. g Cuba and North Korea

A closed economy aims to be self sufficient with all activities confined to its economy.e.g Brazil's economy.

A traditional economy being the oldest form of economy upholds culture and history and as such relies more on bartering than money. It is mostly common in emerging markets and developing countries.

A mixed economy encourages private businesses with a degree of state monopoly.Example is the USA's economy.

5 0
3 years ago
Read 2 more answers
In what positive and negative ways has the Internet changed the conduct and coordination of global business?
Whitepunk [10]

Answer: Positive ways; Barriers in connecting is slightly no more, Negative ways; Increase in fraud and cyber theft

Explanation:

The internet has changed the conduct and cordination of global business in many ways both positively and negatively. Considering the positive ways

Positive Ways: Barriers in connecting is slightly no more: connecting to one another has been made easy to do business recently, people in continents can carry out a transaction and a trade under minutes of interaction and get the goods and services exchanged among each other immediately.

Negative ways; Increase in fraud and cyber theft; despite the swift nature of doing business now, it has also Increased fraud as some people disguise themselves to be traders and businessmen just to collect people's money.

7 0
3 years ago
If consumer has rational, monotonic and convex preferences, which of the following is true concerning the substitution effect of
Zanzabum

Answer:

It will lead to an increase in consumption of good X only if X is a normal good ( D )

Explanation:

If consumer has rational, monotonic and convex preference the decrease in price of good X will lead to an increase in consumption of good X only if X is a Normal good .

This is because the demand for Normal goods increases with increase in consumers income. therefore <em>a decrease in price will automatically lead to an increase in demand because of the increase in the purchasing power of the consumer's income.</em>

5 0
2 years ago
American Paper Company has a beta of 1.2. The risk-free rate is 6 percent and the required return on the market is 14 percent. T
Lynna [10]

American Paper Company has a beta of 1.2. The risk-free rate is 6 percent and the required return on the market is 14 percent. The required rate of return on the security is:

  • -15.6%
  • -13.2%
  • -22.0%
  • -22.8%

<h3>What Is the Security Market Line?</h3>

The security market line (SML) is a line drawn on a chart that serves as a graphical representation of the capital asset pricing model (CAPM)—which shows different levels of systematic, or market risk, of various marketable securities, plotted against the expected return of the entire market at any given time.

Its Also known as the "characteristic line," the SML is a visualization of the CAPM, where the x-axis of the chart represents risk (in terms of beta), and the y-axis of the chart represents expected return. The market risk premium of a given security is determined by where it is plotted on the chart relative to the SML

The formula for plotting the SML is:

Required return = risk-free rate of return + beta (market return - risk-free rate of return)

Learn more about SML on:

brainly.com/question/15877803

#SPJ4

3 0
1 year ago
Other questions:
  • According to the preprinted language what type of deed is to be used at closing to convey the title to the real property that is
    11·1 answer
  • March 1, 2017, Alpha Company's beginning work in process inventory had 8,000 units. This is its only production department. Begi
    14·2 answers
  • Use the three-step process in the aicpa conceptual framework to assess whether janes' independence has been impaired. describe h
    10·1 answer
  • If a company that is in a 35 % tax bracket invests in assets that increase its depreciation expense by $ 562 per year, its chang
    12·1 answer
  • Exercise 11-6 Net present value LO P3 A new operating system for an existing machine is expected to cost $520,000 and have a use
    14·1 answer
  • A company sold merchandise with a cost of​ $217 for​ $390 on account. The seller uses the perpetual inventory system. The entry
    12·1 answer
  • When did banks of deposit first arise?
    8·1 answer
  • A firm is deciding whether or not to complete the building of a new office.
    7·1 answer
  • Based on the Management in Action case, if an employee asks Korey for time off to take care of a sick child, Korey may believe t
    6·1 answer
  • Suppose Stuart Company has the following results related to cash flows for 2021: Net Income of $5,600,000 Increase in Accounts P
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!