Answer:
a. Pay back period is 4 years and 18 days
b. Net present value is - $5,909. Since the NPV is negative, the project should be rejected.
Explanation:
Note: See the attached for the calculation tables of a and b.
a. Pay back period = 4 years and [($2,565/$51,244)*365 days] = 4 years and 18 days approximately.
Answer:
The correct answer is letter "C": the Macro Islands have a comparative advantage in producing fishing boats, and the Micro Islands have a comparative advantage in producing guava jelly.
Explanation:
Comparative advantage is an advantage an individual, organization or country has to use <em>opportunity costs</em> in their production compared to their competitors. The scenario described above does not imply that the individual, organization or country has an absolute advantage.
In the example proposed:
- Comparative advantage of Macro islands in fishing boats =
- Comparative advantage of Micro islands in fishing boats =
- Comparative advantage of Macro islands in jars =
- Comparative advantage of Micro islands in jars =
Thus, <em>the Macro Islands have a comparative advantage in producing fishing boats, and the Micro Islands have a comparative advantage in producing guava jelly.</em>
Answer: A.) Contribution Margin analysis
Explanation: The contribution margin analysis could be explained as an analytical tool in accounting which helps managers in observing variation or differences in the budgeted and actual contribution margin of a product. The contribution margin is used to determine the revenue made on a product after deducting the fixed cost incurred in it's production. It is also used to evaluate the performance of individual product derived from the amount of residual profit after deducting necessary production cost.
Answer:
$254
Explanation:
First we must calculate the employee's remaining taxable portion = wage base - year to date earnings = $118,500 - $114,400 = $4,100
Then we multiply the employee's remaining taxable portion times FICA-OASDI tax rate = $4,100 x 6.2% = $254.20, we round down to the nearest dollar = $254
Answer:
$125
Explanation:
average inventory = 500 / 2 = 250
annual holding costs = 250 x $0.50 = $125
also, if you want to determine the order cost:
EOQ = √[(2 x S x D) / H]
EOQ = 500
H = annual inventory holding cost per unit = $0.50
D = annual demand = 500 x 12 = 6,000
500 = √[(2 x S x 6,000) / 0.50]
500² = 12,000S / 0.50
250,000 x 0.5 = 12,000S
125,000 = 12,000S
S = 125,000 / 12,000 = $10.417 ≈ $10.42
annual ordering costs = $10.42 x 12 = $125.04
