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3 years ago

Caroline is training for a triathlon, a timed race that combines swimming, biking, and running.

Business

1 answer:

zalisa [80]3 years ago

6 0

Answer:

Each hour she spends swimming is an hour that she can't spend biking or running. The basic principle this sentence illustrates is:

All choices have opportunity cost.

Explanation:

As per the given situation, Caroline decides to go for swimming. So the time she invests in swimming, she could have done for biking or running during that time. So, opportunity cost of one hour of swimming is an hour of biking or running. Also it is not known that whether Caroline has an incentive if she spends more time swimming. This applies for an hour spent for biking or running as well. Thus, all the three choices have an opportunity cost.

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Firefly Inc. sold land for $225,000 cash. The land had been purchased five years earlier for $275,000. The loss on the sale was

solmaris [256]

Answer:

$225,000

Explanation:

The cash flow statement is divided into three categories investing, operating and financing. The investing activity refers to those activities which deal in buying and selling for long term asset in cash. The buying is cash outflow while the selling is a cash inflow. So the amount reported under the investing activity is $225,000 as cash inflow.

8 0

3 years ago

John Daniel opened a medical practice in Sacramento, California, and had the following transactions during the month of January.

spayn [35]

Answer:

Explanation:

The journal entries are shown below:

1. Cash A/c Dr $34,000

To Common stock A/c $34,000

(Being the cash is received in exchange of common stock)

2. Medical supplied A/c Dr $17,000

To Account payable A/c $17,000

(Being the medical supplies are purchased on account)

3. Cash A/c Dr $1,600

To Service Revenue A/c $1,600

(Being the cash is received for service performed)

4. Office Rent Expenses A/c Dr $3,000

To Cash A/c $3,000

(Being the office rent expense is paid for cash)

5. Accounts Receivable A/c Dr $7,000

To Service revenue A/c $7,000

(Being the service revenue is recorded)

4 0

3 years ago

Carlton runs an adventure excursion company in South America. He'd like to increase the number of people booking his tours. Whic

attashe74 [19]

Answer:

Researching South American holiday destinations online.

Explanation:

As Carlton runs an adventure excursion company in South America and he'd like to increase the number of people booking his tours, researching South American holiday destinations online can lead potential customers to Carlton's company through Google Search ads. In this way, Carlton can have a better idea abut the trends and insights about his potential prospects which definitely will help him in attracting, targeting and getting them in a better and effective way, theretofore, he can increase the number of people booking his tours.

8 0

3 years ago

Use the following information to determine the break-even point in units (rounded to the nearest whole unit): Unit sales 58,000

Tema [17]

Answer:

29,394 units

Explanation:

The formula for break even point is given as Fixed cost / Contribution margin.

Where;

Contribution margin = Sales per unit - Variable cost per unit

Given that ;

Fixed cost = $194,000

Unit selling price = $14.90

Unit variable cost = $8.30

Therefore;

BEP(units) = $194,000 / $14.90 - $8.30

= $194,000 / $6.6

= 29,394 units

5 0

3 years ago

Fishermen’s Corp. is considering purchasing a boat. If the boat was purchased, it is expected to receive $20,000 at the end of t

ozzi

Answer:

The boat today is worth 100,440 dollars

Explanation:

We need to solve for the present value of the payment Fishermen's Corp will receive for the boat:

We will apply the formula for lump sum to each $\frac{Maturity}{(1 + rate)^{time} } = PV$

cash flow and then add them together

$\frac{20,000}{(1 + 0.08)^{1} } = PV$

$\frac{40,000}{(1 + 0.08)^{2} } = PV$

$\frac{60,000}{(1 + 0.08)^{3} } = PV$

Year Nominal Present Value

1 20000 18, 518

2 40000 34,293

3 60000 47,630

TOTAL 100,441

5 0

3 years ago