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3 years ago

If you are willing to purchase a house for $500,000 and you purchase the house for $500,000, this transaction will generate:

Business

1 answer:

wel3 years ago

4 0

Answer:

c. $0 worth of buyer surplus and unknown amount of seller surplus

Explanation:

Given that

Selling price of house = $500,000

The purchase value of house =$500,000

By considering the above information, the purchase and sales value are the same which reflects that the buyer surplus is zero and there is no definite amount or unknown amount of seller surplus as the data is not given.

Hence, the correct option is c.

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What industry cannot rely on estimation

jeka94

There is no industry which can not relay on estimation, all industries needs estimation.

The two primary categories of this profession are construction and manufacturing, according to the Bureau of Labor Statistics. It states that more than half of all cost estimators work in the construction industry, where they may further specialize in projects for homes, businesses, industries, or the government.

Cost estimation aids in setting the project budget, planning the required work, and managing new resources. Cost estimates are also of the utmost importance when trying to win over new clients. Before starting actual building, property owners also utilize cost estimates to evaluate the viability of their projects.

Learn more about estimation here

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7 0

2 years ago

A music school has budgeted to purchase three musical instruments. they plan to purchase a piano costing $3,000, a guitar costin

daser333 [38]

Assuming the costs are normally distributed, then Z = (X-mu)/sigma

For piano Z= (3000-4000)/2500 = -0.4

For guitar Z= (550-500)/200 = 0.25

For drums set Z= (600-700)/100 = -1

Drums set < Piano < Guitar

Drums cost is lowest when compared to the instruments of same type .

Guitar cost is highest when compared to the instruments of same type.

8 0

3 years ago

Charged off as bad debt canceled by credit grantor. True or False

guajiro [1.7K]

Answer:

"Charge off" means that the credit grantor wrote your account off of their receivables as a loss, and it is closed to future charges. When an account displays a status of "charge off," it means the account is closed to future use, although the debt is still owed.

7 0

4 years ago

An investment project provides cash inflows of $600 per year for eight years.

I am Lyosha [343]

Answer:

(i) 2.71 years

(ii) 5.38 years

(iii) Never or 0

Explanation:

1. Payback period:

= Initial cost ÷ cash inflows

= 1625 ÷ 600

= 2.71 years(Approx).

2. Payback period:

= Initial cost ÷ cash inflows

= 3225 ÷ 600

= 5.38 years(Approx).

3. The payback period for an initial cost of $5,100 is a little trickier.

Notice that the total cash inflows after eight years will be:

= 8 × $600

= $4,800

Payback period

= Initial cost ÷ cash inflows

= 5100 ÷ 600

= 8.5

This answer does not make sense since the cash flows stop after eight years, so again, we must conclude the payback period is never.

7 0

4 years ago

Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $22, computed as fol

notsponge [240]

Answer:

It is cheaper to buy the component.

Financial advantage= $23,500

Explanation:

Giving the following information:

Direct materials $7

Direct labor $8

Variable manufacturing overhead $3

Fixed manufacturing overhead $4

An outside supplier has offered to provide the annual requirement of 4,700 of the parts for only $15 each.

First, we need to calculate the total cost of making the product:

Production in-house:

Total cost= (7 + 8 + 3 + 4)*4,700= 103,400

Buy:

Fixed costs= 2*4,700= 9,400

Buy= 4,700*15= 70,500

Total cost= 79,900

It is cheaper to buy the component.

Financial advantage= 103,400 - 79,900= $23,500

5 0

3 years ago