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3 years ago

Please, make sure these are correct!

Business

1 answer:

Kitty [74]3 years ago

8 0

Answer:

1. C

2. B

3. C

Explanation:

1. Relevant costs are cost that influence management decision making. Relevant revenues must differ between alternatives

2. Opportunity cost is defined as the next best alternative. Between 2 options one is forgone and the other is taken up due to it being more valuable.

3. Avoidable costs are cost that can be avoided and they differ between alternatives.

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If $ 9 comma 000 is invested in a certain business at the start of the year, the investor will receive $ 2 comma 700 at the end

laiz [17]

Answer:

NPV= 1,036.16

Explanation:

Giving the following information:

Initial investment= $9,000

Cash flows= $2,700 at the end of each of the next four years.

Interest rate= 3%

To calculate the net present value (NPV), we need to use the following formula:

NPV= -Io + ∑[Cf/(1+i)^n]

Cf1= 2,700/1.03= 2,621.36

Cf2= 2,700/1.03^2= 2,545

Cf3= 2,700/1.03^3= 2,470.88

Cf4= 2,700/1.03^4= 2,398.92

Total= 10,036.16

NPV= -9,000 + 10,036.16

NPV= 1,036.16

3 0

3 years ago

Your co-worker, the operations manager of Blue Ocean Seafood Restaurants, has pointed out a slight decline in diners ordering an

cluponka [151]

Answer:

You agree that test marketing could be helpful, but you point out that it may also reveal your ideas to your competitors.

Explanation:

In the give scenario the existing famous cheesy butter biscuits sales are going down. In an effort to increase the revenue of the business the head of product development has a theory that people want lighter options today, and she has recommended test marketing a lower-fat version of the biscuits at select locations in eight major cities across the United States.

This is an innovative solution to the problem and the head of product development should be encouraged to drive the test marketing.

However marketing a lower-fat version of the biscuits at select locations in eight major cities will expose the strategy to competitors. It will be better to conduct the test in a more controlled environment away from competitors.

4 0

3 years ago

A manufacturing company currently produces 1,000 units of a product at a cost of $5,000. The units sell for $7,000. Alternativel

Murljashka [212]

Answer:

The company should not further process the product as it results in income reduction by $1000.

Explanation:

According to the given data, company current profit for 1000 units is :

= (cost of sell) - (cost of manufacturing)

= $7000 - $5000

= $2000 (current profit)

While when company further process the product, the profit will be :

= (cost of sell) - (cost of manufacture)

= $10000 - ( $5000 + $4000)

= $10000 - $9000

= $1000

It clearly shows that further processing the product may result in reduction of profit by $1000.

Hence the company should not further process the product.

4 0

4 years ago

True or false: A put bond allows the holder to force the issuer to buy the bond back at a stated price.

katovenus [111]

The statement that a put bond allows the holder to force the issuer to buy the bond back at a stated price is: True.

A Put Bond is a debt instrument that gives the holder access to repurchase the security within a specific period before the due date. The individual repurchasing sets his price at a given time of issuing the card per value of the bond.

A put bond therefore gives access or allows the Holder to force the issuer to repurchase the bond back at a stated price.

Learn more about Put Bond here:

brainly.com/question/25596583

5 0

3 years ago

When the price of flowers increased from $5.00 to $5.70, the quantity demanded of chocolate increased from 5,550 to 6,150. What

Aloiza [94]

Answer:cross-price elasticity of demand= 1.57

Explanation:

The Cross Price Elasticity of Demand measures the degree at which the quantity demanded for one commodity changes with a change in price of another product. If the two products in comparison show a positive cross elasticity of demand, then both products are substitutes of each other , while a negative results shows both are complementary of each other.

Cross Price Elasticity of Demand= ΔQx/Qx /ΔPy/Py

Cross Price Elasticity of Demand = (Q1x – Q0x) / (Q1x+ Q0x) ÷ (P1y – P0y) / (P1y + P0y),

Q0X = Initial demanded quantity of commodity X =5500

Q1X = Final demanded quantity of commodity X, = 6150

P0Y = Initial price of commodity Y = $5.00

P1Y = Final price of commodity Y= $5.70

Cross Price Elasticity of Demand = (Q1x – Q0x) / (Q1x+ Q0x) ÷ (P1y – P0y) / (P1y + P0y)

= (6150 -5000)/ (6150+5000)/(5.70-5.00)/(5.70 +5.00)

(1,150/11,150)/(0.7/10.7)=0.103139/0.065420= 1.5765 to the nearest hundreths = 1.57

A positive value 0f 1.57 for cross elasticity of demand shows that there is a competitive relationship between chocolate and flowers.

6 0

3 years ago