Question 7 of 10

Suppose there are only two producers of aircraft in the world, AirCraft in the United States and AirEurope in the European Union

Jlenok [28]

Answer:

1. AirEurope should produce if it wants to maximize its profit.

2. False

Explanation:

New payoffs after subsidy:

Aircraft/ AirEurope Produce Not Produce

Produce -3 , <u>6</u> 75 , 0

Not Produce 0 , 74 0 , 0

With a $9 million subsidy, regardless of whether Aircraft produces or not, AirEurope should<u> produce</u> if it wants to maximize its profit.

The statement is false (Aircraft would earn a negative payoff if it enters).

8 0

3 years ago

iscuss the burden placed on people or organizations contacted as references for job candidates. How do organizations cope with t

mario62 [17]

Answer:In human resource planning, forecasting is an intermediary step

Explanation:

FALSE

The process of human resource planning consists of three stages: forecasting, goal setting and strategic planning, and program implementation and evaluation. The first step in human resource planning is forecasting

3 0

3 years ago

Exercise 6-31 (Algorithmic) (LO. 3) Stanford owns and operates two dry cleaning businesses. He travels to Boston to discuss acqu

jekas [21]

,Answer:

See below

Explanation:

With regards to the above, since the restaurant was not acquired, the cost that is related to acquisition of restaurant will be ignored. It means that the $35,750 will not qualify for deduction.

Also, the expenses for considering the bakery $53,700 will not be allowed all at once.

Now, for any amount exceeding $50,000 there will be a reduction of $5,000

Reduced = $53,700 - $50,000 = $3,700

Then,

$5,000 - $3,700 = $1,300 deductions

Now,

$53,700 - $1,300 = $52,400 which is the deduction allowed in 180 months

Deduction per month = $52,400 / 180 = $291.11. Per month

Deduction for 2 months will be = 2 × $291.11 = $582.22

Therefore, eligible deduction = $582.22 + $1,300 = $1,882.22

4 0

3 years ago

Frankfurter Company, a U.S. company, had a ruble receivable from exports to Russia and a euro payable resulting from imports fro

IgorC [24]

Answer:

The correct option is C.

Explanation:

Foreign exchange gain or loss is the gain or loss made on transactions based on the movement in the exchange rates.

Ruble receivable from export to Russia: For Frankfurter Company to have recorded a foreign exchange loss, as at the time the transaction was consummated the exchange rate would have been higher compared to the rate of settlement. For example, if 1 ruble = $1.5 on April 1 (when the export was made), on settlement date, it moved to 1 ruble = $1.4, the company would suffer a loss of $0.1. You just need to multiply this $0.1 by the value of the exports.
Euro payable from imports from Italy: For the company to have suffered a foreign exchange loss, it means the exchange rate was not favorable at the time of settlement of the payment - means the exchange rate moved higher.

4 0

3 years ago

JB Enterprises has $2.5 million of current assets and $1.5 million of current liabilities. Therefore, their current ratio is 1.6

MrRa [10]

It would be a 2.5 ratio

3 0

3 years ago