Answer:
Missing word <em>"2. What is the total sunk cost regarding the decision to buy the model 200 machine rather than the model 300 machine? 3. What is the total opportunity cost regarding the decision to invest in the model 200 machine?"</em>
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1. Differential cost of buying model 200 machine = Cost of model 200 machine - Cost of model 300 machine
= $342,000 - $373,650
= -$31,650
We'll have a savings of $31,650 if model 200 is purchased rather than model 300
2. $383,000 (The Cost of existing machine). Note: $383,000 is a sunk cost since it has already been incurred.
3. Opportunity cost is the total return of the project if the money was invested elsewhere. The Opportunity cost of investing in model 200 machine is $445,600 (Returns from the alternate project)
Answer:
1. What is the probability that they will lose both contracts?
probability of losing both contracts = (1 - 40%) x (1 - 65%) = 21%
2. What is the probability that they win only one contract?
probability of winning 1 contract = 1 probability of winning both contracts - probability of not winning any contract = 1 - 21% - 26% = 53%
3. What is the probability that they win both contracts?
the probability of winning both contracts = probability of winning first contract x probability of winning second contract = 40% x 65% = 26%
Answer: D. Product costs are expensed in the period the related product is sold
Explanation:
The statement that is true with regards to product cost is that product costs are expensed in the period the related product is sold.
It should be noted that the account for the cost of goods sold consist of product cost. In a situation whereby goods are not sold, the goods will be carried to the next period.
Answer:
B, D and E
Explanation:
The sales department is a common component that is all organizations. It is comprised of sales representatives with different skills and abilities. The best persons will share similar characteristics. These are the traits that make them effective and puts them at the top. They include
- Communication skills. A goods salesperson is able to initiate and sustain a conversation with a customer. Clients tend to resist sale representative whose interest is to close a sale as quickly as possible. He or she must provide excellent proposals and quotes to keep the client interested.
- Maintain relationship with clients. A good salesperson maintains a relationship with customers. He or she is not interested in the current deal only, but future prospects too.
- Competitiveness. To achieve sales targets, a good salesperson must demonstrate and maintain assertiveness and aggregation in the marketplace.
Answer:
Only if the stock price is greater than 
Explanation:
-Ignoring time value of money, the stock's holder will only make a profit if the stock price at time of maturity is greater than .
-Price must be greater than total cost ($120+$6) of buying the option.
-The option will not be exercised if the stock price is between $120 and $126. If exercised at these prices, the holder will make a loss.
