All categories

3 years ago

Demonstrating opportunity cost is done through production

Business

1 answer:

Leni [432]3 years ago

8 0

Answer:

Possibility

Hope this helps :)

Explanation:

You might be interested in

Does it make sense for ethan to take a year off of school to raise the money?

Vinvika [58]

I would argue yes, you don’t want to borrow a loan because then they still charging fees if you don’t pay monthly. Taking a year of to earn money for school and not having to loan money is a great idea.

4 0

3 years ago

Read 2 more answers

Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $11.00; direct labor, $25.00,

Oksi-84 [34.3K]

Answer:

$3.20 per unit

Explanation:

In this question, we have to compare the cost between two cases

In the first case, the total cost per unit would be

= Direct materials per unit + direct labor per unit + overhead cost per unit

= $11 + $25 + $17

= $53

In the first case, the total cost per unit would be

= Purchase price + overhead cost

= $48.55 + $17 × 45%

= $48.55 + $7.65

= $56.20

So, the difference would be

= $56.20 - $53

= $3.20 per unit

3 0

3 years ago

Calculate the opportunity cost of capital (WACC) for a firm with the following capital structure: 53% in debt, 15% in preferred

tamaranim1 [39]

Answer:

The WACC is 8.75%

Explanation:

The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure is made up of debt, preferred stock and common stock.

The formula for WACC is,

WACC = wD * rD * (1 - tax rate) + wP * rP + wE * rE

Where,

w represents the weight of each component in the capital structure or value of each component as a proportion of total assets

r represents the cost of each component

we take after tax cost of debt. So we multiply cost of debt by (1 - tax rate)

The weight of common equity = 1 - (0.53 + 0.15) = 0.32 or 32%

The WACC is:

WACC = 0.53 * 0.0712 * (1 - 0.29) + 0.15 * 0.109 + 0.32 * 0.1387

WACC = 0.0875 or 8.75%

7 0

3 years ago

On January 1, 2013, F Corp. issued 2,000 of its 10%, $1,000 bonds for $2,080,000. These bonds were to mature on January 1, 2023,

Varvara68 [4.7K]

Answer:

F Corp.'s gain or loss in 2018 on this early extinguishment of debt was $16,000

Explanation:

According to the given data we can note that the Bond premium at issue is $80,000

Hence, Amortization of premium through July 1, 2016= $80,000/20 = $4,000 per period$

So, 4,000 x 11 periods= $44,000

There is an Unamortized premium July 1, 2018 $36,000 and Face value of $2,000,000

The Book value July 1, 2018= $2,036,000

Therefore, the Call (redemption) price = $2,000,000 x 1.01= $2,020,000

Therefore, gain or loss in 2018= The Book value July 1, 2018- Call (redemption) price

Gain on extinguishment=$2,036,000 - $2,020,000 = $16,000

3 0

3 years ago

Who do u pull out a tooth that is barely loose

marusya05 [52]

Just pull it out with tweezers

6 0

3 years ago

Read 2 more answers