Answer:
$550,000
Explanation:
Based on the information given the OPPORTUNITY COST OF RUNNING THE HARDWARE STORE will be $550,000 ($500,000+$50,000), which include the amount of $500,000 which is the cost of renting the store as well as to the cost to buy the stock while the $50,000 is her salary as an Accountant, reason been that she would QUIT HER JOB as an accountant in order for her to run the store.
Therefore the OPPORTUNITY COST will be $550,000
Answer:
The answer is "".
Explanation:
Using formula:
Where m=compounding period
Answer:
$250,000
Explanation:
Calculation to determine At what sales volume would the two stores have equal profits or losses
First step is to determine the Difference in Fixed Cost
Fixed Cost - Store B $200,000
Fixed Cost - Store A $125,000
Different in Fixed Cost $75,000
($200,000-$125,000)
Second step is to determine the Change in Variable Cost Ratio
Variable Cost Ratio - Store A 60%
Variable Cost Ratio - Store B 30%
Change in Variable Cost Ratio 30%
(60%-30%)
Now let determine what the sales volume would the two stores have equal profits or losses
Using this formula
Sales volume = Fixed Cost/Change in Variable Cost Ratio
Let plug in the formula
Sales volume=$75,000/30%
Sales volume=$250,000
Therefore the sales volume in which the two stores would have equal profits or losses is $250,000
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