Answer:
The elimination of the North division would result in an increase to net operating income of $100,000 for the South division.
Explanation:
Please see computation of the company's overall net profit
= South sales - South variable costs - South traceable fixed costs - South allocated common corporate cost - North allocated common corporate cost
= $880,000 - $550,000 - $80,000 - $50,000 - $100,000
= $100,000 profit.
N.B
Since the North division has been eliminated, all the items for North division would all be ignored except its allocated common corporate cost.
Answer:
Investor A = $545216 .
Investor B = $352377
Investor C = $897594
Explanation:
Annual rate ( r ) = 9.38%
N = 41 years
<u> Calculate the balance at age of 65</u>
1) For Investor A
balance at the end of 10 years
= $2000 (FIA, 9.38 %, 10) (1 + 0.0938) ≈ $33845
Hence at the end of 65 years ( balance )
= $33845 (FIP, 9.38 %, 31) ≈ $545216 .
2) For investor B
at the age of 65 years ( balance )
= $2000 (FIP, 9.38%, 31) = $322159 x (1 + 0.0938) ≈ $352377
3) For Investor C
at the age of 65 years ( balance )
= $2000 (FIP, 9.38%, 41) = $820620 x (1 + 0.0938) ≈ $897594
Answer:
d.efficient in production but not necessarily in allocation.
Explanation:
The production possibility curve portrays the cost of society's choice between two different goods. An economy that operates at the frontier has the highest standard of living it can achieve, as it is producing as much as it can using the same resources. If the amount produced is inside the curve, then all of the resources are not being used.
- all points on the curve are points of maximum productive efficiency
- However, an economy may achieve productive efficiency without necessarily being allocatively efficient. Market failure (such as imperfect competition or externalities) and some institutions of social decision-making (such as government and tradition) may lead to the wrong combination of goods being produced (hence the wrong mix of resources being allocated between producing the two goods) compared to what consumers would prefer, given what is feasible on the PPF.
