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Maslowich
3 years ago
9

Kevin plans to go to college after he graduates from high school. The tuition is $8,000 a year, and room, board, and books cost

$7,000 a year. If Kevin takes a full-time job instead of going to college, he would earn $30,000 a year. What is the opportunity cost if Kevin decides to attend college
Business
1 answer:
blondinia [14]3 years ago
8 0

Answer:

$30,000

Explanation:

Opportunity costs refers to the incomes or benefits a person, business or investor loses or forgone when one alternative is chosen over another.

Since Kelvin will lose earnings of $30,000 a year from a full-time job if Kevin decides to attend college, this $30,000 a year is therefore the opportunity cost.

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Explain the meanings of market timing and security selection, highlighting their similarities and differences.
elena-s [515]
<h3>What Is Market Timing?</h3>

Market timing is the act of moving investment funds into or out of financial markets – or moving funds between asset classes – based on predictive methods. If an investor can predict when the market will go up and down, they can trade to turn that market movement into a profit.

<h3>What is security selection?</h3>

Security selection is the process of determining which financial stocks to include in a particular portfolio. Good stock picks can generate profits during market ups and downs and climate losses during bear markets.

Security selection implies picking individual stocks that the fund manager expects will outperform the market as a whole. Market timing implies betting on systematic risk factors. We see that Swedish equity mutual funds engage in both these types of active behaviour.

To learn more about mutual funds from given link

brainly.com/question/14967316

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8 0
2 years ago
M8-1 Evaluating the Decision to Extend Credit [LO 8-1 Nutty Productions Inc. generated service revenue of $48,000 and income fro
emmasim [6.3K]

Answer:

Yes

Explanation:

In this question, we have to compare the total income based on credit extended The computation is shown below:

If credit is not extended, then the total income would be

= Service revenue + income from operations

= $48,000 + $19,000

= $67,000

If credit is extended, then the total income would be

= Service revenue + income from operations - additional expenses for wages and bad debts

= $87,000 + $19,000 - $34,000

= $72,000

Yes the company extend credit as the total income is increased by $5,000

7 0
3 years ago
What is the third primary decision when it comes to making financial decisions (along with spending and saving)?
Kaylis [27]
Setting your priorities could be a primary third desicion when it comes to making financial decisions.
8 0
3 years ago
To ensure that a borrower is not using short-term bank credit to finance a part of its permanent needs for funds, banks often re
Salsk061 [2.6K]
True I’m maybe wrong but ye I think it’s true
8 0
3 years ago
Company A produces and sells 10,000 units of its product for $10 per unit. Variable costs are $4 per unit and fixed costs total
Anastaziya [24]

Answer:

Effect on income= $2,000 decrease

Explanation:

Giving the following information:

Selling price= $10 per unit.

Variable costs are $4 per unit

A move to a larger facility would increase rent expense by $8,000, and allow the company to meet its demand for an additional 1,000 units.

We need to calculate the effect in the income of moving to a larger facility.

Effect on income= total contribution margin increase - increase in fixed costs

Effect on income= 1,000*(10 - 4) - 8,000

Effect on income= $2,000 decrease

6 0
3 years ago
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